Dow falls nearly 70 points despite strong GDP report, posts 3-day losing streak

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A trader makes a bubble with a chewing gum ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) on January 29, 2019 in New York City.

Johannes Eisele | AFP | Getty Images

A trader makes a bubble with a chewing gum ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) on January 29, 2019 in New York City.

U.S. and North Korean officials failed to agree on steps toward North Korea taking down its nuclear armament. Earlier, Trump and Kim — seated together at a conference table — appeared confident about the prospect of improving diplomatic relations.

The iShares MSCI South Korea ETF (EWY), which tracks South Korean shares, fell 1.9 percent. Investors were closely watching the summit as it could potentially impact trade negotiations between China and the U.S.

White House economic advisor Larry Kudlow told CNBC on Thursday both the U.S. and China are making “fantastic” progress in their negotiations. “I think we’re headed for a remarkable, historic deal.”

Treasury Secretary Steven Mnuchin said in a separate CNBC interview: “We have made a lot of progress,” but added that a deal “is not yet done.”

Their comments come after U.S. Trade Representative Robert Lighthizer testified in front of House members that China needed to do more than just buy more U.S. goods for the two countries to strike a permanent trade deal. But Lighthizer said after the testimony, according to The Wall Street Journal, that formal steps would be taken to abandon plans of raising tariffs on Chinese goods.

Stocks are off to a hot start for 2019 as worries over U.S.-China trade relations and fears of tighter monetary policy have decreased. The Dow and S&P 500 are both up more than 11 percent this year while the Nasdaq is up more than 13.5 percent.

Thomas Lee, founder and head of research at Fundstrat Global Advisors, said stocks should build on these gains this year.

“Investors will become increasingly bullish as we move through the year—hence, we expect “buy the dip” will support stocks,” Lee said in a note to clients. “As we have moved through the year, more investors are recognizing that downward revisions in ‘E’ matter much less than P/E.”

Shares of HP Inc. dropped 17.2 percent after the company posted quarterly revenue that missed expectations. HP Inc. also reported earnings per share that matched estimates.

WATCH: Trade deal or no deal, the U.S. and China are still fighting for global power

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