S&P 500, Nasdaq slip on trade uncertainty; Boeing buoys Dow
By Lewis Krauskopf (Reuters) - The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing shares helped the Dow Jones Industrial Average eke out a slim gain.
By Lewis Krauskopf
(Reuters) - The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing shares helped the Dow Jones Industrial Average eke out a slim gain.
Investor hopes of a "phase one" trade deal have been a key factor supporting stocks recently, but Trump said on Saturday that the United States would only make a trade deal if it was the "right deal" for America, adding that the talks had moved more slowly than he would have liked.
Violence in Hong Kong during protests also cast a shadow on sentiment after the three major averages posted all-time closing highs on Friday, and the benchmark S&P 500 <.SPX> tallied its fifth week of gains in a row.
"You had negative headlines that were a reason for consolidation after five weeks in a row where stocks moved higher," said Willie Delwiche, investment strategist at Baird in Milwaukee.
"The biggest risk right now is excessive optimism," Delwiche said. "And so if we can have a few days of consolidation where it eases some of that, then that’s a healthy development for the market overall."
Michael Arone, chief investment strategist at State Street Global Advisors, said that "a lot of good news is priced into the stock market," including the Federal Reserve's interest-rate cuts, third-quarter earnings topping low expectations, signs of a bottoming of economic data, and enthusiasm about a potential resolution to trade tensions.
Investors will be watching for any trade commentary from Trump on Tuesday, when he is expected to speak at The Economic Club of New York.
The Dow Jones Industrial Average <.DJI> rose 10.25 points, or 0.04%, to 27,691.49, the S&P 500 <.SPX> lost 6.07 points, or 0.20%, to 3,087.01 and the Nasdaq Composite <.IXIC> dropped 11.04 points, or 0.13%, to 8,464.28.
Shares of Boeing Co
Boeing shares are the biggest weight in the 30-component, price-weighted Dow, helping the blue-chip index tally another record close on Monday.
Walgreens Boots Alliance Inc
Most of the S&P 500 sectors ended in the red, with utilities <.SPLRCU>, energy <.SPNY> and healthcare <.SPXHC> falling the most.
Investor attention will shift to economic data and testimony by Fed Chair Jerome Powell on the economic outlook later this week, while a handful of big companies, including Walmart Inc
The third-quarter corporate reporting season, which is drawing to a close, has been better than expected overall, but S&P 500 companies are still expected to have posted a 0.5% decline in earnings, according to Refinitiv data.
Declining issues outnumbered advancing ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored decliners.
The S&P 500 posted 19 new 52-week highs and one new low; the Nasdaq Composite recorded 64 new highs and 96 new lows.
About 5.5 billion shares changed hands in U.S. exchanges, below the 6.8 billion-share daily average over the last 20 sessions.
(Reporting by Lewis Krauskopf in New York; Additional reporting by Arjun Panchadar and Agamoni Ghosh in Bengaluru; Editing by Leslie Adler and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
U.S. home sales fall as tight supply boosts prices | Reuters
France, Germany to agree to NATO role against Islamic State - sources | Reuters
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
China's Xi says navy should become world class | Reuters
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.