S&P 500, Dow take a breather on trade deal doubts

By Arjun Panchadar and Agamoni Ghosh (Reuters) - The S&P 500 and Dow Jones indexes stalled on Friday after a record run, as U.S.

Reuters November 09, 2019 01:07:44 IST
S&P 500, Dow take a breather on trade deal doubts

SP 500 Dow take a breather on trade deal doubts

By Arjun Panchadar and Agamoni Ghosh

(Reuters) - The S&P 500 and Dow Jones indexes stalled on Friday after a record run, as U.S. President Donald Trump contradicted reports that the United States and China would roll back existing tariffs.

However, the tech-heavy Nasdaq gained on the back of a rise in shares of Microsoft Corp and Qualcomm Inc .

The benchmark S&P 500 and blue-chip Dow had closed at all-time highs on Thursday after officials said both U.S. and China had agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed.

But Trump said on Friday he had not agreed to roll back the tariffs, although Beijing would like him to do so. The news sent all the three major U.S. stock indexes sharply lower, but later recovered.

"Let's not forget that in the past we have come so close to a trade agreement and at the last minute there has been a pullback," said Michael Geraghty, capital market strategist at Cornerstone Capital Group in New York.

"The president is very set in his way and the Chinese have their viewpoint too, so it seems it's going to take a bit longer for the trade deal to be nailed down."

Four of the 11 major S&P 500 sectors were trading lower, with the energy sector shedding 0.97%, making it the biggest decliner, as oil prices fell on Trump's comments before steadying. [O/R]

Still, the S&P 500 was on track for its fifth straight week of gains, while the Nasdaq was eyeing its sixth consecutive weekly rise, partly propelled by a rosy third-quarter earnings season.

Walt Disney Co gained 3.3% as its popular theme parks and a remake of "The Lion King" lifted earnings, and the company also spent less than it had projected on its online streaming service, Disney+.

Of the 446 S&P 500 companies that have reported results so far, nearly three quarters have beaten profit estimates, according to IBES data from Refinitiv. The numbers, to some extent, reflect significantly lowered analysts' forecasts.

At 1:03 p.m. ET the Dow Jones Industrial Average <.DJI> was down 33.83 points, or 0.12%, at 27,640.97, the S&P 500 <.SPX> was up 0.79 points, or 0.03%, at 3,085.97 and the Nasdaq Composite <.IXIC> was up 16.93 points, or 0.20%, at 8,451.44.

Dragging on the Dow were losses in shares of industrials 3M Co and Boeing Co .

Among other stocks, Gap Inc fell 7% after it said Chief Executive Officer Art Peck would leave the company, a surprise exit in the middle of a restructuring. The apparel retailer also slashed its full-year earnings forecast.

Energy drinks maker Monster Beverage Corp rose 3.6% after posting a better-than-expected third-quarter profit and announcing a $500 million share buyback plan.

Advancing issues outnumbered decliners for a 1.00-to-1 ratio on the NYSE and a 1.01-to-1 ratio on the Nasdaq.

The S&P index recorded 20 new 52-week highs and two new lows, while the Nasdaq recorded 56 new highs and 67 new lows.

(Reporting by Arjun Panchadar and Agamoni Ghosh in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.