Wall St dips as investors weigh G7 tax deal risk
By Shashank Nayar (Reuters) - The S&P 500 eased on Monday, although it remained 0.5% away from its all-time high, as a deal by the world's richest nations on a global minimum corporate tax overshadowed bets on a full economic reopening. The Group of Seven (G7) advanced economies agreed on Saturday to back a minimum global corporate tax rate of at least 15%, squeezing more money out of multinational companies such as Amazon.com and Google
By Shashank Nayar
(Reuters) - The S&P 500 eased on Monday, although it remained 0.5% away from its all-time high, as a deal by the world's richest nations on a global minimum corporate tax overshadowed bets on a full economic reopening.
The Group of Seven (G7) advanced economies agreed on Saturday to back a minimum global corporate tax rate of at least 15%, squeezing more money out of multinational companies such as Amazon.com and Google.
But analysts said immediate market implications would be minimal since the details remained to be negotiated over the coming months.
Shares of Apple Inc, Amazon.com Inc, Facebook Inc and Google-parent Alphabet Inc were trading flat to slightly lower, in line with the broader market's move.
"While it all sounds good, the road to implementation (of the tax deal) is full of rocks and potholes," said Ken Polcari, managing partner at Kace Capital Advisors. "I would not react by becoming a seller in any of these names on this headline just yet."
U.S. stocks ended higher on Friday after a tepid U.S. monthly jobs report relieved investors concerned about the Federal Reserve scaling back its massive stimulus program sooner than expected.
The benchmark S&P 500 is inches away from its record highs hit earlier in May as investors shift focus to May's consumer price data due on Thursday to assess inflationary patterns in the economy.
"There is no bearishness in the market, but the question among investors is - with all the optimism from economic reopening already been factored in, where the next push for growth would come from?" said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
Carnival Corp said it would restart its namesake cruise line trips from U.S. ports this summer, while Norwegian Cruise Line Holdings Ltd outlined a plan to add more trips from multiple U.S. ports. Their shares added 2.5% and 3.5%, lifting peer Royal Caribbean by 1.8%.
At 11:50 a.m. ET, the Dow Jones Industrial Average was down 131.48 points, or 0.38%, at 34,624.91 and the S&P 500 was down 13.04 points, or 0.31%, at 4,216.85. The Nasdaq Composite was up 5.89 points, or 0.04%, at 13,820.38.
Seven of the 11 major S&P sectors slipped. The defensive utilities, real estate and healthcare sectors were in the green.
Cinema operator AMC Entertainment added 18.8% after racking up a near 200% rise in the past two weeks, driven by retail investors. Other "meme stocks" including GameStop and U.S.-listed shares of BlackBerry rose 10.6% and 14.1%.
GameStop shares were the biggest boost to the S&P 600 small-cap index, which was up 0.6%.
U.S. regulators approved Biogen Inc's aducanumab as the first treatment to address an underlying cause of Alzheimer's disease. Its shares remained halted by noon.
Chipmakers lagged on concerns about prolonged COVID-19 curbs in Taiwan hitting production of semiconductors further. The Philadelphia semiconductor index dropped 1.1%.
Advancing issues outnumbered decliners by a 1.15-to-1 ratio on the NYSE and by a 1.69-to-1 ratio on the Nasdaq.
The S&P index recorded 54 new 52-week highs and no new low, while the Nasdaq recorded 124 new highs and 15 new lows.
(Reporting by Shashank Nayar in Bengaluru; Editing by Maju Samuel)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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
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.