Wall St ends four-day rally as economic outlook, corporate forecasts sour
By Stephen Culp NEW YORK (Reuters) - Wall Street ended its four-day rally on Tuesday as a gloomy global economic growth outlook and disappointing company forecasts dampened investor spirits at the height of fourth-quarter reporting season. All three major U.S
By Stephen Culp
NEW YORK (Reuters) - Wall Street ended its four-day rally on Tuesday as a gloomy global economic growth outlook and disappointing company forecasts dampened investor spirits at the height of fourth-quarter reporting season.
All three major U.S. stock indexes extended their losses after the Financial Times reported the Trump administration rejected an offer from China for preparatory talks ahead of next week's high-level trade negotiations.
The International Monetary Fund trimmed its 2019 global economic growth estimates on Monday, the same day data from China confirmed the country's slowest economic growth rate in 28 years.
"There's so much in the background - trade, government shutdown, earnings season - you're going to have these big swings in the markets based on the latest data," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"(Investors) are getting more bearish and less optimistic about the outlook," Nolte added. "We had a momentum low on Christmas Eve and I think we'll wind up testing it over the next couple months or so."
The downbeat China news pulled chipmakers lower, with the Philadelphia SE Semiconductor index <.SOX> falling 3.1 percent.
Each of the FAANG momentum stocks, a group which includes Facebook Inc
Fears of a slowdown in corporate profits were exacerbated as companies posting fourth-quarter results provided disappointing forward-looking projections.
Johnson & Johnson
Shares of Stanley Black & Decker Inc
The Dow Jones Industrial Average <.DJI> fell 398.96 points, or 1.61 percent, to 24,307.39, the S&P 500 <.SPX> lost 45.21 points, or 1.69 percent, to 2,625.5 and the Nasdaq Composite <.IXIC> dropped 148.39 points, or 2.07 percent, to 7,008.84.
All 11 major sectors of the S&P 500 were in the red, with the largest percentage losses coming from industrials <.SPLRCI>, communications services <.SPLRCL> and tech <.SPLRCT>.
With just over 12 percent of S&P 500 companies having reported thus far, 78.7 percent of have beat Street expectations. Analysts expect S&P 500 fourth quarter earnings growth of 14.1 percent, down from 20.1 percent on Oct. 1, according to Refinitiv data.
Oilfield services company Halliburton Co
Travelers Cos Inc
Amid the government shutdown-related dearth of U.S. economic data, a report from the National Association of Realtors showed sales of existing homes in the United States fell in December to their lowest level in three years.
The PHLX Housing index <.HGX> was down 1.9 percent.
Declining issues outnumbered advancing ones on the NYSE by a 3.83-to-1 ratio; on Nasdaq, a 3.14-to-1 ratio favoured decliners.
The S&P 500 posted 3 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 18 new highs and 26 new lows.
(Reporting by Stephen Culp; Editing by Nick Zieminski)
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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.