Wall St. falls as health, tech shares drag, tariff deadline looms

By Lewis Krauskopf (Reuters) - U.S.

Reuters December 10, 2019 02:05:44 IST
Wall St. falls as health, tech shares drag, tariff deadline looms

Wall St falls as health tech shares drag tariff deadline looms

By Lewis Krauskopf

(Reuters) - U.S. stocks pulled back on Monday from near record levels, dragged lower by healthcare and technology shares, as investors braced for a busy week of political and economic news including a potential turning point in the U.S.-China trade dispute.

Wall Street is focussed on Dec. 15, when the next round of U.S. tariffs on Chinese imports is scheduled to take effect. China said on Monday that it hoped to make a trade deal with the United States as soon as possible.

Investor hopes of at least an initial U.S.-China agreement has helped pushed major stock indexes to record highs, with the benchmark S&P 500 <.SPX> hovering about 0.5% below its all-time high.

“It’s not uncommon for stocks to pause, given where they are, in advance of some news,” said Willie Delwiche, investment strategist at Baird in Milwaukee.

“We get the chance to see whether or not the rally we have had in U.S. stocks is warranted from a fundamental perspective and whether or not we are still moving in the right direction,” Delwiche said.

Aside from U.S.-China trade developments, investors will focus this week on the U.S. Federal Reserve's policy meeting, an election in the United Kingdom, and potential agreement related to a North American trade pact.

The Dow Jones Industrial Average <.DJI> fell 83.53 points, or 0.3%, to 27,931.53, the S&P 500 <.SPX> lost 7.06 points, or 0.22%, to 3,138.85 and the Nasdaq Composite <.IXIC> dropped 22.37 points, or 0.26%, to 8,634.16.

Most of the S&P 500 sectors were lower, with healthcare <.SPXHC> and tech <.SPLRCT> weighing the most on the index.

In company news, Merck & Co said it would buy cancer drug developer ArQule Inc for $2.7 billion, prompting shares of ArQule to double in value. Merck shares were little changed.

Shares of industrial conglomerate 3M Co dropped 0.7% after Citigroup cut its rating on the stock to "neutral" from "buy."

Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favoured decliners.

The S&P 500 posted 23 new 52-week highs and 1 new low; the Nasdaq Composite recorded 83 new highs and 49 new lows.

(Additional reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Anil D'Silvan and Steve Orlofsky)

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.