Wall Street flat as tech gains soothe tariff nerves

By Amy Caren Daniel (Reuters) - U.S. stocks were flat on Tuesday as technology shares recovered from their session lows, helping calm nerves that were triggered by President Donald Trump's latest tariff threat. Trump said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent at the start of 2019

Reuters November 28, 2018 00:05:38 IST
Wall Street flat as tech gains soothe tariff nerves

Wall Street flat as tech gains soothe tariff nerves

By Amy Caren Daniel

(Reuters) - U.S. stocks were flat on Tuesday as technology shares recovered from their session lows, helping calm nerves that were triggered by President Donald Trump's latest tariff threat.

Trump said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent at the start of 2019.

Trump is due to meet Chinese President Xi Jinping at the G20 Summit in Buenos Aires this week, but his latest comments have given little hope about the two countries resolving their trade dispute, which has battered financial markets this year.

The trade-sensitive industrial sector fell 0.76 percent, with Boeing Co, the single largest U.S. exporter to China, down 0.3 percent and Caterpillar Inc 0.9 percent.

"Tariff issues are the biggest factor in the markets, and will continue to be for a while, especially, given the meeting on Friday," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas

Apple Inc was off 0.4 percent. Its shares had fallen as much as 2.1 percent earlier in the session after Trump said tariffs could be placed on the company's laptops and iPhones imported from China.

Philadelphia SE Semiconductor index rose 0.90 percent, reversing earlier losses. Maxim Integrated led the gains with a 5.5 percent rise on news that it was set to join the S&P 500.

The recovery was also helped by a 1.5 percent rise in Netflix Inc and a 0.5 percent gain in Amazon.com Inc.

"A lot of these bounces you see are from significant oversold conditions," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

At 11:56 a.m. EDT the Dow Jones Industrial Average was down 30.01 points, or 0.12 percent, at 24,610.23, the S&P 500 was up 2.15 points, or 0.08 percent, at 2,675.60 and the Nasdaq Composite was up 9.06 points, or 0.13 percent, at 7,090.92.

Federal Reserve Vice Chairman Richard Clarida said the central bank should continue to gradually raise interest rates, but it is "especially important" to closely monitor new economic data as monetary policy is getting close to a neutral stance.

Fed Chairman Jerome Powell is scheduled to speak on Wednesday and his commentary will be closely watched for further clues on the path of interest rate hikes and the health of the economy in the face of rising trade tensions.

United Technologies Corp tumbled 5.9 percent, the most on the benchmark S&P 500 index, after its plan to split into three companies failed to impress investors.

Declining issues outnumbered advancers for a 1.52-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.47-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and four new lows, while the Nasdaq recorded 13 new highs and 91 new lows.

(Reporting by Amy Caren Daniel in Bengaluru; Editing by Arun Koyyur and Anil D'Silva)

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

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