Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street drops as tariff deadline looms

Published 12/09/2019, 01:24 PM
Updated 12/09/2019, 01:24 PM
Wall Street drops as tariff deadline looms

Wall Street drops as tariff deadline looms

By Shreyashi Sanyal

(Reuters) - Wall Street's main indexes fell in afternoon trading on Monday, with investors keeping a close watch on U.S.-China trade relations as planned tariffs on Chinese imports kick in on Dec. 15.

Beijing and Washington are negotiating a first phase trade deal aimed at de-escalating tariff disputes but they continue to wrangle over key details.

Analysts said markets are still hoping for a delay in the deadline, while expecting more positive gestures from both sides, but a lack of fresh update on trade talks sapped risk appetite.

"There is optimism about the potential of a roll back or some positive news on trade that is keeping stocks where they are," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

"But as always it ultimately depends on what we get from President Donald Trump or China on what might be going on with the trade deal."

The latest data from China showed exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from trade tensions.

The S&P 500 came within striking distance of a record high hit two weeks ago. The three indexes are now less than 1% away from their all-time highs.

The Dow Jones Industrial Average (DJI) was down 75.84 points, or 0.27%, at 27,939.22, the S&P 500 (SPX) was down 4.02 points, or 0.13%, at 3,141.89.

The Nasdaq Composite (IXIC) was down 12.54 points, or 0.14%, at 8,643.99.

CMC Markets analyst David Madden said, "The common theme today is low volatility and small trading ranges but the uncertainty surrounding trade is hanging over equities."

Also in focus is the Federal Open Market Committee's two-day policy meeting, which starts on Tuesday.

3M Co (N:MMM) fell 0.7% after Citigroup (NYSE:C) cut its rating on the industrial conglomerate's shares.

Apple (NASDAQ:AAPL) suppliers Qorvo Inc (O:QRVO) and Skyworks Solutions Inc (O:SWKS) rose about 2% each, after Bank of America Merrill Lynch (NYSE:BAC) upgraded shares of both companies.

Merck & Co (N:MRK) dipped 0.2% after the drugmaker said it would buy cancer drug developer ArQule Inc (O:ARQL) for $2.7 billion in cash. Shares of ArQule doubled in value following the news.

Advancing issues outnumbered decliners by a 1.17-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.13-to-1 ratio on the Nasdaq.

The S&P index recorded 23 new 52-week highs and one new low, while the Nasdaq recorded 80 new highs and 44 new lows.

Latest comments

Mr. Pres doesn't want a fairly deal . That he want it US manufacturing growing up then impoverishment of China. To make America great again and against China. Tariff or other hurting actions will never removed until China have outrageous pain.
lol
Reuters posts articles like this one because they can not because they have anything reliable to report.
On 12/14/19 Trump will drop his threat to impose additional tariffs on China because he’ll say China has shown some positive movement in their trade position. Mark my words on this. Trump has been bluffing about this the entire time!
he has put tariffs on them already to include while at the table he added more on them. i think he will add the tariffs and use it as a political move for his election. he can't appear weak going into an election year
Yes I do remember last winter, conditions today are nothing like they were a year ago, but you raging commies keep trying to convince us that they are, knock off the false news and shenanigans and let the economy do its thing
Remember last winter? Will it repeat itself? Who knows, but after an ATH comes a sell-off.
sometime , not everytime
Market will be volatile until 15 th december
Reuters vs  Bloomberg, Put vs Call
China vs USA
I’ve been watching this morning’s impeachment hearings. As a registered independent (small i) voter, I have no dog in this fight & will reserve final judgment until the hearings have concluded. But in the meantine, Sreve Castor (Counsel for the Minority) comes across as dumber than a post. He could not answer any questions from the Ranking Counsel, because he couldn’t remember anything he that he’d just read in his opening remarks. Then an hour later when Ashley Callen (Counsel for the Minority & one of the few women given a role by the GOP) got to question Castor, he immediately hijacked her time saying he wanted to set the record straight about all the questions he dodged earlier or which he couldn’t recall the “right” answers to. His staff then fed him written comments as he talked. And the entire time Ms. Callen said “uh huh, uh huh, uh huh, uh huh.” In short, the GOP stripped Ms. Callen of most of her time & then she sat there like a bump on a log with 2 syllable responses.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.