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* Pinterest plummets after 2019 forecast disappoints
* Trade war will only make us stronger - Chinese media
* Indexes down: Dow up 0.05%, S&P off 0.10%, Nasdaq drops0.41% (Changes comment, updates prices)
By Amy Caren Daniel and Sruthi Shankar
May 17 (Reuters) - The S&P 500 were trading flat but was offsession lows on Friday as investors tracked trade headlinesafter China took a hard stance on its tariff war with the UnitedStates.
After falling as much as 0.76% earlier in the session, theS&P 500 erased some losses, with traders pointing to mediareports that the United States was close to a deal to removetariffs on steel and aluminum imports from Canada and Mexico. urn:newsml:reuters.com:*:nL2N22T0NF
However, all eyes were on the worsening rift in U.S.-Chinatrade talks, which has taken a toll on global financial markets.
The ruling Communist Party's People'sDaily wrote the tradewar will only make China stronger and will never bring thecountry to its knees. urn:newsml:reuters.com:*:nL4N22T0MJ
"Given the trend, people want to be optimistic and bothsides still want to get a deal and eventually might even get itdown, but the reality is that it is much more complicated thanthey anticipated," said Craig Birk, chief investment officer atPersonal Capital.
Beijing's higher tariffs on $60 billion worth of U.S.products will take effect on June 1, which could promptWashington to go ahead with tariffs on a further $300 billionworth of Chinese goods. urn:newsml:reuters.com:*:nL2N22P0A6
The two sides are expected to meet in China to resume talkssoon.
The S&P 500 has gained in the past three days after a hugesell-off on Monday, as some upbeat earnings reports and positiveeconomic data allayed worries about the U.S. economy taking ahit from the trade war.
However, uncertainty around trade led farm equipment makerDeere & Co DE.N to cut its full-year forecast, sending itsshares down 5.4%.
The drop in shares of Deere as well as Caterpillar IncCAT.N and 3M CoMMM.N pressured the tariff-sensitiveindustrial sector .SPLRCI , which was trading 0.3% lower.
Technology companies, including Apple IncAAPL.O andchipmakers, which rely on China for a large portion of theirrevenue were also hit by trade fears.
Tech stocks .SPLRCT fell 0.3%, with Apple down 0.5% afterNomura Instinet cut its price target on the stock, citingheadwinds from the tariff war.
Applied Materials IncAMAT.O gained 4.7% after the chipgear maker's upbeat third-quarter profit eased concerns aboutwaning chip demand. urn:newsml:reuters.com:*:nL4N22S4BW
At 11:52 a.m. ET the Dow Jones Industrial Average .DJI wasup 12.61 points, or 0.05%, at 25,875.29, the S&P 500 .SPX wasdown 2.93 points, or 0.10%, at 2,873.39 and the Nasdaq Composite .IXIC was down 32.55 points, or 0.41%, at 7,865.50.
Under Armour IncUAA.N rose 6.6% after JP Morgan upgradedthe sports wear maker to "overweight" from "neutral".
Online scrapbook company Pinterest IncPINS.N slumped12.0% after the recent Wall Street debutant forecast 2019revenue broadly in line with Wall Street targets. urn:newsml:reuters.com:*:nL4N22S4C1
Luckin Coffee Inc's shares LK.O , the Chinese challenger toStarbucks Corp SBUX.O , surged 35.8% in their market debut. urn:newsml:reuters.com:*:nL4N22T3C6
Declining issues outnumbered advancers for a 1.97-to-1 ratioon the NYSE and a 1.93-to-1 ratio on the Nasdaq.
The S&P index recorded 25 new 52-week highs and five newlows, while the Nasdaq recorded 48 new highs and 76 new lows. (Reporting by Amy Caren Daniel, Sruthi Shankar and ShreyashiSanyal in Bengaluru; Editing by Shounak Dasgupta and ArunKoyyur) ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.+1-646-223-8780; outside U.S. +91 80 6749 9250 ; ReutersMessaging: Amy.CarenDaniel.email@example.com;))