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US STOCKS-Wall St slips as losses in communication services shares weigh

Credit: REUTERS/Brendan McDermid

The S&P 500 edged lower in choppy trading on Monday as losses in shares of communication services companies eclipsed optimism on a coronavirus relief deal before the Nov. 3 presidential election.

By Medha Singh and Shivani Kumaresan

Oct 19 (Reuters) - The S&P 500 edged lower in choppy trading on Monday as losses in shares of communication services companies eclipsed optimism on a coronavirus relief deal before the Nov. 3 presidential election.

U.S. stocks had opened higher after House Speaker Nancy Pelosi said she was optimistic legislation could be pushed through before the election, but acknowledged an agreement would have to come by Tuesday for that to happen.

Last week the White House proposed a $1.8 trillion stimulus package to help Americans struggling with the economic ravages of the coronavirus pandemic, but Pelosi said the offer fell short in a range of areas and stuck to her demand for $2.2 trillion in aid.

"It's just the general volatility here. I wouldn't be surprised to see this bouncing around all day," said Tony Bedikian, head of global markets at Citizens Bank.

"The headlines around stimulus talks are going to be the primary driver for markets this week."

Wall Street's fear gauge .VIX rose for a sixth straight session as election campaigns kicked into high gear, with early voting starting in Florida, a battleground state that could decide the presidential election.

President Donald Trump and his Democratic challenger Joe Biden will debate for a final time on Thursday.

The communication services index .SPLRCL dropped about 1%, with all major S&P sectors trading lower.

At 11:16 a.m. ET, the Dow Jones Industrial Average .DJI was down 44.35 points, or 0.16%, at 28,561.96, the S&P 500 .SPX was down 5.65 points, or 0.16%, at 3,478.16. The Nasdaq Composite .IXIC was up 1.41 points, or 0.01%, at 11,672.97.

After the financial sector set a mixed tone to the start of the third-quarter earnings season, investors will look to results from about 91 S&P 500 companies this week including International Business Machines Corp IBM.N and Netflix Inc NFLX.O.

Oilfield services provider Halliburton Co HAL.N posted a fourth consecutive quarterly loss as this year's slump in oil prices due to the COVID-19 pandemic hit demand for its services. Its shares, however, rose about 1%.

ConocoPhillips COP.N slipped 1.8% as it agreed to buy U.S. shale oil producer Concho Resources Inc CXO.N for $9.7 billion as the energy sector continued to consolidate. Concho fell 1.1%.

Chipmaker Microchip Technology Inc MCHP.O gained about 2.6% after Morgan Stanley upgraded the stock to "overweight".

Advancing issues outnumbered decliners by a 1.43-to-1 ratio on the NYSE and by a 1.37-to-1 ratio on the Nasdaq.

The S&P index recorded 25 new 52-week highs and one new low, while the Nasdaq recorded 81 new highs and 17 new lows.

(Reporting by Medha Singh and Shivani Kumaresan in Bengaluru; Editing by Shounak Dasgupta and Anil D'Silva)

((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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