Politics

US STOCKS-Wall Street falls as trade worries persist

(For a live blog on the U.S. stock market, click LIVE/ ortype LIVE/ in a news window.)

* Trade sensitive chipmakers, Boeing fall

* Amazon, Apple weigh the most on S&P and Nasdaq

* Mattel soars after posting surprise profit

* Indexes down: Dow 0.61 pct, S&P 0.49 pct, Nasdaq 0.64 pct (Updates to open)

By Medha Singh

Feb 8 (Reuters) - Technology shares pulled Wall Street loweron Friday, as skepticism over the United States and Chinareaching a trade deal before a looming deadline added toinvestor nerves over slowing global growth.

Another round of talks is set for next week in Beijing, butPresident Donald Trump on Thursday fanned worries when he saidhe did not plan to meet Chinese President Xi Jinping before theMarch 1 deadline set for reaching a trade pact. urn:newsml:reuters.com:*:nL1N2020Z6

If the two countries fail to reach an agreement by then,additional U.S. tariffs on Chinese imports will come into force.

The trade-sensitive industrials .SPLRCI shed 0.39 percentas planemaker Boeing CoBA.N lost 0.9 percent and also weighedon the blue-chip Dow index .DJI .

Chip stocks, which get a huge chunk of their revenue fromChina, also slipped. The Philadelphia chip index .SOX lost1.07 percent

"Investors are experiencing another hiccup in the tradetalks and with the March deadline approaching fast, they arebeing a tad cautious," said Andre Bakhos, managing director atNew Vines Capital LLC in Bernardsville, New Jersey.

"The market is reducing exposure in some of these big namesfor no other reason than to take some profits and remove somerisk until we find a better scenario with tariffs."

All the major S&P sectors were in the red with technologysector's .SPLRCT 0.50 percent decline, and the consumerdiscretionary sector's 0.83 percent fall, weighing the most.

Amazon.com Inc'sAMZN.O 2.38 percent drop, along withApple Inc's AAPL.O 0.5 percent decline, dragged on thebenchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC .

Trade tensions added to growth worries, which resurfaced onThursday after the European Union cut its economic growthforecasts and the Bank of England warned of Britain facing itsweakest economic growth in a decade. urn:newsml:reuters.com:*:nL5N2024YYurn:newsml:reuters.com:*:nL5N2023IE

However, the S&P 500 .SPX is 14.5 percent higher from the20-month lows it hit in December, spurred by a dovish FederalReserve, hopes of a U.S.-China trade deal and largely positivefourth-quarter earnings.

With earnings season crossing its halfway mark, 71 percentof the S&P 500 companies that have reported beat profitestimates, according to IBES data from Refinitiv.

But concerns remain about slowing earnings growth. Growthforecast for the current-quarter has dropped to 0.1 percent from5.3 percent at the start of the year.

At 9:53 a.m. ET, the Dow Jones Industrial Average .DJI wasdown 154.11 points, or 0.61 percent, at 25,015.42. The S&P 500 .SPX was down 13.16 points, or 0.49 percent, at 2,692.89 andthe Nasdaq Composite .IXIC was down 46.29 points, or 0.64percent, at 7,242.06.

Coty IncCOTY.N jumped 26.63 percent - the most on the S&P500 - after the cosmetics maker reported better-than-expectedquarterly results. urn:newsml:reuters.com:*:nL3N203275

Mattel IncMAT.O gained 26 percent after the toymakerposted a surprise quarterly profit as it benefited from amakeover of its iconic Barbie doll. urn:newsml:reuters.com:*:nL3N2023TR

Declining issues outnumbered advancers for a 1.60-to-1 ratioon the NYSE and for a 1.47-to-1 ratio on the Nasdaq.

The S&P index recorded 10 new 52-week highs and no new lows,while the Nasdaq recorded 10 new highs and 15 new lows. (Reporting by Medha Singh and Amy Caren Daniel in Bengaluru;Editing by Sriraj Kalluvila) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,outside U.S. +91 80 6749 1130; Reuters Messaging:medha.singh.thomsonreuters.com@reuters.net))


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

In This Story

AAPL

Other Topics

World Markets Stocks US Markets

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More