US Stocks Fall in Early Trade 12/05 09:43
Stocks wobbled between small gains and losses on Wall Street in early
trading Thursday as investors waited for the latest news on negotiations to end
the trade war between the U.S. and China.
NEW YORK (AP) -- Stocks wobbled between small gains and losses on Wall
Street in early trading Thursday as investors waited for the latest news on
negotiations to end the trade war between the U.S. and China.
The losses follow Wednesday's advance on a report that Washington and
Beijing could be on track for a trade deal before new tariffs are set to hit
some popular products, including smartphones, on Dec. 15. Investors received
mixed signals earlier this week, including President Donald Trump's statement
that he wouldn't mind waiting for a deal beyond the 2020 elections.
Existing tariffs have been a key sticking point in negotiations and China
has been calling for the U.S. to roll back some of them as part of the latest
push for a deal.
Health care stocks led the decline. Gilead fell 1.8% and Edwards
Lifesciences shed 2.7%. Retailers were also among the companies losing ground.
Costco fell 1.2%.
Technology stocks also slipped. The sector has much to gain, or lose, in
trade negotiations because many of the companies rely heavily on China for
sales and supplies.
Rising bond yields lifted banks. The sector relies on higher bond yields to
charge more lucrative interest on loans. The yield on the 10-year Treasury rose
to 1.81% from 1.78% late Wednesday.
KEEPING SCORE: The S&P 500 index fell 0.1% as of 10:25 a.m. Eastern time.
The Dow Jones Industrial Average fell 46 points, or 0.2%, to 27,600. The Nasdaq
fell 0.2%. The Russell 2000 index of smaller company stocks fell less than 0.1%.
European markets moved higher and Asian markets were mixed.
ECONOMY WATCH: Wall Street has been assessing disappointing economic data
this week in the lead-up to a highly anticipated jobs report.
Data released on Wednesday showed that the U.S. services sector, which makes
up the bulk of the economy, grew at a surprisingly slow pace. That does not
bode well as a gauge for the economy while the manufacturing sector continues
Payroll processer ADP, on Wednesday, reported that private employers added
far fewer jobs in November than economists expected. Job growth has been a
strong part of the economy and the report raises doubts ahead of the Labor
Department's more comprehensive update on Friday.
COCKPIT SHUFFLE: United Airlines held steady after it said CEO Oscar Munoz
is stepping down from his post and will become executive chairman. The airline
said that President J. Scott Kirby will be its new CEO.
Munoz led the company through a choppy period, and in 2017 gave up his bonus
after the forcible removal of a ticketed passenger led to widespread criticism.