You are here: Home » Reuters » News
Business Standard

Wall Street drops on trade woes, moderate retail sales data


By Medha Singh

(Reuters) - U.S. stock index futures dropped on Tuesday as investors were worried about a lack of progress in U.S.-trade talks and assessed U.S. sales data that showed moderate gains last month.

The and are still "very far apart" on resolving trade frictions, U.S. to said, as a second round of high-level talks were set to begin in

Adding to the trade woes, Mexico's minister said he does not expect to meet a deadline this Thursday to reach a new North American Free Trade Agreement that could be presented to the

U.S. sales increased a moderate 0.3 percent in April, compared with an upwardly revised 0.8 percent surge in March, as rising gasoline prices weighed on discretionary spending, the Commerce Department said.

However, the rise in core sales, which excluded automobiles, gasoline, building materials and food services, showed consumer spending appeared on track to accelerate after slowing sharply in the first quarter.

Following the data, benchmark yields hit 3.037 percent, a key breakout level, before gaining further to 3.043 percent, their highest since July 2011.

"It's a combination of less good from China trade situation, a bit of a seasonal miss on Home Depot and tick up in the yield on 10-year that conspires to be the story ... and unraveled some of that positive feeling we had yesterday," said Art Hogan, at in

"The (retail sales) data is impressive, the yield on the 10-year is reflective of that, and that we get further noise on 3 percent and that becomes an issue."

Shares of slipped 2.5 percent in premarket trading after the No.1 U.S. home missed Wall Street forecasts for sales at established stores as an unusually long winter hit demand for

Smaller rival was down 1.7 percent.

At 9:09 a.m. ET, Dow were down 147 points, or 0.59 percent. were down 14.5 points, or 0.53 percent and were down 58 points, or 0.83 percent.

Even oil prices, which have helped boost the stock market in recent days, touching a 3-1/2-year high, did not offer succor on the day.

Among stocks, dropped 7.0 percent after posting a disappointing quarterly forecast late on Monday.

dipped 0.9 percent after cut its rating to "neutral" on the automaker's shares.

rose 3.0 percent after the anti-virus maker's bullish 2020 forecast eased concerns over the impact of an

(Reporting by in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 18:56 IST