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Wall Street falls as trade worries persist

Reuters 

By Medha Singh

(Reuters) - Technology shares pulled Wall Street lower on Friday, as skepticism over the and reaching a trade deal before a looming deadline added to investor nerves over slowing global growth.

Another round of talks is set for next week in Beijing, but on Thursday fanned worries when he said he did not plan to meet Chinese before the March 1 deadline set for reaching a trade pact.

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 shed 0.39 percent as planemaker lost 0.9 percent and also weighed on the blue-chip Dow index.

Chip stocks, which get a huge chunk of their revenue from China, also slipped. The chip index lost 1.07 percent

"Investors are experiencing another hiccup in the trade talks and with the March deadline approaching fast, they are being a tad cautious," said Andre Bakhos, at in Bernardsville,

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

All the S&P sectors were in the red with technology sector's 0.50 percent decline, and the consumer discretionary sector's 0.83 percent fall, weighing the most.

Amazon.com Inc's 2.38 percent drop, along with Apple Inc's 0.5 percent decline, dragged on the benchmark S&P 500 and the tech-heavy Nasdaq.

Trade tensions added to growth worries, which resurfaced on Thursday after the cut its economic growth forecasts and the warned of Britain facing its weakest economic growth in a decade.

However, the S&P 500 is 14.5 percent higher from the 20-month lows it hit in December, spurred by a dovish Federal Reserve, hopes of a U.S.-trade deal and largely positive fourth-quarter earnings.

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

But concerns remain about slowing earnings growth. Growth forecast for the current-quarter has dropped to 0.1 percent from 5.3 percent at the start of the year.

At 9:53 a.m. ET, the was down 154.11 points, or 0.61 percent, at 25,015.42. The S&P 500 was down 13.16 points, or 0.49 percent, at 2,692.89 and the was down 46.29 points, or 0.64 percent, at 7,242.06.

jumped 26.63 percent - the most on the S&P 500 - after the reported better-than-expected quarterly results.

gained 26 percent after the toymaker posted a surprise quarterly profit as it benefited from a makeover of its iconic Barbie doll.

Declining issues outnumbered advancers for a 1.60-to-1 ratio on 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 and in Bengaluru; Editing by Sriraj Kalluvila)

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

First Published: Fri, February 08 2019. 21:02 IST
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