Wall Street falls as investors cautious on trade; Intel slides

Traders work on the floor at the New York Stock Exchange (NYSE) in New York. ― Reuters pic
Traders work on the floor at the New York Stock Exchange (NYSE) in New York. ― Reuters pic

NEW YORK, May 9 ― The benchmark S&P 500 fell yesterday for the third day in a row as investors remained cautious about the latest developments on US- trade talks even after hopeful comments from the White House regarding an eventual agreement.

A late slide in shares of Intel Corp contributed to losses in the last half-hour of trading. Shares of the chipmaker fell 2.5 per cent after the company’s outlook during its investor day presentation disappointed.

had edged higher for much of the session after White House spokeswoman Sarah Sanders said that the United States had received an indication from Beijing that China wants to make a trade deal. China’s lead negotiator, Vice Premier Liu He, is due to visit Washington today and tomorrow.

Still, the US government said in its official journal that it would raise tariffs on US$200 billion (RM829 billion) worth of goods to 25 per cent tomorrow. China’s commerce ministry later said it would have to take retaliatory measures if US tariffs were raised.

The mixed tone of trade developments made it difficult for to sustain their rally, investors said.

“The last 30 minutes lets you know that people are still leaning bearish mid-week,” said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

Even as the S&P 500 rose in the afternoon, defensive sectors such as real estate and healthcare were among the index’s top gainers. The trade-sensitive industrial sector ended little changed, while Intel’s decline dragged down technology shares.

“It’s consistent with people being unsure about what’s actually going to come out of Washington this week,” said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta.

The Dow Jones Industrial Average rose 2.24 points, or 0.01 per cent, to 25,967.33, the S&P 500 lost 4.63 points, or 0.16 per cent, to 2,879.42 and the Nasdaq Composite dropped 20.44 points, or 0.26 per cent, to 7,943.32.

The benchmark S&P 500 is now 2.5 per cent below its record high of 2,954.13 hit last week.

Shares of Walt Disney Co rose 1.2 per cent ahead of its quarterly results. Disney was the top boost to the S&P 500.

Disney shares were last up 0.8 per cent in aftermarket trading.

McKesson Corp shares climbed 4.8 per cent after the drug distributor’s quarterly results eased concerns about pricing pressures and costs related to opioid-related litigation.

Conversely, TripAdvisor Inc shares tumbled 11.4 per cent, the most among S&P 500 companies, after the online travel company’s quarterly revenue missed analysts’ estimates.

With earnings season entering its final stretch, first-quarter profits are now seen rising 1.2 per cent, a sharp improvement from the 2.3 per cent decline expected at the start of the season.

Of the 426 S&P companies that have reported so far, about 75 per cent have beaten profit estimates, according to Refinitiv data.

Declining issues outnumbered advancing ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favoured decliners.

The S&P 500 posted five new 52-week highs and seven new lows; the Nasdaq Composite recorded 45 new highs and 67 new lows.

Volume on US exchanges was 7 billion shares, compared to the 6.74 billion average for the full session over the last 20 trading days. ― Reuters

Source: The Malay Mail Online

Leave a Reply

Your email address will not be published. Required fields are marked as *

Time limit is exhausted. Please reload CAPTCHA.