U.S. stocks turned lower Tuesday as investors digested a new round of posturing on the US-China trade standoff even amid more signs of growing global economic stimulus
The Dow Jones Industrial Average
fell 30 points, or 0.1%, to 26,032 and the S & P 500 Index
lost 3 points, or 0.1%, at 2,883. The Nasdaq Composite Index
shed 7 points to 7,815
At the session highs, the Dow had risen 0.7%, the Nasdaq rallied 1.1%
Before Tuesday's retreat, the Dow has risen for six straight sessions, the longest since eight-day run that ended on May 14, 2018, according to Dow Jones Market Data.
Wall Street got a bump earlier in the session after Chinese authorities backed special-purpose bond issues by local governments. The move is an effort to accelerate the financing of major projects through bond issuance, which is largely used for infrastructure investment, People's Bank of China said in a joint statement with other government agencies, The Wall Street Journal reported
But unresolved China's foreign ministry on Tuesday said it would respond firmly if the US
The report follows comments from President Donald Trump on Monday that further tariffs on Chinese imports would take effect if the two countries did not reach a deal at a meeting of Group of 20
For now, Chinese officials have not confirmed that President Xi will meet with President Trump at the meeting, which will be held June 28-29 even though Trump said that if Xi does not meet with him, additional charges will be placed on Chinese goods. U.S. Pat. Commerce Secretary Wilbur Ross said in an interview on CNBC that he believes a deal will be finally reached, but warned investors not to expect a quick resolution
The National Federation of Independent Business said its Small Business Optimism Index posted a May reading of 105, up 1.5 points from April.
The prices of wholesale goods increased 0.1% in May from April, down from 0.2% in the previous month, underscoring the lack of inflation pressures in the U.S. economy, according to the producer-price index data. The increase in wholesale prices over the past year, meanwhile, slowed down to 1.8% from 2.2% in April,
What are analysts saying
China's move to add more stimulus "is a sign the pivot is not just a US central bank phenomenon and that there is a stimulus in ramping up globally, "said Eric Wiegand, senior portfolio manager at U.S. Bank.
"There's a lateral move with a positive modest bias," right now, he said. "We're still range bound. It will not be surprising to see more volatility around the G-20 meeting, as investors ask 'will they or they will not they' 'make a deal, he added.
What stocks are in focus? -equity giant Apollo Global Management LLC
APO, + 0.27%
will acquire the online photo sharing company Shutterfly Inc.
SFLY, + 0.94%
in an all-cash deal worth $ 51 a share, valuing the company at $ 2.1 billion. Shares of Apollo Global fell 0.2% and Shutterfly stock rose 0.5%.
Shares of CVS Health Corp .
fell 2.1% after the New York Post reported that a federal judge appears to be nearing a surprise move to block CVS '$ 69 billion acquisition of Aetna, completed last year.
Shares of H & R Block Inc .
HRB, + 3.12%
rose 2.9% after the tax preparation services company reported fiscal fourth-quarter profit and revenue that beat expectations, boosted its dividend and announced the acquisition of Wave Financial Inc. -business financial solutions platform
Broadcom Inc. .
AVGO, + 1.17%
shares gained 0.7% after the company announced a two-year deal with Apple Inc. .
AAPL, + 1.16%
to provide components.
Shares of Chico's FAS Inc. .
CHS, + 8.21%
jumped 11% after the women's apparel retailer reported disappointing same-store sales growth for the first quarter, but beat earnings and revenue that topped expectations
Beyond Meat Inc. .
stock sank 22% after J.P. Morgan analyst Ken Goldman cut his rating on the stock from overweight to neutral, citing valuation concerns. The stock has risen 265% since its May 3 Initial Public Offering.
Shares of JetBlue Airways Corp .
JBLU, + 4.60%
rallied 4.3% after Citi analyst Kevin Crissey published a bullish note on the
Stocks in Asia were in rally mode, with China's Shanghai Composite Index surging by 2.6%, Hong Kong's Hang Seng Index adding 0.8% and Japan's Nikkei 225 rising 0.3%.
In commodities markets, crude oil
CLN19, + 0.19%
was pressured, while the price of gold
GCN19, + 0.11%
settled higher and the U.S. dollar
was virtually unchanged
-William Watts has contributed to this report