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Stocks Retire from Closing S&P 500 and Dow Records as US – China's Trade Talks Stagnated



Stocks opened Thursday from flat to lower as doubts grew over the prospects for the so-called first-phase US-China trade phase, a day after the Dow Jones Industrial Average and the S&P 500, each record high .

How are the main indices traded?

The Dow Jones Industrial Average

DJIA, -0.06%

lost 5 points or less than 0.1% to trade at 27 775, while the S&P 500 Index

SPX, -0.03%

fell 3 points, or 0.1%, at 3092. The Nasdaq Composite Index

COMP, -0.15%

fell 20 points, or 0.2%, to 8 461.

On Wednesday, the Dow rose 92.10 points or 0. 3% to finish at a record 27 783,59, while the S&P 500 gained a 2.2 point gain, or 0.1% to finish at 3,094.04 to mark the record finish. The Nasdaq Composite failed to record its own decline, falling 3.99 points or less than 0.1% to close at 8,482.10.

What is driving the market?

The prospect of a US-China trade agreement remains a major rallying factor that has pushed record highs in the US over the past five weeks.

"This morning, the stock markets are significantly lower as trade talks between the US and China have stagnated. There has been a huge amount of progress lately, but now it looks like the talks have been hit the road, "said David Madden, a market analyst at CMC Markets UK, in a note.

The Chinese Ministry of Commerce said that the US and China are having an "in-depth" discussion on the partial trade agreement, emphasizing that tariff cancellation is important for a deal.

The Wall Street Journal on Wednesday reported that talks between the US and China had hit the purchase of agricultural commodities, with Beijing agreeing to engage in a large number of text of the agreement, while President Donald Trump claims that China has agreed to buy $ 50 billion worth of products annually. News reports also highlighted a tariff dispute, with Beijing saying it urged existing tariffs to be repealed while the White House resisted.

In US political news, investors get rid of the first day of a public inquiry into the impeach house, which saw the incumbent ambassador to Ukraine testify that Trump asked about the state of Ukrainian investigations against former Vice President Joe Biden and alleged election day interference urges the President of Ukraine to initiate these studies.

Read: The stock market goes to record highs even as Trump's impeachment hearings enter a new phase – that's why

In the economic news, the original US unemployment benefit claims of 14,000 up to 225,000 in the week ended November. 9, near the five-month high and over 215,000 expected by economists surveyed by MarketWatch, but the data may be a seasonal anomaly. Separately, the US producer price index rose 0.4% in October compared to September, exceeding expectations of 0.3%. With the exception of volatile food and energy products, wholesale prices increased by 0.3% over the month. The 12-month wholesale inflation rate narrowed to a three-year low of 1.1% from 1.4%.

Federal Reserve Chairman Jerome Powell is scheduled to testify before the House Budget Committee at 10:00 AM Eastern. Appearing on Wednesday before the Joint Economic Committee, Powell reiterated that the Fed would have to see a significant change in the conditions for policy.

In addition to Powell, Fed speakers took the floor to comment, including Chicago Federation President Charles Evans and Fed Vice President. Richard Clarida at 9:10 AM Eastern Time. St. Louis Fed President James Bullard is scheduled to speak at 11:20 a.m., while New York State President John Williams is ready to offer remarks at noon.

Watch Stocks

Shares of Walmart Inc .

WMT, + 2.24%

rose 3.1% on Thursday after the retail giant and the Dow component, exceeding profit expectations for the third quarter and as sales of the same stores increased.

Dow Component Shares Cisco Systems Inc.

CSCO, -7.43%

dropped more than 6% after offering a disappointing prospect when it announced quarterly results after Wednesday's closing bell.

See: Cisco Confirms Concerns About "Wide" Slow Slowdown on Technology Costs

Investor activist Carl Icahn is pushing for a proposed merger of Xerox Holdings Corp.

XRX, + 1.68%

and HP Inc.

HPQ, + 2.23% .

Icahn holds a 10.6% stake in Xerox and told The Wall Street Journal on Wednesday that he also owns a 4.24% stake in HP, valued at approximately $ 1.2 billion, for which there was no information. Xerox shares rose 1.1%, while HP shares advanced 2.1%.

Stocks of Viacom Inc.

VIAB, + 2.04%

rose 0.5% early Thursday after the media conglomerate reported fourth-quarter fiscal earnings and sales that exceeded Wall Street expectations.

How do the other markets trade?

The yield on the 10-year note for the US Treasury

TMUBMUSD10Y, -3,33%

fell 3.7 basis points to 1.832% in weaker economic data outside Asia, adding to the slide 3.9 basis points on Wednesday, triggered by concerns about trade.

In the commodity markets the price of a barrel of crude oil from West Texas for delivery in December

CLZ19, + 0.81%

went up 36 cents, or 0.6% to $ 57.48, before government crude inventories until Comex delivery gold in December

GCZ19, + 0.42%

rose $ 6 or 0.4% to $ 1,469.50 an ounce, finding support as government bond yields plummeted.

The US dollar was virtually unchanged according to the US dollar ICE index

DXY, -0.04% .

In Asia, overnight stocks were mostly traded lower with Japanese Nikkei

NIK, -0.76%

inferior 0.8%, Hong Kong Hang Seng Index

HSI, -0.93%

0.9% decline and Chinese CSI 300

000300, + 0.15%

adding 0.2%. In Europe, stocks were trading mostly lower, such as the Stoxx Europe 600

SXXP, -0.17%

down 0.3%.


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