Major US stock indices fell slightly amid fears that a partial US deal with China, which US President Trump announced on Friday, could break.
Pressure on the market was also exerted by stocks of energy companies amid falling oil prices by more than 2%, which, according to some analysts, is associated with weakening hopes for a trade deal between the US and China.
Bloomberg said this morning that informed sources are reporting that Chinese officials are reluctant to sign the “first phase” of the deal, announced on Friday by the US president, without further discussion. According to them, at the end of this month, China may send a delegation led by Deputy Prime Minister Liu He to agree on details before President Xi Jinping agrees to sign a partial deal. Beijing also wants Washington to also cancel the planned tariff increase in December in addition to the planned increase this week.
Meanwhile, US Treasury Secretary Stephen Mnuchin told CNBC today that if the US does not enter into a trade deal with China before December 15, they will introduce tariffs on Chinese goods, but added that he hopes for a deal. According to him, the parties reached a fundamental agreement in principle, but there remain a number of issues that still need to be worked out.
Investors are also preparing for the start of the corporate reporting season for the third quarter, which starts on Tuesday with the publication of the results of the largest banks - Citigroup (C), Goldman Sachs (GS), J.P. Morgan Chase (JPM) and Wells Fargo (WFC). According to FactSet, analysts expect S&P 500 earnings to fall 4.6% in the third quarter from the same period last year.
DOW components completed trading mixed (17 in the red, 13 in the red). Outsiders were shares of Cisco Systems, Inc. (CSCO; -1.18%). The biggest gainers were 3M Company shares (MMM .; + 1.45%).
All S&P sectors recorded a decline. The conglomerate sector showed the largest decline (-1.1%).
At the time of closing:
Dow 26,786.95 -29.64 -0.11%
S&P 500 2,966.18 -4.09 -0.14%
Nasdaq 100 8,048.65 -8.39 -0.10%
Analysts at TD Securities are expecting a 3.0% y/y outcome for China's CPI in September.
U.S. stock-index futures fell on Monday as hopes of a quick resolution to the U.S.-China trade dispute were dashed by Bloomberg’s report that China wanted more talks before signing the “phase one” trade deal, announced by President Donald Trump on Friday.
Today's Change, points
Today's Change, %
(company / ticker / price / change ($/%) / volume)
ALTRIA GROUP INC.
Amazon.com Inc., NASDAQ
Cisco Systems Inc
Citigroup Inc., NYSE
Deere & Company, NYSE
Exxon Mobil Corp
Ford Motor Co.
Freeport-McMoRan Copper & Gold Inc., NYSE
General Electric Co
Home Depot Inc
International Business Machines Co...
Johnson & Johnson
JPMorgan Chase and Co
Merck & Co Inc
Procter & Gamble Co
Tesla Motors, Inc., NASDAQ
Twitter, Inc., NYSE
UnitedHealth Group Inc
Verizon Communications Inc
Wal-Mart Stores Inc
Walt Disney Co
Yandex N.V., NASDAQ
McDonald's (MCD) downgraded to Neutral from Buy at Kalinowski
NIKE (NKE) upgraded to Neutral from Underperform at BofA/Merrill; target $98
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