Breaking News
0

Wall Street falls on China, NAFTA concerns

Stock MarketsJan 10, 2018 03:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The trading floor is seen on the final day of trading for the year at the New York Stock Exchange (NYSE) in Manhattan, New York

By Sinead Carew

NEW YORK (Reuters) - Wall Street's major stock indexes pared earlier losses on Wednesday while U.S. Treasury yields fell from their peak as investor skepticism grew about a report that China would slow purchases of U.S. government bonds.

Financial stocks were still the biggest percentage gainers by late afternoon, however, as investors reacted to the Bloomberg report on China, the world's biggest holder of U.S. Treasuries.

The S&P 500 pared some losses after falling as much as 0.6 percent after the report, which also pushed the dollar down.

"As the day wore on, Treasury yields started to move lower on the realization the story doesn't have any legs. That's definitely helped equities. There's no way on earth the Chinese stop buying U.S. Treasuries," said Robert Pavlik, chief investment strategist, SlateStone Wealth in New York.

The S&P also dipped on a Reuters report saying Canada is increasingly convinced President Donald Trump will soon announce the United States intends to pull out of the North American Free Trade Agreement. The report cited two unnamed government sources.

At 2:47 p.m. (1947 GMT), the Dow Jones Industrial Average (DJI) was down 30 points, or 0.12 percent, to 25,355.8, the S&P 500 (SPX) had lost 6.01 points, or 0.22 percent, to 2,745.28 and the Nasdaq Composite (IXIC) had dropped 25.29 points, or 0.35 percent, to 7,138.29.

The China report put the S&P and the Nasdaq on track to snap a six-day run of record closing highs as investors worried that the market was overdue for a correction.

"It's a reflection of investor weariness and awareness that the market has risen for four straight months without seeing a major pullback," said Pavlik. "They're on alert in case something develops."

The S&P financial index (SPSY) was last up 0.8 percent, helped by gains in Wells Fargo (N:WFC), Berkshire Hathaway (N:BRKa) and JPMorgan (N:JPM).

Banks and insurance companies often rise with bond yields as investors expect a profit boost from higher interest rates.

Rate-sensitive sectors such as utilities (SPLRCU) and real estate <.SPLRCREC> were the biggest percentage losers of the S&P's 11 major sectors.

The China report weakened the dollar (DXY), which was last down 0.2 percent, while safe-haven commodity gold jumped to its highest in four months.

Investors started the New year optimistic about global growth prospects and with high expectations for a strong U.S. quarterly earnings season which kicks off on Friday with reports from big banks.

Earnings for S&P 500 companies are expected to increase by 11.8 percent, with the biggest contribution from the energy sector, according to Thomson Reuters I/B/E/S.

Berkshire Hathaway (N:BRKb) rose 1.2 percent after the conglomerate promoted two top executives, cementing their status as the most likely successors to Warren Buffett.

Shares of Lennar Corp (N:LEN) gained 2 percent as No.2 U.S. homebuilder's orders and total revenue rose more than expected in the fourth quarter.

The Dow Jones Transport index (DJT), often seen as a gauge of the economy's health, pared its gains and was last up 0.1 percent after climbing as much as 0.7 percent following United Continental's (N:UAL) report of higher traffic for December.

Department store operator Kohl's (N:KSS) rose about 3.2 percent after two brokerages raised their price targets.

Declining issues outnumbered advancing ones on the NYSE by a 1.72-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored decliners.

The S&P 500 posted 74 new 52-week highs and seven new lows; the Nasdaq Composite recorded 90 new highs and 23 new lows.

Wall Street falls on China, NAFTA concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
WANDERLUST srt
WANDERLUST srt Jan 10, 2018 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah!! normalizing yield curve incoming!
Reply
0 0
Phil Goode
Phil Goode Jan 10, 2018 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Says who ? And why.r.r.r.r.Is it because:r.r.I) they are spending their excess FX on BaR projects - then the US couldn't care less and it would be good for USDr.r.ii) because they are going to appreciate their currency - then they are buggereedr.r.iii)because they are defending a falling currency due to capital flight.. - then they are buggered
Reply
0 0
Jan 10, 2018 9:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is running out of money:)
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email