US Stocks Mixed on Trade, Economy 09/23 10:06
U.S. stocks were mixed in early trading on Monday as investors pulled back a
bit amid worries about the trade war and economic growth.
NEW YORK (AP) -- U.S. stocks were mixed in early trading on Monday as
investors pulled back a bit amid worries about the trade war and economic
Health care, communications and bank stocks dipped, with health insurer
UnitedHealth falling 1.4% and AT&T shedding 1%.
Higher bond prices pushed down yields on 10-year Treasury notes to 1.68%
from 1.75% late Friday. The lower yields weighed on bank stocks. Banks rely on
bond yields to set lucrative interest rates on loans.
Makers of consumer products, including Procter & Gamble and Pepsico, made
gains in the early going. Utilities swung between small gains and losses.
Investors typically shift to both those sectors and bonds when they are seeking
safer places to put their money amid worries about economic growth.
Technology stocks also held up well and helped offset some of the health
care and bank declines. Apple did most of the heavy lifting with a 0.5% gain,
though chipmaker Nvidia rose 1.4%.
Investors are preparing for the start of the next round of corporate
earnings and several key companies this week could provide a clearer picture of
the U.S.-China trade war's ongoing impact. Nike, which could be a gauge of the
trade war's effect on shoemakers and retailers, will report fiscal first
quarter results on Tuesday. Technology company Micron will report its fiscal
fourth quarter results on Thursday.
KEEPING SCORE: The S&P 500 fell 0.1% as of 10 a.m. Eastern time. The Dow
Jones Industrial Average shed 48 points, or 0.2%, to 26,887. The Nasdaq fell
OVERSEAS: Stocks in Europe fell broadly as Germany's economy contracted to
its lowest level in nearly seven years, according to IHS Markit. Germany is
Europe's largest economy and often acts as a gauge for the continent's economic
health. The latest data adds to worries that Europe is facing a slowdown in
Asian stocks edged lower.
MARKET WORRIES: Stocks are coming off of their first week of losses after
three straight gains and investors are keeping a close watch on the United
Nations General Assembly this week.
Oil prices and the energy sector could experience more volatility as
President Donald Trump seeks a coalition to confront Iran after the U.S. blamed
it for last week's strike on a Saudi Arabian oil facility.
Prospects for a trade war resolution seem to have once again cooled
following comments by Trump that he doesn't necessarily need to make a deal
before the next U.S. elections in 2020. Chinese officials canceled a planned
trip to farms in Montana and Nebraska, an action that raised concerns of yet
another halt in trade negotiations.
U.S. and Chinese officials are expected to meet in October to restart trade
THINLY STOCKED: E-commerce company Overstock.com fell 12.6% after the
company cut its financial forecast partly because tariffs have increased the
costs of goods from China. It also named Jonathan Johnson as its new CEO. He
has been acting CEO since August when Patrick Byrne resigned.