Stocks move lower as investors wait for trade updates
Tuesday, 25 June 2019 NEW YORK (AP) — U.S. stocks moved lower in early trading on Wall Street Tuesday as investors headed for more defensive holdings and watched for updates on trade negotiations between the U.S. and China.
Investors are also waiting for a speech by Fed Chairman Jerome Powell later Tuesday for any signal on the direction of interest rates.
Banks were among the biggest losers as bond prices rose and yields fell. Lower bond yields hurt a bank's ability to charge higher interest on loans. The higher bond prices are also a sign that investors remain concerned about a slowdown in economic growth and are favoring seemingly safer holdings.
Bank of America fell 1.3% and Wells Fargo fell 1.5%.
Communications and internet stocks also fell, along with industrial and technology companies.
A 27% surge from Botox maker Allergan held up health care stocks. The company is being bought by drug developer AbbVie. The sector was the clear winner in early trading. Real estate was also gaining.
Consumer product makers, normally considered a safe-play holding, swayed between small gains and losses.
KEEPING SCORE: The S&P 500 index fell 0.2% as of 10:05 a.m. Eastern time. The Dow Jones Industrial Average fell 48 points, or 0.2%, to 26,681. The Nasdaq composite 0.3%.
WHERE WE STAND: Investors are essentially taking a step back after three weeks of gains while they wait for direction. Presidents Donald Trump and Xi Jinping will meet this week at the Group of 20 meeting of major economies in Japan. The world's two largest economies spent much of the current quarter escalating their trade war and giving Wall Street jitters over prospects for economic growth.
Wall Street is hoping for the U.S. and China to at least find a path toward an eventual resolution to the trade war.
We're not out of the woods on trade just yet. Late Wednesday, it was reported that a potential truce in U.S.-China talks that could lead to the avoidance of new tariffs when President Trump and President Xi meet during G-20. However, the Wall Street Journal reported Thursday that Xi could want some...