US Stocks Wobble in Early Trade 12/09 10:16
U.S. stocks wobbled between small gains and losses in early trading Monday
as investors waited for the latest updates about trade negotiations and the
NEW YORK (AP) -- U.S. stocks wobbled between small gains and losses in early
trading Monday as investors waited for the latest updates about trade
negotiations and the economy.
Wall Street is particularly focused on developments in the trade war ahead
of a new round of tariffs on $160 billion of Chinese imports due to take effect
on Sunday. That would raise prices on key products, including cell phones and
laptops, and threaten to affect consumers.
A Chinese official said Monday that the nation wants a prompt settlement,
but gave no details on progress toward a potential deal. China made a
conciliatory gesture last week when it said it would waive tariffs on American
soybeans and pork.
Gains from communications companies were offset by losses from energy and
health care stocks. Charter Communications rose 1% and Marathon Petroleum fell
The yield on the 10-year Treasury fell to 1.82% from 1.84% late Friday,
though banks held steady.
Several old-guard pharmaceutical companies made moves to buy younger
biotechnology companies. Merck slipped less than 1% after announcing the buyout
of ArQule and Sanofi also slid less than 1% after saying it will by Synthorx.
KEEPING SCORE: The S&P 500 index rose 0.1% as of 10:03 a.m. Eastern time.
The Dow Jones Industrial Average fell 24 points, or 0.1%, to 27,990. The Nasdaq
rose 0.2%. The Russell 2000 index of smaller company stocks rose slightly.
European markets edged lower and Asian markets rose.
WEEK AHEAD: Wall Street is in for a busy week of economic reports
culminating in a key update on whether Americans are still spending at a
Investors will get a revised report on worker productivity for the
July-September quarter on Tuesday. Data released in November showed a decline
for the first time since late 2015.
On Wednesday the government will release its November report for consumer
prices, which have been rising at a modest rate this year. A gauge on producer
prices will be released on Thursday.
The Commerce Department's report on retail sales coming up Friday is
possibly the most important update this week. The economy has been propped up
in part by solid spending and job growth.
FED WATCH: The Federal Reserve is meeting this week to discuss monetary
policy but is widely expected hold off on making any changes. The central bank
has cut interest rates three times this year in a sharp reversal from 2018 in
an effort to buttress economic growth.
The rate cuts have injected more confidence into the market. The Fed has
signaled that it will hold off on any additional rate cuts as long as the
economy remains healthy.