Fundamental Analysis

Wall Street Slips As Trade Deal Doubts Return

Wall Street slips as trade deal doubts return. Wall Street’s main indexes eased from record levels on Monday after a report stoked fresh fears about a resolution to the U.S.-China trade dispute that has hit global growth and roiled financial markets over the past 16 months.

The mood in Beijing about a deal was pessimistic due to President Donald Trump’s reluctance to roll back tariffs, CNBC reported, citing a government source.

Investors had turned optimistic over the weekend after Chinese state media said the two sides had held “constructive” trade talks, days after White House economic adviser Larry Kudlow said they were getting close to a trade deal.

“This is a market that’s going to live or die by the tone around trade,” said Art Hogan, chief market strategist at National Securities in New York.

“There is some good news that’s baked into this market, so when we get bad news (it’s) going to roll over.”

Seven of the 11 major S&P 500 sectors were lower, with the energy sector leading declines after a fall in oil prices.

Technology shares .SPLRCT dropped 0.36%, while the trade-sensitive Philadelphia Semiconductor index .SOX was down 0.42%.

Global stocks were lifted earlier by a surprise cut in a key interest rate by China for the first time in more than four years.

Attention this week turns to minutes on Wednesday from the Federal Reserve’s latest policy meeting, where the central bank cut interest rates for the third time this year.

Also on the radar are results from U.S. retailers such as Home Depot Inc (HD.N), Kohl’s Corp (KSS.N) and Target Corp (TGT.N) following a stronger-than-expected third-quarter earnings season.

At 10:26 a.m. ET, the Dow Jones Industrial Average .DJI was down 15.94 points, or 0.06%, at 27,988.95, the S&P 500 .SPX was down 7.53 points, or 0.24%, at 3,112.93 and the Nasdaq Composite .IXIC was down 31.91 points, or 0.37%, at 8,508.92.

Shares of HP Inc (HPQ.N) dipped 0.94% after the company rebuffed a $33.5 billion offer from Xerox Holdings Corp (XRX.N) and said it was open to exploring a bid for the latter. Xerox dropped 0.87%.

Coty Inc (COTY.N) gained 1.9% after saying it would pay $600 million for a majority stake in Kylie Jenner’s make-up and skincare businesses, as it looks to tap into the reality TV star’s huge social media reach.

Declining issues outnumbered advancers for a 1.45-to-1 ratio on the NYSE and for a 1.64-to-1 ratio on the Nasdaq. The S&P index recorded 32 new 52-week highs and no new lows, while the Nasdaq recorded 64 new highs and 69 new lows.

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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