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Wall Street closes slightly lower as US-China trade concern weighs on investors

US Treasury Secretary Steven Mnuchin is reportedly preparing for a resumption of trade talks

Some yellow cabs and a Nasdaq sign
Take-Two Interactive led the Nasdaq lower after a disappointing projection

Stocks edged lower Wednesday as concern over US-China traded relations and mixed corporate earnings weighed on investors.

The Dow Jones Industrial Average slipped 26.89, or 0.1%, to 25,384.63 at the close of trading. The Nasdaq Composite decreased 0.4% to 7,375.28.

DowDuPont Inc (NYSE:DWDP ) was the biggest loser among the blue-chips, falling 1.9% to $53.21.

Treasury Secretary Steven Mnuchin is expected to head to Beijing early next week to resume trade talks, The Wall Street Journal reported.

Take-Two Interactive Software Inc (NASDAQ:TTWO) led the Nasdaq lower, tumbling 14% to $92.53 after the videogame publisher projected fourth-quarter net revenue from $530 million to $580 million, trailing the average estimate of $606.29 million.

The S&P 500 Index fell 0.2% to 2,731.62 while the Russell 2000 Index of small-caps was down 0.1% to 1,518.32.

In Canada, the S&P/TSX Composite Index was little changed at 15,711.27.

2 PM: Wall Street slips as uncertainty about US-China trade talks weighs on markets

US stocks slipped further in afternoon trade as a mixed set of quarterly results and uncertainty about US-China trade talks continued to weigh on markets.

At the time of writing, the Dow Jones Industrial Average had shed 0.13% to 25,378, held back by Microsoft, DowDuPont, Walt Disney and Caterpillar.

The S&P 500 was also off 0.32% at 2,729, led lower by two video-game makers, Take-Two Interactive Software Inc and  Electronic Arts, while the tech-laden Nasdaq reversed course and shed 0.46% to 7,367.

On the list of companies reporting earnings that fell short of expectations was the pharmaceutical company Eli Lilly, which shed 0.77% to $119.50 in response.

Stocks faring well, meanwhile, included General Motors (NYSE:GM), which was up 0.87%, and Snap (NYSE:SNAP), which climbed almost 25%, after the two companies posted better-than-expected results.

Steven Mnuchin, US Treasury Secretary, also moved markets by reporting that he will head to Beijing for trade discussions after “very productive” trade talks with China last week, according to published reports.

Up in Canada, Toronto’s TSX climbed 29 points to hit 15,731 while the Russell 2000 index of small-cap stocks lost 0.23% to hit 1,516.

10 AM: US stocks open slightly lower after President Trump’s rhetoric on the wall

US stocks opened lower Wednesday following President Donald Trump’s State of the Union address, wherein the president reiterated a hardline stance on trade policy and again called for Congress to come to an agreement to provide funds for his proposed border wall.

The Dow Jones Industrial Average shed 39.77 points, or 0.16% to 25,371.75 led lower by Travelers Companies, Nike and Microsoft.

The S&P 500 opened in the red and hovered at 2,735.62 led lower by Electronic Arts, Take-Two Interactive and Activision Blizzard.

The Nasdaq Composite was the only major index in the green. It gained 4.17 points, or 0.06% to 7,406.25 led higher by Skyworks Solutions and Microchip Technology.

Skyworks rallied nearly 13.9% after its board approved a new $2 billion share repurchase program, which entirely replaces the $1 billion program announced in early 2018 that had about $129M remaining.

Elsewhere, the Russell 2000 index of small-cap stocks was in the red hovering around 1,519.38.

7.15 AM: Wall Street shares seen going into reverse as traders await more earnings

Wall Street stocks are looking at a lower open midweek, while European benchmarks are also seeing red this morning.

It comes after President Trump's State of the Union address last night, widely seen as an attempt to reach out to his key supporters with an eye on the 2020 election.

He did also confirm a second summit with North Korea, saying it would be within weeks.

 

US benchmarks closed firmly higher Tuesday, with the Dow Jones Industrial Average adding around 172 points to 25,411; the Nasdaq adding around 54 and the S&P 500 gaining almost 13 points.

In Toronto, the TSX closed over 100 points higher at 15,702.

In futures trade today, the Dow Jones is down 30 points; the Nasdaq is down around four and S&P 500 futures are off around two points.

Connor Campbell, financial analyst at London-based spreadbetter Spreadex, said that "taking a mild morning as its cue", the Dow Jones is set to dip when the bell rings on Wall Street, a move that would cause it to drop below the 25400 - a two-month peak struck on Tuesday.

In Europe, FTSE 100 is off around six points; the German DAX is down nearly 59 and the French CAC 40 lost around 12.

Investors are expecting another slew of earnings on Wednesday, including from media giant 21st Century Fox (NASDAQ:FOXA), Boston Scientific (NYSE:BSX), Eli Lilly And Co (NYSE:LLY) and Humana Inc (NYSE:HUM).

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