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US STOCKS-Wall St flat as trade optimism wanes, earnings in focus

Published 14/10/2019, 18:44
© Reuters.  US STOCKS-Wall St flat as trade optimism wanes, earnings in focus
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* Mnuchin sees extra tariffs in Dec if deal not signed

* China seeking more talks before signing deal -Bloomberg

* Nike, 3M among top gainers on the Dow

* AECOM rises after deal to sell management services unit

* Indexes: Dow up 0.06%, S&P 500, Nasdaq down about 0.1%

(Updates market action)

By Arjun Panchadar and Sagarika Jaisinghani

Oct 14 (Reuters) - U.S. stocks paused on Monday after three

sessions of gains as a lack of clarity over the first phase of a

U.S.-China trade deal weighed on sentiment, while investors

geared up for the third-quarter earnings season.

The S&P 500 and Dow Jones indexes had ended Friday with

their first weekly gain in a month after Washington signaled the

two sides had taken a major step in easing the tit-for-tat

measures that have hammered global growth this year.

President Donald Trump, however, acknowledged that the

agreement could still collapse, while Treasury Secretary Steven

Mnuchin said on Monday he had "every expectation" that if a

U.S.-China trade deal was not in place by Dec. 15, additional

tariffs would be imposed. "Investors are trying to wrap their head around this 'non

deal'," said Robert Pavlik, chief investment strategist at

SlateStone Wealth LLC in New York.

"If (the market) was really skeptical, it would be selling

off a lot harder. But it's not because there are some good

points to it - that they are still talking and potentially

reaching a deal."

Financial markets had a rocky start to the month on signs of

escalating trade tensions, slowing global economic growth and

rising geopolitical risks. The S&P 500 and Dow Jones indexes are

off about 0.3% so far this month, reversing a gain of about 2%

for September.

Sectors considered stable during times of economic

uncertainties such as utilities .SPLRCU and consumer staples

.SPLRCS were the top decliners among the S&P sectors.

Investors will now keep a close watch on the earnings season

to gauge the impact of the trade conflict and a sluggish

domestic economy on corporate America.

The reporting season kicks off on Tuesday, with the big U.S.

banks expected to report a 1.2% decline in earnings due to

falling interest rates, a raft of unsuccessful stock market

floatation and trade tensions. Overall, analysts are forecasting a 3.2% decline in profit

for S&P 500 companies for the quarter from a year earlier, based

on IBES data from Refinitiv.

At 12:54 p.m. ET the Dow Jones Industrial Average .DJI was

up 16.34 points, or 0.06%, at 26,832.93, boosted by shares in 3M

MMM.N and Nike Inc NKE.N .

The S&P 500 .SPX was down 2.63 points, or 0.09%, at

2,967.64 and the Nasdaq Composite .IXIC was down 6.70 points,

or 0.08%, at 8,050.34.

Among individual stocks, Beyond Meat Inc BYND.O fell 4.4%

after Wells Fargo initiated coverage of the plant-based meat

maker with "market perform". Nike rose 1% after Bank of America Merrill Lynch upgraded

the stock to "neutral" from "underperform".

Shares of U.S. construction and engineering company AECOM

ACM.N rose 4.5% after it agreed to sell its management

services unit to private equity firms for about $2.4 billion.

Declining issues outnumbered advancers for a 1.36-to-1 ratio

on the NYSE and a 1.54-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and three new

lows, while the Nasdaq recorded 14 new highs and 90 new lows.

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