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US STOCKS-Wall Street slips from record levels as traders book profits

Published 30/12/2019, 17:58
© Reuters.  US STOCKS-Wall Street slips from record levels as traders book profits
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* China trade deal signing expected soon - White House

adviser

* Tesla rival Nio jumps after strong quarterly sales

* Energy sector up on higher oil prices

* Dow Jones on track for worst day in nearly four weeks

* Indexes off: Dow 0.53%, S&P 0.51%, Nasdaq 0.72%

(Updates prices)

By Manas Mishra

Dec 30 (Reuters) - Wall Street slipped on Monday as

investors booked profits on the penultimate day of the decade

after optimism over improving U.S.-China trade relations fueled

a stock market rally this month.

White House Trade Adviser Peter Navarro said on Monday the

pact was likely to be signed in the next week, but added that

confirmation would come from President Donald Trump or the

Office of U.S. Trade Representative.

A South China Morning Post report earlier said Chinese Vice

Premier Liu He would travel to Washington later this week to

sign the deal. The benchmark S&P 500 .SPX closed at all-time highs in

nine of the past 11 sessions, also powered by improving global

sentiment and a loose monetary policy by the Federal Reserve.

But with no other major updates on trade expected before the

new year and thin trading volumes in a holiday-shortened week,

some analysts expect the record run to lose steam further.

"It has been a pretty spectacular year, and Q4 especially

has been really good, so a lot of times people might be inclined

to take some profits," said Randy Frederick, vice president of

trading and derivatives for Charles Schwab in Austin.

Tech stocks largely led the drop in the S&P 500, with

Microsoft Corp MSFT.O and Apple Inc AAPL.O dragging the

sector. Information technology stocks were the best performing

among the 11 S&P 500 subsectors this year.

"It is also not uncommon for the leading sectors to pull

back first when people start to sell because if it is an

outperformer, then it warrants a lot more downside risk,"

Frederick said.

Conversely, Exxon Mobil Corp XOM.N and Chevron Corp

CVX.N led gains on the benchmark index, tracking higher oil

prices. Energy was the only S&P 500 sector in the black. O/R

At 11:20 a.m. ET, the Dow Jones Industrial Average .DJI

was down 152.05 points, or 0.53%, at 28,493.21, the S&P 500

.SPX was down 16.55 points, or 0.51%, at 3,223.47. The Nasdaq

Composite .IXIC was down 64.73 points, or 0.72%, at 8,941.89.

Nio Inc NIO.N soared 43.6% after the Tesla rival beat

quarterly revenue estimates on higher demand for its electric

vehicles. Declining issues outnumbered advancers for a 1.47-to-1 ratio

on the NYSE and for a 1.65-to-1 ratio on the Nasdaq.

The S&P index recorded 12 new 52-week highs and no new low,

while the Nasdaq recorded 48 new highs and 20 new lows.

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