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US STOCKS-S&P 500, Dow slip as trade-fuelled rally pauses

Published 08/11/2019, 18:00
Updated 08/11/2019, 18:09
© Reuters.  US STOCKS-S&P 500, Dow slip as trade-fuelled rally pauses
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Trump says has not agreed to roll back tariffs

* Disney rises on revenue, profit beat

* Gap falls after surprise CEO exit

* Indexes: Dow falls 0.25%, S&P off 0.06%, Nasdaq up 0.12%

(Changes comment, updates market action)

By Arjun Panchadar and Agamoni Ghosh

Nov 8 (Reuters) - The S&P 500 and Dow Jones indexes stalled

on Friday after a record run, as U.S. President Donald Trump

contradicted reports that the United States and China would roll

back existing tariffs.

However, the Nasdaq eked out gains on the back of a rise in

shares of Facebook Inc FB.O and Microsoft Corp MSFT.O .

The benchmark S&P 500 and blue-chip Dow had closed at

all-time highs on Thursday after officials said both countries

had agreed to roll back tariffs on each others' goods in a

"phase one" trade deal if it is completed.

However, Trump said on Friday he had not agreed to roll back

the tariffs, although Beijing would like him to do so. The news

sent all the three major U.S. stock indexes sharply lower, but

the S&P and Nasdaq quickly recovered to trade near flat.

"Let's not forget that in the past we have come so close to

a trade agreement and at the last minute there has been a

pullback," said Michael Geraghty, capital market strategist at

Cornerstone Capital Group in New York.

"The president is very set in his way and the Chinese have

their viewpoint too, so it seems it's going to take a bit longer

for the trade deal to be nailed down."

Seven of the 11 major S&P 500 sectors were trading lower,

with the energy sector shedding 1.4% as oil prices fell. O/R

The financials sector .SPSY was also lower as the

benchmark U.S. 10-year Treasury yield came down from the

three-month high hit on Thursday. US/

Still, the S&P 500 was on track for its fifth straight week

of gains, while the Nasdaq was eyeing its sixth consecutive

weekly rise, partly propelled by a rosy third-quarter earnings

season.

Walt Disney Co DIS.N gained 4% as its popular theme parks

and a remake of "The Lion King" lifted earnings, and the company

also spent less than it had projected on its online streaming

service, Disney+. At 11:34 a.m. ET the Dow Jones Industrial Average .DJI was

down 70.35 points, or 0.25%, at 27,604.45, the S&P 500 .SPX

was down 1.95 points, or 0.06%, at 3,083.23. The Nasdaq

Composite .IXIC was up 10.05 points, or 0.12%, at 8,444.57.

Dragging on the Dow were losses in shares of trade-sensitive

industrials 3M Co MMM.N and Boeing Co BA.N .

Among other stocks, Gap Inc GPS.N fell 6.5% after it said

Chief Executive Officer Art Peck would leave the company, a

surprise exit in the middle of a restructuring. The apparel

retailer also slashed its full-year earnings forecast.

Energy drinks maker Monster Beverage Corp MNST.O rose 3.7%

after posting a better-than-expected third-quarter profit and

announcing a $500 million share buyback plan. Declining issues outnumbered advancers for a 1.12-to-1 ratio

on the NYSE. Advancing issues outnumbered decliners for a

1.07-to-1 ratio on the Nasdaq.

The S&P index recorded 17 new 52-week highs and two new

lows, while the Nasdaq recorded 44 new highs and 65 new lows.

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