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US STOCKS-S&P 500, Nasdaq slip as Trump, Hong Kong sour mood; Boeing lifts Dow

Published 11/11/2019, 19:16
Updated 11/11/2019, 19:19
© Reuters.  US STOCKS-S&P 500, Nasdaq slip as Trump, Hong Kong sour mood; Boeing lifts Dow
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(For a live blog on the U.S. stock market, click LIVE/ or

type LIVE/ in a news window)

* Boeing expects resumption of 737 MAX commercial flights in

* Qualcomm, Cisco drop after brokerage downgrades

* Walgreens gains on record buyout approach report

* Indexes: Dow up 0.02%, S&P down 0.24%, Nasdaq off 0.20%

(Updates to early afternoon)

By Arjun Panchadar

Nov 11 (Reuters) - The S&P 500 and Nasdaq indexes fell on

Monday, as prospects of a quick resolution to the U.S.-China

trade war dimmed following comments from President Donald Trump,

while escalating violence in Hong Kong added to the downbeat

sentiment.

However, the blue-chip Dow Jones index reversed course to

trade in positive territory, boosted by a 4.5% jump in shares of

Boeing Co BA.N after the planemaker said it expects its

grounded 737 MAX to resume commercial service in January.

Hopes of a "phase one" trade deal and largely upbeat

corporate earnings sparked a rally that helped the three major

stock indexes close at record highs on Friday.

Trump said on Saturday that the United States would only

make a trade deal if it was the "right deal" for America, adding

that the talks had moved more slowly than he would have liked.

Eight of the 11 major S&P 500 sectors were lower, with the

utilities sector .SPLRCU the biggest decliner.

Healthcare shares .SPXHC fell 0.5% and weighed the most on

the benchmark index, while the communication services sector

.SPLRCL and consumer discretionary .SPLRCD were among the

biggest drags.

Continuing violence in Hong Kong also hit sentiment after

police shot and wounded a protester in the 24th straight week of

pro-democracy unrest in the Chinese-ruled territory.

"The protests in Hong Kong seem to be increasing the worries

of a trade deal, but I think it's just an excuse to take some

money off the table," said Peter Cardillo, chief market

economist at Spartan Capital Securities in New York.

"We have been quite strong at those market highs last week,

so it's just a minor pull back, and I don't think it's going to

be enduring."

The third-quarter earnings season, which is drawing to a

close has been better-than-expected for the most part, with

nearly three quarters of the 446 S&P 500 companies that have

reported results so far topping profit estimates, according to

Refinitiv data.

Attention now shifts to economic data and Federal Reserve

Chair Jerome Powell's testimony later this week, while a handful

of big companies including Walmart Inc WMT.N , Cisco Systems

Inc CSCO.O and Nvidia Corp NVDA.O will also report earnings.

At 12:52 p.m. ET the Dow Jones Industrial Average .DJI was

up 4.91 points, or 0.02%, at 27,686.15, the S&P 500 .SPX was

down 7.42 points, or 0.24%, at 3,085.66. The Nasdaq Composite

.IXIC was down 17.21 points, or 0.20%, at 8,458.10.

Walgreens Boots Alliance Inc WBA.O gained 6.4% after

Bloomberg reported KKR & Co KKR.N had formally approached the

drugstore giant for what could be the biggest-ever leveraged

buyout. Among other stocks, Qualcomm Inc QCOM.O fell 2.7% after

Morgan Stanley downgraded the chipmaker to "equal-weight" from

"overweight".

Shares of Cisco dropped 1% as Piper Jaffray downgraded the

network gear maker to "neutral" from "overweight".

Declining issues outnumbered advancers for a 1.49-to-1 ratio

on the NYSE and a 1.44-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and one new low,

while the Nasdaq recorded 47 new highs and 74 new lows.

The Treasury market was closed on Monday for the Veterans

Day holiday.

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