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* AT&T jumps after activist Elliott urges asset sales
* U.S. 10-yr, 30-yr yields hit three-week highs
* Technology top drag among S&P sectors
* Dow up 0.08%, S&P 500 down 0.08%, Nasdaq off 0.28%
(Updates to early afternoon, adds comment)
By Uday Sampath Kumar
Sept 9 (Reuters) - Early gains on Wall Street fizzled out by
afternoon on Monday as losses in technology and healthcare
stocks overshadowed increased expectations of stimulus from
central banks around the world.
Microsoft Corp MSFT.O and Amgen Inc AMGN.O were among
the biggest drags on the S&P 500 .SPX and Nasdaq .IXIC .
Amgen fell 3.19% after analysts raised questions about data
on the company's lung cancer drug, dragging the healthcare
sector .SPXHC down 0.94%. Lenders, however, were up on broad gains in U.S. Treasury
yields on risings bets of an interest rate cut in the U.S.
Federal Reserve's September meeting. US/
Financial stocks .SPSY rose 1.20%, providing the biggest
boost to the S&P 500, with banks .SPXBK gaining 2.62%.
Technology stocks .SPLRCT fell more than 1% and were the
biggest drag on the benchmark index.
"The markets are continuing last week's positive sentiment
but with a reduction in pessimism and fear," said Scott Brown
chief economist at Raymond James in St. Petersburg, Florida.
Stocks gained last week on easing U.S.-China trade
negotiations and global political tensions as well as increased
hopes of an interest rate cut.
Cementing those expectations, Fed Chairman Jerome Powell
said late last week the central bank would "act as appropriate"
to sustain economic expansion, a phrase that financial markets
have read as a sign of an impending of rate cut. Earlier on Monday, U.S. Treasury Secretary Steven Mnuchin
said he did not see the threat of a recession as the Trump
administration seeks to revive trade negotiations with China,
adding that he expected a positive year ahead for the U.S.
economy. Energy stocks .SPNY led gains among the 11 major S&P 500
sectors with a 1.41% rise, as oil prices got a boost from the
new Saudi energy minister committing to output cuts. O/R
At 13:11 p.m. ET, the Dow Jones Industrial Average .DJI
was up 20.95 points, or 0.08%, at 26,818.41, the S&P 500 was
down 2.34 points, or 0.08%, at 2,976.37 and the Nasdaq Composite
was down 22.49 points, or 0.28%, at 8,080.59.
Among other stocks, AT&T Inc T.N gained 2.61% after
shareholder Elliott Management Corp disclosed a $3.2 billion
stake in the company and pushed for changes. Boeing (NYSE:BA) Co BA.N fell 0.84% after it suspended load testing
of its new widebody 777X aircraft over the weekend as media
reports said a cargo door failed in a ground stress test.
Shares of Fred's Inc FRED.O plunged 50.82% to a record low
after the discount retailer said it filed for Chapter 11
bankruptcy protection. Advancing issues outnumbered decliners by a 1.44-to-1 ratio
on the Nasdaq.
The S&P index recorded 33 new 52-week highs and 3 new lows,
while the Nasdaq recorded 50 new highs and 47 new lows.