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US STOCKS-Wall St dips after U.S. law on Hong Kong revives trade worries

Published 29/11/2019, 16:36
© Reuters.  US STOCKS-Wall St dips after U.S. law on Hong Kong revives trade worries
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* China warns of counter measures against the U.S.

* PG&E down after U.S. Judge sides with wildfire victims

* U.S. stock markets to shut at 1 p.m. ET

* Indexes off: Dow 0.2%, S&P 0.13%, Nasdaq 0.1%

(Updates to open)

By Arjun Panchadar

Nov 29 (Reuters) - U.S. stocks dipped on Friday as trade

tensions resurfaced after China warned it would retaliate

against President Donald Trump's decision to ratify a bill

backing protesters in Hong Kong.

China's counter measures could include barring drafters of

the legislation from mainland China, Hong Kong and Macau, the

editor of China's state-backed Global Times tabloid said in a

tweet. The trade-sensitive Philadelphia Semiconductor index .SOX

fell as much as 0.8% and was on track for its worst day in a

week.

The standoff also knocked Wall Street's main indexes off

record highs. They had closed at all-time highs in every session

so far this week on upbeat domestic data and hopes of an

imminent "phase one" trade deal.

"It is definitely a concern that the signing of the Hong

Kong bill will be seen as an impediment to an agreement," said

Rick Meckler, partner at Cherry Lane Investments in New Vernon,

New Jersey.

"At this point, investors are also using this as an

opportunity to take some profits."

A largely better-than-expected third-quarter earnings season

and a dovish stance on interest rates by the Federal Reserve

have also fuelled the stocks rally this month.

But more widely, the tariff war between the world's top two

economies has dented business sentiment and become the biggest

risk to global economic growth. The next round of U.S. tariffs

is due to take effect on Dec. 15.

At 10:19 a.m. ET the Dow Jones Industrial Average .DJI was

down 56.67 points, or 0.2%, at 28,107.33, while the S&P 500

.SPX was down 4.08 points, or 0.13%, at 3,149.55. The Nasdaq

Composite .IXIC was down 9 points, or 0.1%, at 8,696.18.

Trading volumes are expected to be light as the stock market

closes early on Friday, after a midweek holiday for Thanksgiving

Shares of PG&E Corp PCG.N fell 1.6% after a report that a

U.S. bankruptcy judge sided with wildfire victims and said the

company was subject to a doctrine known as "inverse

condemnation" that holds utilities liable for covering the costs

of wildfires. Tech Data Corp TECD.O jumped 12% as private equity firm

Apollo Global Management APO.N raised its bid for the U.S.

information technology equipment distributor to about $5.14

billion. Declining issues outnumbered advancers for a 1.33-to-1 ratio

on the NYSE and for a 1.21-to-1 ratio on the Nasdaq. The S&P

index recorded 11 new 52-week highs and one new low, while the

Nasdaq recorded 45 new highs and 17 new lows.

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