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* USTR threatens $4 bln in additional tariffs on EU goods
* Gilead rises on plans for new drug filing
* Energy falls the most among S&P sectors
* Indexes off: Dow 0.23%, S&P 0.23%, Nasdaq 0.33%
(Updates to early)
By Shreyashi Sanyal
July 2 (Reuters) - U.S. stocks edged lower on Tuesday, as a
relief rally sparked by optimism over the U.S.-China trade truce
stalled after the United States threatened tariffs on additional
European goods.
Washington's proposed tariffs on $4 billion worth of EU
goods in a long-running dispute over aircraft subsidies unnerved
investors and came just as trade tensions with China seemed to
be easing.
The threat of new EU tariffs adds to the lack of clarity
around global trade and will be in the back of investors' minds,
said Eric Wiegand, a senior portfolio manager at U.S. Bank
Wealth Management in New York.
Wiegand also said markets could see heightened volatility on
Wednesday due to thin trading volumes ahead of the July Fourth
holiday.
Adding to the downbeat mood was a clutch of weak
manufacturing data from around the world that stoked global
growth fears.
The concerns triggered a more than 3% drop in crude prices
despite an agreement among oil producers to extend supply cuts
and pushed the energy sector .SPNY down nearly 2%, the biggest
drag on markets. O/R
The S&P 500 index .SPX hit a record high on Monday after
Washington and Beijing agreed over the weekend to resume trade
talks that broke down in May. The collapse triggered the worst monthly performance this
year, but markets have since recouped most of their losses on
hopes that the Federal Reserve would be more accommodative in
the face of signs of slowing global economy.
Market participants still expect the Fed to cut interest
rates at its July 30-31 policy meeting, despite the latest
developments in trade talks.
The Dow Jones Industrial Average .DJI fell 61.46 points,
or 0.23%, to 26,655.97 and the S&P 500 .SPX lost 6.71 points,
or 0.23%, to 2,957.62.
The Nasdaq Composite .IXIC dropped 27.09 points, or 0.33%,
to 8,064.08.
Automatic Data Processing ADP.O slipped 4%, pressuring the
tech-heavy Nasdaq, after market sources said brokerage Jefferies
is re-offering 8 million of the company's shares at a discount.
L3Harris Technologies LHX.N gained 3.33%, the most on the
S&P 500, after Jefferies added the defense contractor to its top
picks for aerospace and defense electronics for the second half
of 2019.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N
declined more than 1% each.
Gilead Sciences Inc GILD.O rose 1% after the drugmaker
said it will submit a new drug application for its arthritis
drug to the FDA this year. Investors are now awaiting the monthly jobs report on
Friday, which is expected to show that the private sector added
160,000 jobs in June, after May's sharp slowdown in jobs growth.
Declining issues outnumbered advancers for a 1.13-to-1 ratio
on the NYSE and for a 1.70-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and one new low,
while the Nasdaq recorded 50 new highs and 37 new lows.