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US STOCKS-Wall St dips as whistleblower report adds to investor caution

Published 26/09/2019, 21:34
© Reuters.  US STOCKS-Wall St dips as whistleblower report adds to investor caution
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* Trump sought foreign meddling in 2020 election -report

* Facebook dips on report of antitrust investigation

* Indexes down: Dow 0.3%, S&P 0.2%, Nasdaq 0.6%

(Updates to close)

By Caroline Valetkevitch

NEW YORK, Sept 26 (Reuters) - U.S. stocks slipped on

Thursday as the release of a whistleblower report tied to the

Democrats' impeachment move against President Donald Trump kept

uncertainty high, while trade comments from China's top diplomat

helped to limit losses.

The S&P 500 briefly turned higher late in the session after

China's state councillor and foreign minister said China was

willing to buy more U.S. products. Wang Yi, in response to

questions from Reuters, said the Trump administration had shown

goodwill by waiving tariffs on many Chinese

products. Earlier in the day, the released whistleblower report

alleged that Trump not only abused his office in attempting to

solicit foreign interference in the 2020 U.S. election, but that

the White House also tried to "lock down" evidence about that

conduct. The report is seen as central to the Democrats'

impeachment inquiry. The impeachment push has added to recent market volatility.

For the market, "whether it turns into something more comes

down to how consumers respond. Without that, it's likely short-

term volatility and not much else," said Willie Delwiche,

investment strategist at Robert W. Baird in Milwaukee.

Facebook Inc FB.O was among the biggest drags on the S&P

500, dropping 1.5% after a person familiar with the matter told

Reuters that the U.S. Justice Department will open an antitrust

investigation of the social media company. The Dow Jones Industrial Average .DJI fell 79.59 points,

or 0.3%, to 26,891.12, the S&P 500 .SPX lost 7.25 points, or

0.24%, to 2,977.62 and the Nasdaq Composite .IXIC dropped

46.72 points, or 0.58%, to 8,030.66.

Investors also digested a Bloomberg report that the United

States is unlikely to extend a waiver allowing American firms to

supply China's Huawei Technologies Co Ltd. The S&P energy sector .SPNY was down 1.3%, while defensive

sectors, including utilities .SPLRCU , were among the

best-performing groups.

Shares of fitness startup Peloton Interactive Inc PTON.O

fell 11.2% in their market debut. Declining issues outnumbered advancing ones on the NYSE by a

1.27-to-1 ratio; on Nasdaq, a 2.11-to-1 ratio favored decliners.

The S&P 500 posted 33 new 52-week highs and 5 new lows; the

Nasdaq Composite recorded 29 new highs and 112 new lows.

Volume on U.S. exchanges was 6.11 billion shares, compared

with the 7.2 billion average for the full session over the last

20 trading days.

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