Intel stock extends gains after report of possible U.S. government stake
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* Tech stocks lead declines among major S&P sectors
* Wells Fargo rises on new CEO appointment
* Micron falls on weak Q1 profit outlook
* U.S. consumer spending barely rises in August
* Indexes down: Dow 0.18%, S&P 0.48%, Nasdaq 0.99%
(Updates to early afternoon)
By Ambar Warrick and Medha Singh
Sept 27 (Reuters) - U.S. stocks slipped on Friday after news
that the Trump administration was considering delisting Chinese
companies from U.S. stock exchanges and limit U.S. investments
into China.
U.S.-listed shares of Alibaba Group Holding Ltd BABA.N ,
Baidu Inc BIDU.O and JD.com Inc JD.O slipped between 4% and
7% on the news.
The tariff-sensitive Philadelphia semiconductor index .SOX
extended its decline to 1.7%. The index was already under
pressure from Micron Technology Inc's MU.O 10% tumble after
forecasting a disappointing first-quarter profit. The S&P technology .SPLRCT sector slipped 1.2%, the most
among the 11 major S&P sectors.
High-level trade talks between Washington and Beijing are
scheduled for next month before the start of the third-quarter
earnings season.
"You never know if it's a ploy to get some leverage on those
talks ... it could be just trying to rile up the base, but at
face value, it's going to be a bit of a negative for the
markets," said Scott Brown, chief economist at Raymond James in
St. Petersburg, Florida.
The three main indexes are set to end a volatile week
slightly lower, after conflicting headlines about U.S.-China
trade and as U.S. Democrats launched an impeachment
investigation on President Donald Trump.
Shares of Wells Fargo & Co WFC.N rose 4.1% and were the
top gainers on the S&P 500 .SPX after the lender named banking
veteran Charles Scharf as chief executive officer. The banking
sub-sector .SPXBK rose 1.2%. In addition to trade headlines, investors will next week
focus on the ISM's purchasing managers index (PMI) data for
September, especially after the August report showed contraction
in the manufacturing sector, as well as the pivotal jobs report.
At 13:14 ET, the Dow Jones Industrial Average .DJI was
down 47.87 points, or 0.18%, at 26,843.25, the S&P 500 .SPX
was down 14.31 points, or 0.48%, at 2,963.31. The Nasdaq
Composite .IXIC was down 79.54 points, or 0.99%, at 7,951.12.
Data showed U.S. consumer spending barely rose in August,
suggesting that the economy's main growth engine was slowing
after accelerating sharply in the second quarter. New orders for key U.S.-made capital goods also unexpectedly
fell in August, but the so-called core personal consumption
expenditures (PCE) price index, the Fed's preferred inflation
measure, rose to 1.8% in August, the biggest rise in prices
since January. issues outnumbered advancers for a 1.36-to-1 ratio
on the NYSE and a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and five new
lows, while the Nasdaq recorded 24 new highs and 83 new lows.