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* Trump to restore tariffs on Brazil, Argentina metal
imports
* U.S. factory sector contracts again in November
* Chinese PMI numbers better-than-expected
* Retail stocks in focus on Cyber Monday
* Indexes fall: Dow 0.58%, S&P 0.72%, Nasdaq 1.15%
(Updates to open)
By Arjun Panchadar
Dec 2 (Reuters) - Wall Street fell on Monday after President
Donald Trump said he would restore tariffs on metal imports from
Brazil and Argentina, while weak domestic manufacturing data
fanned worries of a slowing economy in the wake of the
U.S.-China trade war.
The U.S. economy's manufacturing sector contracted for a
fourth straight month in November, as new order volumes slid
back to around their lowest level since 2012. Construction
spending also unexpectedly fell in October. The figures were in sharp contrast to recent economic
indicators that had reassured investors of a resilient domestic
economy. Global markets had also cheered an unexpected rebound
in Chinese manufacturing earlier in the day. MKTS/GLOB
However, Trump's tweet about restoring tariffs on U.S. steel
and aluminum imports from Brazil and Argentina dampened the mood
and prompted officials in the two South American countries to
seek explanations. "The concern here is what kind of retaliatory response those
countries might have, let alone sort of a re-escalation of these
tariff wars in the midst of trying to resolve one," said Mark
Luschini, chief investment strategist at Janney Montgomery Scott
in Philadelphia.
The news sent shares of U.S. steel makers including U.S.
Steel Corp X.N and AK Steel Holding Corp AKS.N up 3% and 7%,
respectively.
The gains were an exception in a wider selloff, with 10 of
the 11 major S&P 500 sectors trading lower. The technology
sector .SPLRCT was off 1.3% and was the biggest drag on the
benchmark index.
Hopes of an imminent "phase one" trade U.S.-China trade deal
and upbeat U.S. economic data sent Wall Street to record highs
early last week.
Retail stocks including Target Corp TGT.N and Walmart Inc
WMT.N were in focus, with Cyber Monday sales expected to hit a
record following $11.6 billion in online sales on Thanksgiving
and Black Friday. At 10:27 a.m. ET the Dow Jones Industrial Average .DJI was
down 161.38 points, or 0.58%, at 27,890.03, the S&P 500 .SPX
was down 22.50 points, or 0.72%, at 3,118.48 and the Nasdaq
Composite .IXIC was down 99.57 points, or 1.15%, at 8,565.90.
Among other stocks, Roku Inc ROKU.O dropped 16.6% as
Morgan Stanley downgraded the video streaming device maker's
shares to "underweight". Declining issues outnumbered advancers for a 2.13-to-1 ratio
on the NYSE and a 2.34-to-1 ratio on the Nasdaq. The S&P index
recorded 16 new 52-week highs and two new lows, while the Nasdaq
recorded 50 new highs and 18 new lows.