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US STOCKS-Wall Street dips as investors await U.S.-China trade progress

Published 21/11/2019, 22:34
© Reuters.  US STOCKS-Wall Street dips as investors await U.S.-China trade progress
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* S&P, Dow register third straight losses

* Energy shares up, tracking oil prices

* TD Ameritrade surges as Schwab in talks to buy company

-CNBC

* Indexes down: Dow 0.2%, S&P 0.16%, Nasdaq 0.24%

(Updates to close)

By Sinéad Carew

Nov 21 (Reuters) - U.S. stock indexes moved slightly lower

on Thursday as investors moved to the sidelines with mixed

messages and no concrete signs of progress on U.S.-China

relations.

The U.S. House of Representatives passed two bills to back

protesters in Hong Kong and send a warning to China about human

rights, a measure that angered Beijing.

But China still invited top U.S. trade negotiators for a new

round of face-to-face talks in Beijing, the Wall Street Journal

reported, citing unidentified sources. This was a day after stocks sold off on a report that a

phase 1 U.S.-China deal was not likely to happen this year.

As a result, investors were wary of putting further

bets on a trade deal and keeping in mind that stocks are still

near record highs.

"The fulcrum of this optimism see-saw is the prospects for

the phase 1 trade agreement. Investors are pulling petals from a

daisy saying, 'It'll happen this year, it won't,'" said Sam

Stovall, chief investment strategist at CFRA Research in New

York.

"They are basically saying 'We've pushed this as far as we

can.' Valuations appear stretched at 18.5 times forward earnings

compared with the 20-year average forward P/E Of 16.5," he said.

The Dow Jones Industrial Average .DJI fell 54.80 points,

or 0.2%, to 27,766.29, the S&P 500 .SPX lost 4.92 points, or

0.16%, to 3,103.54, and the Nasdaq Composite .IXIC dropped

20.52 points, or 0.24%, to 8,506.21.

While the number of Americans seeking unemployment benefits

was unexpectedly unchanged at a five-month high last week,

suggesting some labor market softening, U.S. home sales

increased more than expected in October and house prices rose at

the fastest pace in more than two years amid lower mortgage

rates and a supply shortage. Jack Ablin, chief investment officer at Cresset Capital

Management in Chicago, said there was not enough surprise in the

data to generate a decisive market move.

"This is a market in search of a catalyst," he said.

Three of the S&P 500's 11 major industry sectors rose, with

energy .SPNY showing the biggest gain at 1.6% as oil prices

gained on hopes that OPEC and its allies were likely to extend

output cuts until mid-2020. Real estate .SPLRCR showed the biggest decline at 1.4%,

while technology .SPLRCT was the biggest drag on the benchmark

index with a 0.5% drop.

Shares in TD Ameritrade Holding Corp AMTD.O surged 16.9%

after CNBC reported bigger rival Charles Schwab Corp SCHW.N

was in talks to buy the discount brokerage. Schwab's shares

gained 7.3%. Rival E*Trade Financial lost 9.3%. Tiffany & Co TIF.N gained about 2.6% after a Reuters

report that LVMH LVMH.PA persuaded the jewelry chain to allow

it to access its books following a raised bid. Declining issues outnumbered advancing ones on the NYSE by a

1.55-to-1 ratio; on Nasdaq, a 1.37-to-1 ratio favored decliners.

The S&P 500 posted 11 new 52-week highs and 4 new lows; the

Nasdaq Composite recorded 52 new highs and 88 new lows.

On U.S. exchanges, 6.83 billion shares changed hands,

compared with the 7.05 billion average for the last 20 sessions.

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