(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* China Aug factory deflation deepens
* Tech stocks weigh most among 11 major sectors
* Ford falls as Moody's downgrades bonds to junk
* Indexes fall: Dow 0.38%, S&P 500 0.69%, Nasdaq 0.96%
(Updates to open)
By Uday Sampath Kumar
Sept 10 (Reuters) - U.S. stocks fell in morning trading on
Tuesday as weak economic data from China added to fears of a
global recession and pushed investors out of riskier technology
stocks.
China's factory-gate prices shrank 0.8% in August, the
sharpest pace of decline in three years, as businesses slashed
prices to cope with flagging demand amid a bruising trade war
with the United States that has slowed growth in the world's
second largest economy. Microsoft Corp MSFT.O was the biggest drag on the S&P 500
for the second straight session. Losses in Visa Inc V.N and
Mastercard Inc MA.N pulled the tech sector .SPLRCT 1.51%
lower. Healthcare stocks .SPXHC were down 1.26%.
Bank stocks .SPXBK were the top boost to the financial
sector, rising 1.06%, while energy stocks jumped 1.53%. U.S.
Treasury yields US2YT=RR US10YT=RR climbed to fresh
three-week peaks. US/
Trading so far this week has largely been subdued as
investors hold out for policy decisions from central banks on
potential monetary easing.
The U.S. Federal Reserve and the European Central Bank (ECB)
are widely expected to cut interest rates over the next two
weeks, but investors doubt the extent to which central banks'
measures will stem an economic slowdown.
"Expectations may be in front of themselves about the amount
of new monetary policy stimulus that the ECB is going to move
forward with," said Art Hogan, chief market strategist at
National Securities in New York.
However, a prolonged U.S.-China trade war could dull the
effect of potential rate cuts on economic growth, Hogan said.
Among other stocks, Ford Motor Co F.N fell 3.4% after
ratings agency Moody's downgraded its bonds to junk status
overnight.
Separately, the U.S. House Judiciary Committee laid out
plans to hold hearings into the Justice Department's decision to
open an antitrust investigation into Ford and three other
automakers. The FAANG set of stocks were also trading lower, with Apple
Inc AAPL.O dipping 0.4% ahead of an event where it is widely
expected to unveil its latest iPhones.
Details on its new video streaming service could also move
shares of Netflix Inc NFLX.O and Walt Disney Co DIS.N .
Netflix was down 0.2%.
At 10:12 a.m. ET the Dow Jones Industrial Average .DJI was
down 102.43 points, or 0.38%, at 26,733.08, the S&P 500 .SPX
was down 20.68 points, or 0.69%, at 2,957.75 and the Nasdaq
Composite .IXIC was down 77.30 points, or 0.96%, at 8,010.14.
Later in the day, Boeing Co BA.N is set to report monthly
aircraft deliveries, which will give investors a deeper look
into the effect of the grounding of 737 MAX jets. Shares of the
planemaker rose 1.5%.
Advancing issues outnumbered decliners by a 1-to-1 ratio on the
NYSE. Declining issues outnumbered advancers for a 1.11-to-1
ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and two new
lows, while the Nasdaq recorded 15 new highs and 26 new lows.