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US STOCKS-Wall Street drops after China cancels trip to Montana farmland

Published 20/09/2019, 21:22
© Reuters.  US STOCKS-Wall Street drops after China cancels trip to Montana farmland
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* China delegates scrap U.S. farm visit, indexes fall

* Trade-sensitive tech sector drops

* Netflix drags after CEO comments

* Indexes end: Dow -0.59%, S&P 500 -0.49%, Nasdaq -0.80%

(New throughout, updates prices, market activity and comments

to close)

By Noel Randewich

Sept 20 (Reuters) - Wall Street dropped on Friday, and also

finished the week lower, after a Chinese agriculture delegation

canceled a planned visit to Montana, dampening optimism about

U.S.-China trade talks.

The delegates, who had been set to visit U.S. farm states

next week, will return to China sooner than originally

scheduled, the Montana Farm Bureau said. Major stock indexes fell into negative territory after the

cancellation, which came as trade talks were held in Washington

and U.S. President Donald Trump said he wanted a complete trade

deal, not just an agreement for China to buy more U.S.

agricultural goods. Before the news, the S&P 500

and Dow industrials were in positive territory.

For months, Wall Street has bounced up and down with signs

of improvement or deterioration in trade talks, often based on

comments or tweets from Trump, a cycle investors have grown

accustomed to.

"In this case, it's a bit more concerning because it's China

making the decision, rather than Trump," said Willie Delwiche,

markets strategist at Baird in Milwaukee.

Trade optimism in recent weeks helped elevate the S&P 500

.SPX to just shy of its all-time high hit in July.

Eight of the 11 major S&P sectors fell on Friday. The S&P

500 consumer discretionary index .SPLRCD and tariff-sensitive

S&P 500 information technology index .SPLRCT declined the

most, down 1.2% and 1.1%, respectively. The Philadelphia chip

index .SOX slid 1.8%.

The Dow Jones Industrial Average .DJI fell 0.59% to end

the week at 26,934.46 points, while the S&P 500 .SPX lost

0.49% to 2,991.99.

The Nasdaq Composite .IXIC dropped 0.8% to 8,117.67.

For the week, the S&P 500 fell 0.52%, the Dow lost 1.05% and

the Nasdaq declined 0.72%.

Netflix tumbled 5.5% after CEO Reed Hastings made comments

underscoring growing costs and rising competition from Walt

Disney Co DIS.N , Apple Inc AAPL.O and other video streaming

services. Adding to Netflix's woes, Evercore ISI said recent data

painted an uncertain picture of the company's international

subscriber growth.

The S&P 500 healthcare index .SPXHC , which has been the

worst performing S&P sector this year, clocked the biggest gain

among the 11 major sectors, up 0.6%.

Merck & Co MRK.N gained 1.4% after the company's drugs

Pifeltro and Delstrigo received FDA approval for use in certain

adult patients with HIV-1 who are "virally suppressed."

Roku Inc ROKU.O slumped 19.2% after Pivotal Research

started coverage of its shares with a "sell" rating.

Xilinx Inc XLNX.O dropped 6.8% after Chief Financial

Officer Lorenzo Flores said he would step down, prompting Bank

of America Merrill to downgrade the chipmaker to "neutral."

Advancing issues outnumbered declining ones on the NYSE by a

1.01-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.

The S&P 500 posted 22 new 52-week highs and no new lows; the

Nasdaq Composite recorded 47 new highs and 51 new lows.

With investors unwinding positions in futures and options

contracts before they expire, volume on U.S. exchanges was 9.8

billion shares, compared with a 7.1 billion-share average over

the last 20 trading days.

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