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US STOCKS-Wall Street's trade-fueled record run pauses

Published 05/11/2019, 18:16
Updated 05/11/2019, 18:18
© Reuters.  US STOCKS-Wall Street's trade-fueled record run pauses
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* Healthcare stocks weigh on S&P 500

* Boeing props up Dow Industrials

* ISM data shows upbeat business activity in October

* Indexes: Dow up 0.11%, S&P down 0.09%, Nasdaq flat

(Changes comment, updates market action)

By Arjun Panchadar

Nov 5 (Reuters) - The three main U.S. indexes took a

breather on Tuesday after expectations of a U.S.-China trade

deal propelled them to record highs in the previous session.

The benchmark S&P 500 and Nasdaq indexes have risen in seven

of the past 10 sessions. The S&P 500 healthcare sector .SPXHC

shed 0.51% on Tuesday, while technology stocks .SPLRCT slipped

0.15% after two days of gains.

China is pushing President Donald Trump to remove more

tariffs as part of the "phase one" deal, which may be signed

this month, according to latest reports. "It sounded like we were done with a Phase one deal but now

it seems to be coming with certain caveats, like a list of

demands from China, including a rollback in tariffs, just adds

to the tail risks of a deal being signed," said Yousef Abbasi,

global market strategist at INTL FCStone Financial in New York.

Apart from hopes of a resolution to the trade war, a largely

better-than-expected third-quarter earnings season, the Federal

Reserve's interest rate cut and an upbeat October jobs report

have fueled the recent rally on Wall Street.

The S&P 500 and the Nasdaq closed at record highs for the

second consecutive session on Monday, while the Dow Jones hit a

record high for the first time since July.

Over three-quarters of the S&P 500 companies that have

reported results so far have beaten profit expectations,

Refinitiv data showed.

Further easing concerns of a slowdown in the domestic

economy, data on Tuesday showed reading on the ISM services

index improved to 54.7 in October from 52.6 in September, above

expectations of 53.4, according to economists polled by Reuters.

At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI

was up 29.98 points, or 0.11%, at 27,492.09, the S&P 500 .SPX

was down 2.89 points, or 0.09%, at 3,075.38 and the Nasdaq

Composite .IXIC was up 4.58 points, or 0.05%, at 8,437.78.

Four of the 11 major S&P 500 sectors were lower, with real

estate .SPLRCR leading the declines. The energy sector .SPNY

climbed 0.66%, as oil prices rose.

A 2% rise in Boeing Co's BA.N shares kept the blue-chip

Dow Jones index in positive territory after Chairman Dave

Calhoun said the company's board believed Chief Executive

Officer Dennis Muilenburg "has done everything right" following

two fatal crashes involving its 737 MAX jet. Adobe Inc ADBE.O rose 3.3% as the Photoshop software maker

raised its fourth-quarter digital media annualized recurring

revenue target, supporting the Nasdaq. Uber Technologies Inc UBER.N fell 7.6% after the

ride-hailing service posted a bigger third-quarter loss.

Declining issues outnumbered advancers for a 1.06-to-1 ratio

on the NYSE. Advancing issues outnumbered decliners by a

1.20-to-1 ratio on the Nasdaq.

The S&P index recorded 57 new 52-week highs and no new lows,

while the Nasdaq recorded 134 new highs and 27 new lows.

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