US STOCKS-Trade optimism, energy stocks lift Dow; tech slide hits Nasdaq

Reuters
0
In this article:

(For a live blog on the U.S. stock market, click or type LIVE/ in an Eikon news window.)

* U.S. proposes fresh trade talks with China - WSJ

* Apple, Alphabet, Amazon drop on news of Senate testimony

* Apple gives up premarket gains; new iPhones launch awaited

* Energy stocks gain as oil prices near $80 a barrel

* Goldman's price warning hits Micron, chip gear makers

* Indexes: Dow up 0.52 pct, S&P flat, Nasdaq down 0.50 pct (Adds comments, updates prices)

By Shreyashi Sanyal

Sept 12 (Reuters) - The Nasdaq fell on Wednesday, weighed down by a drop in Apple and other companies on fears of further regulation, while a rise in energy stocks and a report of fresh U.S.-China trade talks helped keep the S&P afloat and boosted the Dow Industrials.

Washington has proposed a new round of trade talks with Beijing before the Trump administration implements additional tariffs on Chinese imports, the Wall Street Journal reported.

The trade-sensitive industrials sector gained on the news and was last up 0.56 percent. Boeing rose 2.6 percent and Caterpillar 0.9 percent.

The markets had gotten off to a weak start as shares of six major web and internet service companies, including Apple , slid after their executives were scheduled to detail their consumer data privacy practices to a U.S. Senate panel on Sept. 26.

Apple was down 0.6 percent. Twitter, Alphabet and Amazon.com, among the companies to testify, were between flat to down 4 percent. Facebook, not among the six companies to testify, was down 1.6 percent.

Apple was trading higher premarket, ahead of an event at 1 p.m. ET (1700 GMT) where the company is expected to launch new iPhone models as well as upgrades of other products.

"Headlines like the Senate hearing does add this element of regulatory risk to Apple and Amazon which is what could be driving them lower right now," said Mark Heppenstall, chief investment officer at Penn Mutual Asset Management in Horsham, Pennsylvania.

The S&P technology sector fell -0.60 percent, the most among the 11 major S&P 500 sectors.

Also helping boost the market was the energy sector, which jumped 0.99 percent as oil prices gained due to growing concerns over global supply.

At 11:43 a.m. ET the Dow Jones Industrial Average was up 134.31 points, or 0.52 percent, at 26,105.37, the S&P 500 was up 1.13 points, or 0.04 percent, at 2,889.02 and the Nasdaq Composite was down 39.50 points, or 0.50 percent, at 7,932.98.

The Philadelphia Semiconductor index was down -2.13 percent after Goldman Sachs became the latest brokerage to warn of lower prices for memory chips due to an oversupply of DRAM and NAND chips.

Micron declined 5.2 percent, the most on the S&P. Chip equipment makers were hit the hardest, falling in a range of Applied Materials' 2.3 percent drop and Entegris's 4.9 percent slide.

Gilead Sciences rose 2.2 percent after its rheumatoid arthritis drug, being developed jointly with Galapagos NV, met the main goal of a study.

Advancing issues outnumbered decliners by a 1.32-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.51-to-1 ratio on the Nasdaq.

The S&P index recorded 27 new 52-week highs and six new lows, while the Nasdaq recorded 58 new highs and 69 new lows. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)

Advertisement

Recommended Stories

  • Billionaire Bill Gates Has 51% of His Portfolio Invested in 2 Brilliant Stocks

    The Bill and Melinda Gates Foundation Trust outperformed the S&P 500 by a wide margin over the past three years, in part because of these two stocks.

  • One More Day, One More Boeing Incident - Senegal Crash Adds to Troubles

    Boeing Co (NYSE: BA) continues to face challenges as a Boeing 737-300 aircraft crashed during takeoff at Senegal’s main airport on Thursday. Air Sénégal flight HC301, operated by Transair with 78 passengers, skidded off a runway before takeoff, injuring 11 people and bringing the facility to a halt. The Blaise Diagne airport said an investigation was underway to determine the cause of the accident, which occurred at around 0100 GM, reported Reuters. Boeing is already under regulatory scrutiny af

  • Can I Use My RMDs to Transfer Money Into My Roth IRA?

    If you're taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don't need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of […] The post Can I Use My RMDs to Transfer Money Into My Roth IRA? appeared first on SmartReads by SmartAsset.

  • Ask an Advisor: Can a Nursing Home Take Our IRA? We Have a $100K IRA and a Trust to Protect Our Assets

    My wife and I are elderly. I have an individual retirement account (IRA) worth about $100,000, and we have a trust set up through our children to protect our assets. If one or both of us have to go into … Continue reading → The post Ask an Advisor: Can a Nursing Home ‘Take Our IRA?' My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets. appeared first on SmartAsset Blog.

  • Plug Power (PLUG) Reports Q1 Loss, Lags Revenue Estimates

    Plug Power (PLUG) delivered earnings and revenue surprises of -34.38% and 26.18%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?

  • ‘Seriously Underwater’ Home Mortgages Tick Up Across the US

    (Bloomberg) -- Roughly one in 37 homes are now considered seriously underwater in the US and that share is much higher across a swath of southern states, according to data out Thursday.Most Read from BloombergMicrosoft’s Xbox Is Planning More Cuts After Studio ClosingsAmericans Are Racking Up ‘Phantom Debt’ That Wall Street Can’t Track‘Seriously Underwater’ Home Mortgages Tick Up Across the USArm Slides as Tepid Outlook Fuels Concerns Over AI SlowdownNationally, 2.7% of homes carried loan balanc

  • How Much Cash Can A $300,000 Annuity Generate For Me Each Month?

    Imagine having a reliable source of income you can count on throughout your retirement. That’s the promise of an annuity. These insurance products have been designed to turn your savings into a steady stream of monthly payments. They guarantee peace of mind and financial security in your golden years. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. An

  • 1 Magnificent Dividend Stock Down 25% to Buy and Hold Forever

    A falling stock price has made Agree Realty an even more attractive passive-income investment.

  • Rivian's R2 Is Already Built to Fail

    R2 is too expensive even two years before launch.

  • Too many tractors: As boom times fade, farm equipment piles up

    Falling crop prices are leaving agriculture equipment sellers with an excess of unsold tractors and combines. The slower equipment sales are a knock-on effect of corn and soy prices dropping to more than three-year lows as U.S. farm income plummets and equipment makers and dealers are forced to pivot quickly after a period of booming business. Reuters interviewed ten equipment dealers, mostly in the Midwest, as well as farmers and analysts, who said low crop prices combined with persistently high interest rates are deterring farmers from purchasing machinery.