US close: Markets mixed as Huawei spat rolls on
US stocks finished in a mixed state on Tuesday, after a positive start to the session and as a former Canadian diplomat was detained in China amid a political spat over Asian telecom giant Huawei.
The Dow Jones Industrial Average finished the day down 0.22% at 24,730.24 and the S&P 500 was 0.04% weaker at 2,636.78, while the Nasdaq 100 rose 0.32% to 6,704.24.
The mood was bright earlier in the day, after China's commerce ministry said that Chinese Vice Premier Liu He spoke to US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer on a call on Tuesday morning, launching formal talks.
Donald Trump tweeted: "Very productive conversations going on with China! Watch for some important announcements!"
Oanda analyst Craig Erlam said the markets were now seeing near-daily commentary on the progress of talks between the US and China.
“The reality is that this is going to be a process that moves at a glacial pace but the fact that talks are happening are a reason to be optimistic.”
However, it was later revealed that a former Canadian diplomat had been detained in China, with his current employer - the International Crisis Group - demanding his prompt and safe release.
Michael Kovrig’s detention came shortly after police in Canada arrested the chief financial officer of China’s Huawei Technologies on 1 December at the request of US authorities, infuriating Beijing in the process.
In other Trump news, the President was reportedly concerned of a “real possibility” he could be impeached once Democrats take the House of Representatives, CNN said on Monday.
A source close to the president revealed that although Trump is concerned there remained a possibility of impeachment, he was not certain it would happen since the Senate remained unturned.
On the macro front, small business sentiment in the US deteriorated more than expected in November, according to the National Federation of Independent Business.
The small business optimism index fell to 104.8 last month from 107.4 in October, missing expectations for a dip to 107.0.
"Small business owners are enthusiastic about the economy and have demonstrated their optimism by raising wages, creating new jobs, and investing in their businesses throughout 2018," said NFIB President and CEO Juanita D. Duggan.
Duggan added that overall, small business owners had shown a historic trend in optimism for their businesses and the economy, and were continuing to be “the driving force” behind economic growth.
“Capex aside, this survey looks like a softening, but this is not an interest rate-driven end-of-the-cycle rollover; it has been triggered by the drop in stock prices, which in large part reflects the trade war with China,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
“If that problem is solved, as we expect, the stock market will rebound, dragging the NFIB back up.
Elsewhere, wholesale inflation in the States fell back last month as goods and energy prices receded, but printed ahead of forecasts at the so-called 'core' level.
According to the Department of Labor, so-called final demand prices edged higher by 0.1% month-on-month in November, compared to consensus forecasts for no change, and on the back of a 1.3% jump in food costs.
Compared to October, goods prices fell by 0.4% while those for services were up by 0.3%.
Within the former, energy prices slumped by 5.0%
In corporate news, DSW shares surged 8.41% after well-received third-quarter results.
Biopharmaceutical outfit Entera Bio saw its shares reverse an earlier surge to settle 2% below the waterline, after it revealed a collaboration agreement with Amgen.
Seagate Technology and AMD were 0.78% and 0.05% lower, reversing their fortunes earlier in the session.
Dow Jones - Risers
Nike Inc. (NKE) $73.59 1.49%
Verizon Communications Inc. (VZ) $58.85 1.00%
Procter & Gamble Co. (PG) $93.92 0.95%
Microsoft Corp. (MSFT) $108.59 0.93%
Johnson & Johnson (JNJ) $146.50 0.85%
Walgreens Boots Alliance, Inc. (WBA) $81.81 0.80%
Coca-Cola Co. (KO) $49.54 0.61%
Cisco Systems Inc. (CSCO) $47.09 0.49%
Chevron Corp. (CVX) $115.47 0.46%
Intel Corp. (INTC) $47.38 0.36%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $120.97 -1.65%
Boeing Co. (BA) $322.13 -1.32%
Goldman Sachs Group Inc. (GS) $176.80 -1.14%
Dowdupont Inc. (DWDP) $53.26 -1.00%
JP Morgan Chase & Co. (JPM) $100.37 -0.98%
Pfizer Inc. (PFE) $44.01 -0.88%
Visa Inc. (V) $136.81 -0.78%
McDonald's Corp. (MCD) $183.60 -0.57%
Apple Inc. (AAPL) $168.63 -0.57%
3M Co. (MMM) $197.49 -0.43%
S&P 500 - Risers
EQT Corp. (EQT) $20.28 3.31%
Broadcom Inc. (AVGO) $246.84 3.17%
Campbell Soup Co. (CPB) $38.83 2.92%
PerkinElmer Inc. (PKI) $85.38 2.87%
Church Dwight Co Inc. (CHD) $68.40 2.73%
NRG Energy Inc. (NRG) $41.68 2.66%
Clorox Co. (CLX) $166.13 2.42%
TEGNA Inc (TGNA) $12.95 2.05%
Intuitive Surgical Inc. (ISRG) $508.06 2.00%
L3 Technologies Inc (LLL) $187.03 1.86%
S&P 500 - Fallers
Urban Outfitters Inc. (URBN) $35.15 -6.71%
Signet Jewelers Ltd (SIG) $34.68 -5.68%
Fluor Corp. (FLR) $33.81 -5.35%
Frontier Communications Co. (FTR) $2.86 -4.03%
National Oilwell Varco Inc. (NOV) $28.08 -3.70%
Darden Restaurants Inc. (DRI) $101.76 -3.43%
Invesco Ltd. (IVZ) $17.38 -3.06%
CBS Corp. (CBS) $48.24 -3.05%
Chesapeake Energy Corp. (CHK) $2.57 -3.02%
Navient Corporation (NAVI) $9.93 -2.55%
Nasdaq 100 - Risers
Broadcom Inc. (AVGO) $246.84 3.17%
Workday, Inc. (WDAY) $162.94 2.04%
Intuitive Surgical Inc. (ISRG) $508.06 2.00%
JD.com, Inc. (JD) $20.91 1.95%
Illumina Inc. (ILMN) $328.90 1.81%
Costco Wholesale Corp. (COST) $226.50 1.72%
Align Technology Inc. (ALGN) $220.27 1.67%
Skyworks Solutions Inc. (SWKS) $68.52 1.60%
DENTSPLY Sirona Inc. (XRAY) $37.00 1.48%
Booking Holdings Inc. (BKNG) $1,852.35 1.44%
Nasdaq 100 - Fallers
Qurate Retail Inc. (QRTEA) $20.91 -2.65%
Nvidia Corp. (NVDA) $148.19 -2.42%
Mylan Inc. (MYL) $29.62 -2.24%
Netflix Inc. (NFLX) $265.32 -1.62%
Biomarin Pharmaceutical Inc. (BMRN) $92.34 -1.59%
Comcast Corp. (CMCSA) $36.84 -1.37%
Baidu Inc. (BIDU) $176.85 -1.31%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $247.86 -1.29%
J.B. Hunt Transport Services Inc. (JBHT) $98.66 -1.25%
Dish Network Corp. (DISH) $31.62 -1.13%