US close: Stocks mixed on trade, social networks plunge
US stocks ended mixed after a choppy start on Wednesday, as trade talks with Canada resumed and investors left mulling the possibility that Trump could impose further tariffs on China this week.
The Dow Jones Industrial Average ended the session up 0.09% at 25,974.99, while the S&P 500 fell 0.28% to 2,888.60 and the Nasdaq 100 was 1.3% lower at 7,523.26.
Weighing on investor sentiment towards the latter was testimony from executives at Facebook and Twitter before a Senate Intelligence Committee.
Still, Deutsche Bank's Binky Chadha maintained his 3,000 year-end target for the S&P 500 on Wednesday, noting that multiples were back at pre-Presidential election levels and that US macro growth looked set to remain robust.
"The rally has been all about earnings and we expect 20%+ growth to continue in H2, 11% in 2019," the analyst wrote.
Canadian foreign minister Chrystia Freeland was due to meet US trade representative Robert Lighthizer in Washington later on Wednesday after the US and Canada failed to agree to a trade deal last Friday, the original deadline.
Canadian PM Justin Trudeau reiterated on Tuesday that the country would not sign a deal that would be inherently against its economic interests.
“Canada and the US are set to resume talks on Wednesday in an effort to bridge the divides that still exist on NAFTA and prevent the 24-year old deal being terminated by President Donald Trump, as he has threatened to do if the renegotiation isn’t successful,” said Oanda analyst Craig Erlam.
“Trump has threatened to tear up the agreement and replace it with a bilateral deal with Mexico is Canada doesn't agree to the concessions that the US is demanding, which would likely be damaging for both countries should Congress support the decision, but prove to everyone else that he isn't bluffing.”
Market participants were also mulling over the possibility that Trump could announce 25% tariffs on another $200bn of Chinese imports over the next day or two.
"Trump may have been aiming to get NAFTA over the line ahead of the midterms but I think he's in this one for the long run and the Chinese don't appear to be in any mood to back down, even if they aren't able to respond with the same volume of tariffs," Erlam added.
In corporate news, Harley-Davidson picked up 2.75% after announcing that it will open a research and development facility in Silicon Valley to support its plans for a line of electric vehicles.
HD Supply Holdings dipped 1.87% despite its quarterly earnings and revenue beat expectations.
Facebook and Twitter lost 2.33% and 6.06%, respectively, as executives from both companies testified before US lawmakers over politics and the internet.
Dow Jones - Risers
Caterpillar Inc. (CAT) $140.59 1.70%
Johnson & Johnson (JNJ) $135.86 1.60%
Exxon Mobil Corp. (XOM) $81.37 1.48%
Coca-Cola Co. (KO) $45.39 1.41%
McDonald's Corp. (MCD) $163.24 0.94%
Walgreens Boots Alliance, Inc. (WBA) $68.24 0.92%
United Technologies Corp. (UTX) $132.79 0.83%
Pfizer Inc. (PFE) $41.85 0.79%
Walmart Inc. (WMT) $96.62 0.79%
Travelers Company Inc. (TRV) $132.59 0.75%
Dow Jones - Fallers
Microsoft Corp. (MSFT) $108.49 -2.88%
Visa Inc. (V) $142.71 -2.85%
Nike Inc. (NKE) $79.92 -2.77%
American Express Co. (AXP) $105.68 -1.24%
Verizon Communications Inc. (VZ) $53.82 -1.01%
Cisco Systems Inc. (CSCO) $47.27 -0.96%
Walt Disney Co. (DIS) $109.85 -0.88%
Apple Inc. (AAPL) $226.87 -0.65%
Intel Corp. (INTC) $47.72 -0.50%
JP Morgan Chase & Co. (JPM) $114.56 -0.49%
S&P 500 - Risers
GameStop Corp. (GME) $16.26 15.73%
Goodyear Tire & Rubber Co. (GT) $23.42 4.79%
Pitney Bowes Inc. (PBI) $7.65 3.66%
J. M. Smucker Co. (SJM) $107.16 3.66%
Altria Group Inc. (MO) $60.65 3.64%
Centerpoint Energy Inc. (CNP) $28.93 3.58%
Henry Schein Inc. (HSIC) $80.65 3.54%
Dollar Tree Inc (DLTR) $82.64 3.33%
Express Scripts Holding Co (ESRX) $89.83 3.31%
Owens-Illinois Inc. (OI) $17.95 3.10%
S&P 500 - Fallers
Transocean Ltd. (RIG) $11.20 -7.51%
Southwestern Energy Co. (SWN) $5.27 -6.23%
Netflix Inc. (NFLX) $341.18 -6.17%
Tenet Healthcare Corp. (THC) $31.70 -5.99%
Halliburton Co. (HAL) $37.13 -5.95%
Teradata Corp. (TDC) $39.07 -5.79%
Spectra Energy Corp. (SE) $13.49 -5.33%
Robert Half International Inc. (RHI) $74.07 -5.25%
NetApp Inc. (NTAP) $83.32 -5.23%
Range Resources Corp. (RRC) $15.63 -4.81%
Nasdaq 100 - Risers
Henry Schein Inc. (HSIC) $80.65 3.54%
Dollar Tree Inc (DLTR) $82.64 3.33%
Express Scripts Holding Co (ESRX) $89.83 3.31%
J.B. Hunt Transport Services Inc. (JBHT) $123.07 2.58%
PACCAR Inc. (PCAR) $69.91 2.30%
DENTSPLY Sirona Inc. (XRAY) $39.46 2.04%
Mondelez International Inc. (MDLZ) $43.49 2.04%
QUALCOMM Inc. (QCOM) $70.89 1.30%
Paychex Inc. (PAYX) $73.82 1.01%
Alexion Pharmaceuticals Inc. (ALXN) $120.33 0.95%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $26.30 -10.64%
Workday, Inc. (WDAY) $142.21 -9.24%
Netflix Inc. (NFLX) $341.18 -6.17%
Micron Technology Inc. (MU) $49.54 -4.60%
Paypal Holdings Inc (PYPL) $89.05 -4.32%
Take-Two Interactive Software Inc. (TTWO) $128.90 -4.18%
Mercadolibre Inc. (MELI) $328.00 -4.17%
Adobe Systems Inc. (ADBE) $256.14 -3.95%
Ctrip.Com International Ltd. Ads (CTRP) $36.97 -3.87%
NetEase Inc. Ads (NTES) $189.75 -3.81%