US open: Stocks little changed amid weak data
Wall Street is trading on a mixed note as traders digest weaker-than-expected readings on service sector activity and foreign trade while scanning the headlines for news regarding the US tax reform proposals which were making their way through Congress.
As of 1514 GMT, the Dow Jones Industrial Average was slipping 0.07% or 9.13 points to 24,280.65, alongside a gain of 0.07% or 1.83 points to 2,641.40 for the S&P 500, while the Nasdaq Composite was higher by 0.46% or 30.96 points at 6,806.68.
Meanwhile, the US dollar spot index was edging up by 0.10% to 93.28, alongside an unchanged yield on the benchmark 10-year US Treasury note of 2.38%.
On Monday, the Dow notched up a record close as investors cheered the passing of the US tax reform bill, but the rest of the market closed in the red, with technology stocks under the cosh.
Jasper Lawler, head of research at London Capital Group, said: "Technology has been the most consensus, as well as the one of the best-performing trades of 2017. That combination is making investors nervous going into year-end and they are taking profits. After briefly reaching a three-day high on Monday, the tech-heavy Nasdaq 100 slammed back down to finish -1.17% and near its lows.
"The idea that tech could be in for a bigger correction does have more merit with year-end repositioning so in the short-term, a clear break below 6,250 in the Nasdaq 100 could see the index fall to 6,100 then 6,000."
Craig Erlam, senior market analyst at Oanda, said: "The passage of tax reform through Congress will likely be the key focus for US investors between now and year-end, with a rate hike this month almost entirely priced in. While these discussions take place though there is plenty of data to keep an eye on including of course this Friday’s jobs report."
In economic news, the ISM's non-manufacturing purchasing managers' index for November slipped from a reading of 60.1 for October to 57.4 in November (consensus: 59.0).
The latest foreign trade numbers from Commerce weren't much better, with the US's shortfall on foreign trade widening from -$44.9bn in September to -$48.7bn for October (consensus: -$47.5bn), amid broad-based weakness in exports, according to analysts.
Back in the equity space and from a sector standpoint, the best performing areas of the market were: Industrial suppliers (3.61%), Railroads (3.01%), Delivery services (2.94%), Apparel retailers (2.56%) and Industrial transportation (2.54%).
More specifically, shares of payments company Mastercard were higher following the approval of a new $4bn share buyback programme and a dividend hike, while car parts seller AutoZone rallied after better-than-expected earnings.
Regal Entertainment racked up strong gains after agreeing to be bought by UK cinema chain Cineworld for $3.6bn.
Shares in Revance Therapeutics were also rocketing after disclosing positive results for its wrinkle-relaxing injection in two late-stage clinical trials.
Amazon.com was also in focus after launching its first full offering in Australia.