October 7, 2019 / 3:56 PM / 9 days ago

US STOCKS-Wall Street cuts losses after comments from Kudlow on trade

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

* High-level U.S.-China trade talks to start on Oct. 10

* Nvidia gains as RBC raises PT

* GM falls as UAW rejects latest offer

* Dow off 0.06%, S&P 500 flat, Nasdaq up 0.11% (Updates market action, adds comments)

By Shreyashi Sanyal

Oct 7 (Reuters) - U.S. stocks cut losses on Monday after comments from White House economic adviser Larry Kudlow calmed nerves over the outcome of scheduled high-level trade talks with China later in the week, with chipmaker Nvidia buoying the tech-heavy Nasdaq index.

It was possible that the two sides could make progress during the talks in Washington and the United States was open to looking at Beijing’s proposals, Kudlow told reporters.

That helped Wall Street’s three main indexes pare losses from the opening, with the Nasdaq reversing course to trade higher.

Tariff concessions from the United States and China last month had fueled hopes of a resolution to the prolonged dispute, but a report that Beijing was increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump weighed on sentiment.

The high-level negotiations are set to begin on Thursday.

“The market is going to be volatile until we get some news out of Washington. Everything, literally, depends on the tone around trade,” said Art Hogan, chief market strategist, at National Securities in New York.

Wall Street logged a choppy start to October on anxiety over mixed economic indicators and intensifying efforts to impeach Trump, but that was offset by rising bets of a third interest rate cut this year by the Federal Reserve.

A second whistleblower has come forward with first-hand knowledge of Trump’s attempts to get the Ukrainian president to investigate a political rival, lawyers for the official said on Sunday.

Investors will now turn to the third-quarter earnings season, which kicks off next week with U.S. banks reporting, for more clarity on the impact of the trade war on Corporate America.

Analysts expect the lowest quarterly profit performance since 2016, with S&P 500 earnings seen falling nearly 3% from a year earlier, based on IBES data from Refinitiv.

At 11:22 a.m. ET, the Dow Jones Industrial Average was down 15.64 points, or 0.06%, at 26,558.08, the S&P 500 was down 0.96 points, or 0.03%, at 2,951.05 and the Nasdaq Composite was up 8.68 points, or 0.11%, at 7,991.15.

The gains in Nasdaq were driven by a 2.7% rise in Nvidia Corp. RBC Capital Markets raised its price target on the semiconductor maker, citing improved gaming and data center demand.

E*Trade Financial Corp rose 3.1% after UBS upgraded the online broker’s shares to “buy”.

General Motors Co slipped after striking workers rejected the No. 1 U.S. carmaker’s latest offer of a four-year labor contract.

Declining issues outnumbered advancers for a 1.09-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.23-to-1 ratio on the Nasdaq.

The S&P index recorded three new 52-week highs and one new lows, while the Nasdaq recorded 18 new highs and 54 new lows.

Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Bernard Orr and Sriraj Kalluvila

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below