US Market ends lower on US-China trade jitters

The US stock market finished session lower on Thursday, 31 October 2019, on skepticism about a U.S.-China trade truce deal and weakening manufacturing data. Concerns around trade and the economy dampened the enthusiasm around strong earnings from Apple and Facebook. At closing bell, the Dow Jones Industrial Average declined 140.46 points, or 0.52%, to 27,046.23 and the Nasdaq Composite lost 11.62 points, or 0.14%, to 8,292.36, meanwhile the S&P 500 shed 9.21 points, or 0.3%, to 3,037.56.

Concerns over trade tensions resurfaced after reports that Chinese officials are doubtful that they will be able to reach a comprehensive, long-term trade deal with the U.S. The preliminary deal was meant to be signed at the APEC meeting in Chile, but the South American country announced this week that it will no longer be hosting. President Donald Trump tweeted Thursday "China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60% of total deal."

The tariff war between the world's two biggest economies has disrupted supply chains and roiled financial markets for more than a year. The world's two biggest economies have wrangled for more than 15 months over U.S. allegations that China steals technology, forces businesses to hand over trade secrets and unfairly subsidizes its technology companies in an aggressive drive to supplant American technological dominance. They have imposed tariffs on hundreds of billions of dollars' worth of each other's goods in a trade fight that has slowed global economic growth. Negotiators from both countries are trying to settle details of the phase one deal, which sidesteps some of the biggest issues dividing the countries.

Investors will now eye the Labor Department's jobs data on Friday, which will shed light on the strength of the U.S. economy.

Apple Inc rose 1.5% after the iPhone maker forecast sales for the holiday shopping quarter ahead of expectations.

Facebook Inc jumped 3% after reporting an uptick in users in lucrative markets and its third straight rise in quarterly sales growth.

ECONOMIC NEWS: the Institute of Supply Management's Chicago Business Barometer fell 3.9 points to 43.2 in October, the lowest level since December 2015. It was its second-straight reading below 50, which marks the line between growth and contraction. The index slipped further into contraction with a second straight sub-50 reading. The survey points to further weakness in business activity, with the three-month average falling further to 46.9. New Orders declined to 37.0, its lowest since March 2009 -- Production bounced up to 46.8, although the indicator has been in contraction since July.

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