US Stocks end mostly lower

The US stocks finished session mostly lower on Tuesday, 19 November 2019, with the Dow and S&P 500 index retreating from records on doubts about a U.S. - China trade deal and disappointing earnings results from Home Depot and Kohl's, while solid showing for technology sector stocks helped lift the Nasdaq composite to another all-time high. At closing bell, the Dow Jones Industrial Average declined 102.18 points, or 0.36%, to 27,934.02, while the S&P 500 index shed 1.85 points, or 0.06%, to 3,120.18. The Nasdaq Composite grew 20.72 points, or 0.24%, to 8,570.66.

Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs somewhat undermined bullish sentiment on Tuesday.

 

U.S. President Donald Trump on Tuesday threatened to escalate the trade war by raising tariffs on Chinese imports if no deal is reached with Beijing.

Markets have been on edge for much of the trading week as investors seek clarity on the state of U.S.-China trade negotiations as a Dec. 15 deadline approaches. A tariff hike on Chinese exports to the U.S. is set to kick in on that date.

The economy is clearly facing several challenges, primarily from overseas, but the three rate cuts since July should help sustain growth, New York Fed President John Williams said on Tuesday. The U.S. economy is facing headwinds from slower global growth, uncertainty from trade and muted inflation pressures, Williams said. As a result of these global factors, growth is starting to slow in the U.S., Williams warned.

Energy sector stocks took the heaviest losses as the price of U.S. crude oil dropped 3.2%. Benchmark crude oil fell $1.84 to settle at $55.21 a barrel. Brent crude oil, the international standard, dropped $1.53 to close at $60.91 a barrel. Marathon Petroleum slid 3.4% and Occidental Petroleum lost 3%.

Disappointing earnings from Home Depot and Kohl's weighed on retail stocks. Home Depot dropped 5.4% after the home improvement company reported weak sales growth for the most recent quarter and cut its forecast for the year. Kohl's plunged 19.5% after the department store operator slashed its profit forecast for the year following weak third-quarter earnings.

ECONOMIC NEWS: US Housing Starts Rebound Significantly In October-- US housing starts surged up by 3.8% to an annual rate of 1.314 million in October after plunging by 7.9% to a revised rate of 1.266 million in September, a report released by the Commerce Department on Tuesday showed. Despite the notable rebound, housing starts remain below the more than twelve-year high of 1.375 million set in August. The report said single-family housing starts climbed by 2.0% to a rate of 936,000 in October, while multi-family starts surged up by 8.6% to a rate of 378,000. The Commerce Department also said building permits spiked by 5.0% to an annual rate of 1.461 million in October after tumbling by 2.4% to a revised rate of 1.391 million in September.

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