US Stocks fall amid cloudy outlook for trade deal

The US stocks finished session lower for third session in row on Thursday, 21 November 2019, as investors assessed conflicting signals on prospects for the U.S.-China trade talks, with a fresh row over U.S. legislation on Hong Kong potentially complicating their negotiations. At closing bell, the Dow Jones Industrial Average declined 54.80 points, or 0.2%, to 27,766.29, while the S&P 500 index shed 4.92 points, or 0.16%, to 3,103.54. The Nasdaq Composite sank 20.52 points, or 0.24%, to 8,506.21.

Market participants commenced trading in a back foot on concerns that preliminary trade deal between Washington and Beijing may not be completed this year as negotiators continue to wrestle over differences. Beijing is pressing Washington to agree to broader tariff rollbacks on Chinese goods and the Trump administration counters with heightened demands of its own. Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs on about $160 billion in Chinese imports somewhat undermined sentiment.

 

The U.S. and China have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Adding to the tensions between the world's two biggest economies, both the U.S. Senate and the US House of Representatives on Wednesday passed legislation intended to support protesters in Hong Kong and send a warning to China about human rights. China regards the legislation as interference in its domestic politics.

The Organization for Economic Cooperation and Development on Thursday said the global economy was headed for its weakest growth since the financial crisis, citing the trade fights as a big factor.

The tech sector was the biggest drag on the benchmark index, while the energy sector was among the few in the positive as oil prices rose on hopes that the OPEC and its allies were likely to extend output cuts until mid-2020.

Shares in TD Ameritrade Holding Corp surged 16.9% after reports that bigger rival Charles Schwab Corp was in talks to buy the discount brokerage. Schwab's shares gained 7.3%.

ECONOMIC NEWS: The Conference Board LEI Declined Slightly in Oct -- The Conference Board said its leading economic index edged down by 0.1% to 111.7 in October after dipping by 0.2% in both September and August. The decline was driven by weaknesses in new orders for manufacturing, average weekly hours, and unemployment insurance claims. The report said the coincident economic index was unchanged at 106.5 in October after inching up by 0.1% in September, while the lagging economic index crept up by 0.1% to 108.1 in October, following a 0.1% increase in September, and a 0.6% decline in August.

Weekly Jobless Claims Unchanged At 227000- The U.S. Labor Department said that weekly jobless claims were unchanged at 227,000, compared to last week's revised data. The report said that the previous week's numbers were revised up by 2,000 claims.

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