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Stocks lose ground on Trump trade comments, but close off lows
03-Dec-19 16:15 ET
Dow -280.23 at 27502.72, Nasdaq -47.34 at 8520.64, S&P -20.67 at 3093.20

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 lost as much as 1.4% on Tuesday after President Trump suggested a trade deal with China might be better if it waited until after the 2020 election. Stocks cut losses during the afternoon, though, as a buy-the-dip mindset left the benchmark index down 0.7% for the session.

The Dow Jones Industrial Average (-1.0%), Nasdaq Composite (-0.6%), and Russell 2000 (-0.3%) also closed well off their session lows.

The negative bias formed before the open as the president spoke to reporters at the NATO summit in London. President Trump may or may not have been using a negotiating tactic, but the negative-sounding headline understandably provided an excuse to take some profits off the table given the uncertainty that remains regarding a deal and the Dec. 15 tariffs.

Some follow-through selling ensued shortly after the open, but selling pressure was kept in check for the rest of the session. Weakness was found primarily in the cyclical sectors, most notably in the S&P 500 energy (-1.6%) and financials (-1.3%) sectors. The Dow Jones Transportation Average fell 2.2%.

Conversely, the real estate (+0.7%) and utilities (+0.5%) sectors were the lone sectors to finish in positive territory, predominately due to the safety trade in Treasuries that sent yields sharply lower.

The 2-yr yield dropped eight basis points to 1.54%, and the 10-yr yield dropped 13 basis points to 1.71%. The U.S. Dollar Index declined 0.1% to 97.74. WTI crude increased 0.3%, or $0.14, to $56.13/bbl.

On a separate trade front, the USTR proposed that $2.4 billion of French imports be taxed up to 100% in response to the country passing a digital tax law that allegedly targets U.S. tech companies. The Wall Street Journal reported that this amounts to less than 5% of the goods that were imported from France in 2018.

Corporate news was relatively light, but a notable story included Cleveland-Cliffs (CLF 7.51, -0.90, -10.7%) agreeing to acquire AK Steel (AKS 3.01, +0.12, +4.2%) for $1.1 billion in an all-stock transaction.

Investors did not receive any economic data on Tuesday. On Wednesday, investors will receive the ISM Non-Manufacturing Index for November, the ADP Employment Change report for November, and the weekly MBA Mortgage Applications Index.

Nasdaq Composite +28.4% YTD
S&P 500 +23.4% YTD
Russell 2000 +18.8% YTD
Dow Jones Industrial Average +17.9% YTD

Market Snapshot
Dow 27502.72 -280.23 (-1.01%)
Nasdaq 8520.64 -47.34 (-0.55%)
SP 500 3093.20 -20.67 (-0.66%)
10-yr Note +32/32 1.716
NYSE Adv 1108 Dec 1732 Vol 859.4 mln
Nasdaq Adv 1177 Dec 1944 Vol 2.3 bln

Industry Watch
Strong: Utilities, Real Estate
Weak: Energy, Financials, Industrials, Consumer Discretionary

Moving the Market

-- Stocks close down, but off lows, after President Trump says it might be better to wait until after 2020 election for U.S.-China trade deal

-- The USTR proposes tariffs of up to 100% on $2.4 billion worth of goods imported from France

--Treasury yields dropped sharply

Oil price settle slightly higher
03-Dec-19 15:25 ET
Dow -280.89 at 27502.06, Nasdaq -52.12 at 8515.86, S&P -20.84 at 3093.03

[BRIEFING.COM] The S&P 500 is down 0.7%, which marks a session high.

Reviewing the S&P 500 sectors shows nine of the 11 sectors trading lower, with energy (-1.4%) declining the most despite a slight increase in the price of oil. The real estate (+0.7%) and utilities (+0.5%) sectors remain in the green.

WTI crude settled up $0.14 (+0.3%) to $56.13/bbl.