Stocks closed broadly lower after President Donald Trump indicated he was in no hurry to make a trade deal with China and more in Tuesday’s Stock Market Update.
Technology companies, which do a lot of business with China, stocks led the declines. Intel (NASDAQ: INTC) lost 2.7%.
Trump said he had “no deadline” for making a deal, suggesting there may not be an agreement this year, as previously hoped.
Investors were also disappointed that the U.S. proposed tariffs on French goods, a day after announcing taxes on steel and aluminum imports from Chile and Argentina.
Bank stocks also suffered heavy losses as investors headed for the safety of bonds and pushed yields lower. Banks rely on higher bond yields to charge more lucrative interest rates on mortgages and other loans. The yield on the 10-year Treasury fell sharply to 1.72% from 1.83% late Monday.
Bank of America (NYSE: BAC) shed 1.8% and Citigroup (NYSE: C) fell 1.6%.
Utilities and real estate companies held up the best as investors shifted money to the safe-play sectors.
STOCK MARKET UPDATE
KEEPING SCORE: The S&P 500 fell 20 points, or 0.6% to 3,093. The Dow Jones Industrial Average dropped 280 points, or 1%, to 27,502. The Nasdaq lost 47 points, or 0.6%, to 8,520.
Asian and European markets also fell.
METAL MARRIAGE: Cleveland-Cliffs (NYSE: CLF) plunged 10.7% after the iron-ore miner said it will pay $1.1 billion for steel maker AK Steel. U.S. steel producers have struggled since the Trump administration put a 25% steel tariff into place last year. Domestic demand has slumped as oil and gas drillers pull back on purchases of steel pipe. The price for hot rolled steel has slid almost 30% this year. AK Steel (NYSE: AKS) rose 4.1%.
DRESSED FOR SUCCESS: Lands’ End (NASDAQ: LE) vaulted 21% after the clothing maker reported surprisingly good fourth-quarter earnings and raised its profit forecast for the year.
ECONOMIC WATCH: Wall Street still has a busy week ahead for some key economic gauges following disappointing manufacturing and construction data on Monday.
Investors will get a better view of the services sector, which makes up the bulk of the economy, with a November report on Wednesday. Economists expect a very slight drop in growth.
Employment data is also on tap this week. On Wednesday, payroll processor ADP will release its latest survey of hiring by private companies. The Labor Department will release its closely watched employment report on Friday.
COMMODITIES & CURRENCIES: Benchmark crude oil rose 14 cents to settle at $56.10 a barrel. Brent crude oil, the international standard, slipped 10 cents to close at $60.82 a barrel. Wholesale gasoline fell 1 cent to $1.56 per gallon. Heating oil declined 1 cent to $1.88 per gallon. Natural gas rose 11 cents to $2.44 per 1,000 cubic feet.
Gold fell $15.20 to $1,478 per ounce, silver rose 27 cents to $17.15 per ounce and copper rose 3 cents to $2.63 per pound.
The dollar fell to 108.57 Japanese yen from 108.98 yen on Monday. The euro strengthened to $1.1082 from $1.1078.
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