By Medha Singh
(Reuters) – Shares in the US sled lower in volatile trading Thursday, as a rally caused by progress in trade negotiations between the US and China, with investors favoring defensive sectors such as real estate and utilities.
Wall Street opened higher after a Chinese Ministry of Commerce spokesman said Washington and Beijing were in close contact with each other about trade, and any US trade delegation would be welcome, contributing to the optimism about trade progress between the two economic giants.
However, trading has become increasingly choppy and the strong profits of the large equity indices have eroded by the end of the session in the last two days.
On Thursday were the defensive utilities () and real estate <.splrcr> increased by more than 1 percent, while consumer goods () were 0.7 percent higher.
"Utilities and consumer defenses are two major defensive sectors that people go to when trying to hide from volatility," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE 🙂 in Austin, Texas.
The markets were also pressured by a lot of headlines, varying from a possible closure of the US government, interest rates to uncertainty surrounding the Brexit.
Concerns about slowing global growth next year have also provoked investors.
"There is a growing story that there might be a recession by 2020," said Crit Thomas, global market strategist at Touchstone Investments in Cincinnati.
"It is therefore difficult for the market to become really excited if you have a sort of story about it."
The fear was fueled, a Reuters poll showed that the yield curve of the US Treasury next year, possibly within the next six months, will invert much sooner than predicted just three months ago, with a recession that follows a year later.
At 13:03 ET hours, the Dow Jones Industrial Average () fell by 12.09 points or 0.05 percent by 24.515.18. The S & P 500 () decreased by 7.57 points, or 0.29 percent, to 2.643.50 and the Nasdaq Composite () decreased by 45.07 points, or 0.63 percent, by 7.053.24.
Retail shares fell, with Under armor (N 🙂 sliding 4.92 percent after sportswear producer 2019 forecast sales growth and profits under Wall Street estimates. The S & P detail index <.spxrt> decreased by about 0.97 percent and made a three-day rally.
Procter & Gamble Co. (N 🙂 gained 2.24 percent after Bank of America Merrill Lynch (NYSE 🙂 upgraded the consumer goods inventory to & # 39; buy & # 39; from & # 39; neutral & # 39 ;.
General Electric Co (N 🙂 jumped 7.75 per cent after years of profit JP Morgan has upgraded the shares of the industrial conglomerate to & # 39; neutral & # 39 ;.
Falling problems exceeded the competition for a 1.62-on-1 ratio on the NYSE. Falling problems exceeded the competition for a 2.62-to-1 ratio on the Nasdaq.
The S & P index recorded 10 new 52-week highs and 29 new lows, while the Nasdaq registered 13 new highs and 221 new lows.