By Anora M. Gaudiano, MarketWatch , Ryan Vlastelica
China to reduce import duties on passenger cars
U.S. stocks were little changed on Tuesday, with investors
holding off on big bets a day after sharp gains, particularly as
uncertainty over trade policy and other geopolitical issues
remained high.
Read: Meet 'green gold' -- and the stock for betting on it
(http://www.marketwatch.com/story/meet-green-gold-and-the-stock-for-betting-on-it-2018-05-22)
What are markets doing?
The Dow Jones Industrial Average dipped 63 points, or 0.3%, to
24,950.
The S&P 500 rose 5 points, or 0.2%, to 2,737. Financials
were by far the strongest performers of the day, up 1.2%. On the
downside, industrial stocks -- a sector that is heavily correlated
with trade concerns -- fell 0.7%.
The Nasdaq Composite Index was up 12 points, or 0.2%, to
7,405.
The small-cap benchmark Russell 2000 index dipped 3 points to
1,638. It was on track to end a four-day rally that took it to a
series of records
(http://www.marketwatch.com/story/russell-2000-hits-record-in-early-trading-2018-05-21).
Opinion: Here's what the Russell 2000's new high means for the
S&P 500
(http://www.marketwatch.com/story/heres-what-the-russell-2000s-new-high-means-for-the-sp-500-2018-05-22)
Read:The strong dollar is a stock-market drag and poses a threat
to earnings growth
(http://www.marketwatch.com/story/the-strong-dollar-is-a-stock-market-drag-and-poses-a-threat-to-earnings-growth-2018-05-19)
What's driving the market?
Asked if he was happy with how U.S.-China trade talks were going
(http://www.marketwatch.com/story/trump-today-president-suggests-world--class-poker-player-xi-to-blame-for-shift-in-north-koreas-attitude-about-summit-2018-05-22),
President Donald Trump told reporters, "Not really." Trump said
negotiations "have a long way to go."
The Chinese government said earlier Tuesday that it will cut
import duties on passenger cars as of July 1 to 15% from the
current 25%. And the U.S. and China are also reportedly nearing a
deal to settle a controversy over Chinese telecom group ZTE Corp
(http://www.marketwatch.com/story/us-china-near-deal-that-would-ease-off-zte-ban-2018-05-21).
Optimism over trade has risen recently, after Treasury Secretary
Steven Mnuchin said that the Trump administration would delay
implementation of tariffs on Chinese goods and "put the trade war
on hold" while working out details of a deal between the
countries.
Other geopolitical tensions continue to hover in the background,
with uncertainty over a historic meeting between Trump and North
Korea's dictator Kim Jong Un. Vice President Mike Pence warned in
an interview late Monday that North Korea cannot "play" Trump
(http://www.marketwatch.com/story/north-korea-cannot-play-president-trump-warns-pence-2018-05-22)
(http://www.marketwatch.com/story/north-korea-cannot-play-president-trump-warns-pence-2018-05-22)
where nuclear disarmament is concerned. On Tuesday, Trump said a
planned summit with Un may happen later than currently scheduled
(http://www.marketwatch.com/story/trump-says-summit-with-north-koreas-kim-may-happen-later-than-scheduled-2018-05-22).
Meanwhile, laying out new demands for Iran on Monday
(http://www.marketwatch.com/story/pompeo-lays-out-trump-administrations-demands-for-new-iran-deal-2018-05-21),
the White House said any new nuclear deal with the U.S. would
require Iran to stop enriching uranium and to pull its support for
militant groups in the Middle East. The demands were met by
immediate rejection from Iran.
Read:Here's the hidden stock-market risk investors need to watch
out for
(http://www.marketwatch.com/story/heres-the-hidden-stock-market-risk-investors-need-to-watch-out-for-2018-05-22)
What are strategists saying?
"Today is a bit of a pause day following the great news we just
got about the trade war being on hold. For the moment, investors
are taking a wait-and-see attitude with respect to the
negotiations, especially with the other geopolitical issues
weighing on the market," said Jeff Kravetz, regional investment
strategist at U.S. Bank Wealth Management.
"Issues like the future of the North Korea summit or
negotiations with Iran are things that investors are very concerned
about, though they're more psychological than things that would
have a major economic impact. Our view is that markets will move
higher over the remainder of the year, but it will be a volatile
journey to get there."
What stocks are in focus?
J.C. Penney Co. (JCP) shares fell 5.2% after the company's chief
executive quit to take over leadership
(http://www.marketwatch.com/story/jc-penney-ceo-quits-to-join-lowes-2018-05-22-134853025)
of Lowe's Cos. (LOW). Shares of Lowe's fell 0.9%.
Toll Brothers Inc.(TOL) shares slumped 8.2% after the building
company posted a 10% fall in second-quarter profit
(http://www.marketwatch.com/story/toll-brothers-profit-dented-by-higher-charges-2018-05-22)
on higher impairment charges, and said gross margin fell.
Kohl's Corp.(KSS) sank 7% despite better-than-expected earnings
and an upbeat outlook
(http://www.marketwatch.com/story/kohls-shares-jump-after-earnings-beat-guidance-raised-2018-05-22).
Shares of Micron Technology Inc.(MU) rallied 8.7% after the
company raised its third-quarter outlook and announced a large
stock-buyback program
(http://www.marketwatch.com/story/micron-on-track-for-fresh-record-as-investors-cheer-massive-share-buyback-2018-05-22).
The gain supported chip makers overall; the PHLX Semiconductor
index rose 1.1%.
AutoZone Inc.(AZO) shares sank 9% after the company reported its
first-quarter results
(http://www.marketwatch.com/story/autozone-shares-jump-3-premarket-after-profit-blows-past-estimates-2018-05-22).
TJX Companies Inc.(TJX) shares rose 1.2% after the retailer's
quarterly earnings came above estimates
(http://www.marketwatch.com/story/tjx-cos-shares-jump-15-premarket-as-first-quarter-sales-blow-past-estimates-2018-05-22).
Read:GreenSky IPO: 5 things to know about the company seeking to
end fintech IPO lull
(http://www.marketwatch.com/story/greensky-ipo-5-things-to-know-about-the-company-seeking-to-end-fintech-ipo-lull-2018-05-21)
Sony Corp.(6758.TO), (6758.TO) shares fell 1.4% after the
Japanese multinational conglomerate said it has agreed to buy
Mubadala Investment Co.'s stake in EMI Music Publishing
(http://www.marketwatch.com/story/sony-to-buy-mubadalas-stake-in-emi-music-for-about-23-billion-2018-05-21),
in a roughly $2.3 billion deal.
Read:Netflix's new running mates: Barack and Michelle Obama
(http://www.marketwatch.com/story/netflixs-new-running-mates-barack-and-michelle-obama-2018-05-21)
What are other markets doing?
Asian markets finished mixed
(http://www.marketwatch.com/story/nikkei-pulls-back-from-3-month-high-as-asian-markets-dip-2018-05-21),
while European stocks inched higher
(http://www.marketwatch.com/story/european-stocks-inch-higher-as-italy-tensions-ease-for-now-2018-05-22).
Read:'Greek-like crisis' fears hang over Italy's markets as
populists ready government
(http://www.marketwatch.com/story/greek-like-crisis-fears-hang-over-italys-markets-as-populists-ready-government-2018-05-21)
The dollar was continuing to retrace gains on Tuesday, while the
10-year U.S. Treasury note yield
(http://www.marketwatch.com/story/treasury-yields-inch-higher-but-italian-rates-pull-back-as-politics-remain-in-focus-2018-05-22)
was hovering around 3.07% after touching a seven-year intraday high
of 3.126% on Friday
(http://www.marketwatch.com/story/government-bonds-rally-as-geopolitics-reignite-buying-10-year-retreats-from-310-2018-05-18).
(http://www.marketwatch.com/story/government-bonds-rally-as-geopolitics-reignite-buying-10-year-retreats-from-310-2018-05-18)
(http://www.marketwatch.com/story/government-bonds-rally-as-geopolitics-reignite-buying-10-year-retreats-from-310-2018-05-18)
See:Stock-market investors have fewer excuses for shunning bonds
(http://www.marketwatch.com/story/stock-market-investors-have-fewer-excuses-for-shunning-bonds-2018-05-21)
U.S. oil futures ended modestly lower
(http://www.marketwatch.com/story/oil-prices-hover-at-3-12-year-highs-on-global-supply-worries-2018-05-22)
(http://www.marketwatch.com/story/oil-prices-hover-at-3-12-year-highs-on-global-supply-worries-2018-05-22).
Read:Here's what an 'oil shock' would mean for the global
economy
(http://www.marketwatch.com/story/oil-shock-heres-what-100-crude-would-do-to-the-economy-2018-05-22)
Economic preview:Rising rates, higher gas have failed to kill
the economic expansion
(http://www.marketwatch.com/story/us-economy-charts-steady-course-despite-stronger-headwinds-2018-05-18)
Gold futures inched up 0.1% to $1,292.00 an ounce. The ICE U.S.
Dollar Index fell 0.2% to 93.530, as the pound strengthened against
the buck .
Bank of England policy maker Gertjan Vlieghe reportedly
predicted up to two interest-rate increases a year
(https://www.theguardian.com/business/live/2018/may/22/bank-of-england-governor-mark-carney-grilling-mps-rates-uk-economy-business-live),
as officials testified in front of the U.K. Treasury committee.
(END) Dow Jones Newswires
May 22, 2018 14:45 ET (18:45 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.