Declines on Wall Street, Thursday amid more signs of strain on the factory floor and worries the trade war truce between the U.S. and China is on shaky ground.
All three major indices finished lower but well-above the lows of the day.
Manufacturing activity in the midwest fell in October to its deepest slump in four years, according to the Chicago Purchasing Managers Index.
The global manufacturing sector has been severely hampered by the 15-month trade war between Washington and Beijing.
Sam Stovall of CFRA Research makes the connection between Wall Street and trade: SOUNDBITE (ENGLISH) SAM STOVALL, CHIEF INVESTMENT STRATEGIST, CFRA RESEARCH, SAYING: "It's sort of a cascading effect, in the sense of about 50 percent of the revenues for the S&P come from overseas operations.
If you have a problem with a majority of your foreign markets, then that's going to artificially depress earnings and depressed earnings give less of a reason to want to bid up share prices.
So trade is the fulcrum of this see-saw." Thursday's reports sparked jitters ahead of Friday's important update on hiring.
Traders were further spooked by a Bloomberg report that Chinese officials doubt whether a wide-ranging long-term trade pact with Washington is possible.
Meanwhile, trying to keep confidence alive, President Trump said on Twitter, that after Chile canceled the APEC meeting because of domestic unrest, the U.S. and China will soon announce a new location where they will sign, what is being called phase one of their trade deal.
And that wasn't the only tweet from the President.
He once again criticized Federal Reserve ChairmanJerome Powell for keeping rates too high and for putting the U.S. at a "competitive disadvantage." Trump is still unhappy even though the Fed has cut rates three times this year.
China's foreign ministry said on Monday that Beijing hoped to have a "healthy and stable relationship development" with U.S., after a source said President-elect Joe Biden will nominate Antony Blinken as secretary of state.
President-elect Joe Biden is planning to nominate Janet Yellen to head the Treasury Department. Business Insider reports if the US Senate confirms Yellen, she will be the first woman to hold the job. Yellen served as Fed Chair during President Barack Obama's second term, from 2014 to 2017. President Donald Trump replaced her with Jerome Powell as head of the Fed.
U.S. employers hired the fewest workers in five months in October, offering the clearest evidence yet that the end of fiscal stimulus and exploding new COVID-19 infections were sapping momentum from the economic recovery, but the jobless rate fell as well. Conway G. Gittens reports.
[NFA] U.S. House of Representatives Speaker Nancy Pelosi on Thursday said legislation to help airline companies survive the fallout could only move through Congress with guarantees that lawmakers will work on a more comprehensive aid bill to help the unemployed, small businesses and revenue-depleted state and local governments. Conway G. Gittens reports.
NEW YORK (Reuters) - U.S. stocks fell on Thursday, with the S&P 500 pulling back from its latest record high as conflicting signals surrounding a possible trade deal between the United States and China..
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