US stocks close mixed amid trade tensions, earnings

New York: US stocks ended mixed on Wednesday as investors remained concerned about trade tensions between the US and China.

The Dow Jones Industrial Average fell 22.45 points, or 0.09 percent, to 26,007.07. The S&P 500 rose 2.21 points, or 0.08 percent, to 2,883.98. The Nasdaq Composite Index increased 29.56 points, or 0.38 percent, to 7,862.83, Xinhua reported.

Equities plunged Wednesday shortly after the opening bell, with the Dow shedding nearly 600 points. All three major indexes pared losses in the afternoon session with the S&P 500 and the Nasdaq ending the day at green territory.

Five of the 11 primary S&P 500 sectors declined. Financials and energy sectors shed 1.21 percent and 0.76 percent, respectively, the top two laggards. Materials and consumer staples sectors rose 1.32 percent and 1.16 percent, leading the gainers.

Investors remained concerned that the US-China trade tensions could escalate and affect an already slowing global economy.

US President Donald Trump tweeted last Thursday that he would place an additional 10 percent tariff on the remaining $300 billion worth of Chinese imports starting on September 1.

Analysts said the US economy would be more directly impacted since the new tariff would target retail items along with other consumer goods.

The threatened tariff will also drag on corporate confidence, capital expenditures and global growth in the near term, Morgan Stanley strategists said in a note.

In corporate news, Disney shares lost more than 5 per cent on weaker-than-expected quarterly earnings results.

The company reported earnings per share of $1.35 and revenue of $20.25 billion on Tuesday after market close, both missing analysts’ expectations.