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Home / Business / Stock prices fall as investors wipe China's stimulus and increase the number of eye jobs

Stock prices fall as investors wipe China's stimulus and increase the number of eye jobs



Stock prices fell Wednesday morning as investors were unimpressed by developments in trade negotiations between Washington and Beijing and China's recent round of Stimulus Action.

What are the stock indices doing?

The Dow Jones Industrial Average

DJIA, -0.53%

fell 60 points or 0.2% to 25,749, while the S & P 500 index

SPX, -0.54%

fell 8 points or 0.3% at 2789. The Nasdaq Composite Index

COMP, -0.71%

fell 32 points or 0.4% to 7,545.

What's in the Economic Calendar

Analysts said market participants expected new catalysts to drive trade Encouraging prospects for trade talks between the US and China to prevent further increases in tariffs. Investors had received little consolation from a new series of stimulus measures announced by Beijing on Tuesday to shore up the world's second-largest economy, which is suffering from an economic slowdown, exacerbated by the US-Chinese trade conflict.

Trump administration officials this week have offered positive reviews of trade talks. A Bloomberg report on Wednesday said President Donald Trump presses US trade negotiators to soon terminate a contract with China to fuel a market rally.

What is in the economic calendar?

The ADP estimates that the private sector created 183,000 new jobs in February, which is estimated at 187,500 by FactSet. Markets pay more attention to the government's official job report due on Friday. MarketWatch surveyed economists expect job growth to slow from 304,000 in January to 178,000 in February.

The US trade deficit rose to a 10-year high of $ 621 billion in 2018, the Commerce Department reported Wednesday. 19659009] Other available data include the Federal Reserve's so-called Beige Book Collection, with anecdotal information about the current economic conditions in the 12 districts of the Central Bank at 2:00 pm.

It is also expected that investors will hear from Cleveland Fed President Loretta Mester and New York Fed President John Williams. Mester, who is not a voting member of the Federal Open Market Committee this year, will be appearing in Cleveland at 12:00 am while Williams, a voter, talks about the economic outlook of the Economic Club of New York at 12:10 [19659002] What do analysts say?

"Investors recognize that the market has risen dramatically since Christmas Eve and they take this opportunity to rebalance their portfolios," said Michael Reynolds, investment strategy analyst Glenmede told MarketWatch.

Regarding ADP job numbers, which are below the estimates, Mike Loewengart, E-Trade Investment Strategist, wrote in an e-mail: "Although these messages may affect some, it is important to take a step back and look to remember two things. First, this is just one of many data points for jobs – this weakness is indeed an outlier over other indicators. "

" Secondly, the current labor market is seen to be the strongest in years, as it has been for years. ", He added." [Investors] should not throw the baby out with the bath water, especially with more job data on the horizon this week. "

" With much hope for a US-China trade agreement in and The risks of a no-deal Brexit until March 29 were associated with high prices, a new topic must be brought to the table, "said Lukman Otunuga Research analyst at FXTM, in a statement. "Although the geopolitical risks continue to be in the background, they seem self-contained for the time being, while ongoing concerns about global growth are slowly becoming old news."

Which stocks are in focus?

Shares of Aon PLC [19659022] AON, + 4.03%

rose 4.3% on Wednesday after the insurance and services company Willis Towers Watson Public Ltd , Co. did not pursue a business combination.

WLTW, -6.30%

shares, of which 5.7% have fallen.

Williams Cos.

WMB, -0.47%

Equities fell 0.2% on Wednesday after President and CEO Alan Armstrong delivered a speech to the Raymond James & Associates Annual Institutional Conference. The share has risen by 24.1% since the beginning of the year.

Shares of General Electric Co .

GE, -7.43%

was in focus after CEO Larry Culp told a broker-sponsored investor conference on Tuesday afternoon that free cash flow in the industrial business would be negative in 2019. The stock lost 5.4% Wednesday morning.

Dollar Tree Inc. .

DLTR, + 3.06%

shares rose 1.8% after the discount retailer reported an increase in sales in the same store over the Wall Street consensus in the fourth quarter, despite the fact that it was responsible for the 2019 forecast earnings below analyst estimates. according to FactSet.

Shares of Abercrombie & Fitch Co . rose 20.6% on Wednesday morning after the apparel retailer surpassed its quarterly earnings and sales expectations in the fourth quarter and delivered a positive outlook. The stock is well on its way to reaching its highest level since August 30.

How are the markets traded elsewhere?

Asian equities closed higher on Wednesday, with the Shanghai Composite Index higher

SHCOMP, + 1.57%

ending the day by 1.6% and the Hang Seng Index in Hong Kong

HSI, + 0.26%

closed 0.3% higher. Japan's Nikkei 225

NIK, -0.60%

lost 0.6% on Wednesday.

European stocks fell on Wednesday and the Stoxx Europe 600 lost 0.1%.

On the raw materials crude oil

CLJ9, -1.01%

declined 1.2% on Wednesday, while the price of gold fell

GCJ9, + 0.22%

and the value of the US dollar

DXY, -0.06%

rose more strongly.

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