US STOCKS-Wall Street drops after China cancels trip to Montana farmland

Reuters

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    * China delegates scrap U.S. farm visit, indexes fall
    * Trade-sensitive tech sector drops
    * Netflix drags after CEO comments
    * Indexes end: Dow -0.59%, S&P 500 -0.49%, Nasdaq -0.80%    
 

 (New throughout, updates prices, market activity and comments
to close)
    By Noel Randewich
    Sept 20 (Reuters) - Wall Street dropped on Friday, and also
finished the week lower, after a Chinese agriculture delegation
canceled a planned visit to Montana, dampening optimism about
U.S.-China trade talks.
    The delegates, who had been set to visit U.S. farm states
next week,  will return to China sooner than originally
scheduled, the Montana Farm Bureau said.  urn:newsml:reuters.com:*:nL2N26B13K
    Major stock indexes fell into negative territory after the
cancellation, which came as trade talks were held in Washington
and U.S. President Donald Trump said he wanted a complete trade
deal, not just an agreement for China to buy more U.S.
agricultural goods.  urn:newsml:reuters.com:*:nL2N26B12B Before the news, the S&P 500
and Dow industrials were in positive territory.
    For months, Wall Street has bounced up and down with signs
of improvement or deterioration in trade talks, often based on
comments or tweets from Trump, a cycle investors have grown
accustomed to.
    "In this case, it's a bit more concerning because it's China
making the decision, rather than Trump," said Willie Delwiche,
markets strategist at Baird in Milwaukee.
    Trade optimism in recent weeks helped elevate the S&P 500
 .SPX  to just shy of its all-time high hit in July. 
    Eight of the 11 major S&P sectors fell on Friday. The S&P
500 consumer discretionary index  .SPLRCD  and tariff-sensitive
S&P 500 information technology index  .SPLRCT  declined the
most, down 1.2% and 1.1%, respectively. The Philadelphia chip
index  .SOX  slid 1.8%.
    The Dow Jones Industrial Average  .DJI  fell 0.59% to end
the week at 26,934.46 points, while the S&P 500  .SPX  lost
0.49% to 2,991.99.
    The Nasdaq Composite  .IXIC  dropped 0.8% to 8,117.67.
    For the week, the S&P 500 fell 0.52%, the Dow lost 1.05% and
the Nasdaq declined 0.72%. 
    Netflix tumbled 5.5% after CEO Reed Hastings made comments
underscoring growing costs and rising competition from Walt
Disney Co  DIS.N , Apple Inc  AAPL.O  and other video streaming
services.  urn:newsml:reuters.com:*:nL2N26B0VB  urn:newsml:reuters.com:*:nL3N26B2MQ
    Adding to Netflix's woes, Evercore ISI said recent data
painted an uncertain picture of the company's international
subscriber growth.
    The S&P 500 healthcare index  .SPXHC , which has been the
worst performing S&P sector this year, clocked the biggest gain
among the 11 major sectors, up 0.6%.
    Merck & Co  MRK.N  gained 1.4% after the company's drugs
Pifeltro and Delstrigo received FDA approval for use in certain
adult patients with HIV-1 who are "virally suppressed."
    Roku Inc  ROKU.O  slumped 19.2% after Pivotal Research
started coverage of its shares with a "sell" rating. 
    Xilinx Inc  XLNX.O  dropped 6.8% after Chief Financial
Officer Lorenzo Flores said he would step down, prompting Bank
of America Merrill to downgrade the chipmaker to "neutral."
    Advancing issues outnumbered declining ones on the NYSE by a
1.01-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
    The S&P 500 posted 22 new 52-week highs and no new lows; the
Nasdaq Composite recorded 47 new highs and 51 new lows.  
    With investors unwinding positions in futures and options
contracts before they expire, volume on U.S. exchanges was 9.8
billion shares, compared with a 7.1 billion-share average over
the last 20 trading days.

 (Additional reporting by Ambar Warrick and Medha Singh in
Bengaluru; Editing by Steve Orlofsky and David Gregorio)
 ((noel.randewich@tr.com; Twitter handle: @randewich  (415) 677
2542; Reuters Messaging:
noel.randewich.thomsonreuters.com@reuters.net))

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