US STOCKS-S&P 500, Dow slip as trade-fuelled rally pauses

Reuters

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    * Trump says has not agreed to roll back tariffs
    * Disney rises on revenue, profit beat
    * Gap falls after surprise CEO exit
    * Indexes: Dow falls 0.25%, S&P off 0.06%, Nasdaq up 0.12%

 (Changes comment, updates market action)
    By Arjun Panchadar and Agamoni Ghosh
    Nov 8 (Reuters) - The S&P 500 and Dow Jones indexes stalled
on Friday after a record run, as U.S. President Donald Trump
contradicted reports that the United States and China would roll
back existing tariffs.
    However, the Nasdaq eked out gains on the back of a rise in
shares of Facebook Inc  FB.O  and Microsoft Corp  MSFT.O .
    The benchmark S&P 500 and blue-chip Dow had closed at
all-time highs on Thursday after officials said both countries
had agreed to roll back tariffs on each others' goods in a
"phase one" trade deal if it is completed.
    However, Trump said on Friday he had not agreed to roll back
the tariffs, although Beijing would like him to do so. The news
sent all the three major U.S. stock indexes sharply lower, but
the S&P and Nasdaq quickly recovered to trade near flat.
 urn:newsml:reuters.com:*:nW1N26G02B
    "Let's not forget that in the past we have come so close to
a trade agreement and at the last minute there has been a
pullback," said Michael Geraghty, capital market strategist at
Cornerstone Capital Group in New York.
    "The president is very set in his way and the Chinese have
their viewpoint too, so it seems it's going to take a bit longer
for the trade deal to be nailed down."
    Seven of the 11 major S&P 500 sectors were trading lower,
with the energy sector shedding 1.4% as oil prices fell.  O/R 
    The financials sector  .SPSY  was also lower as the
benchmark U.S. 10-year Treasury yield came down from the
three-month high hit on Thursday.  US/ 
    Still, the S&P 500 was on track for its fifth straight week
of gains, while the Nasdaq was eyeing its sixth consecutive
weekly rise, partly propelled by a rosy third-quarter earnings
season.
    Walt Disney Co  DIS.N  gained 4% as its popular theme parks
and a remake of "The Lion King" lifted earnings, and the company
also spent less than it had projected on its online streaming
service, Disney+.  urn:newsml:reuters.com:*:nL3N27N57T
    At 11:34 a.m. ET the Dow Jones Industrial Average  .DJI  was
down 70.35 points, or 0.25%, at 27,604.45, the S&P 500  .SPX 
was down 1.95 points, or 0.06%, at 3,083.23. The Nasdaq
Composite  .IXIC  was up 10.05 points, or 0.12%, at 8,444.57.
    Dragging on the Dow were losses in shares of trade-sensitive
industrials 3M Co  MMM.N  and Boeing Co  BA.N .
    Among other stocks, Gap Inc  GPS.N  fell 6.5% after it said
Chief Executive Officer Art Peck would leave the company, a
surprise exit in the middle of a restructuring. The apparel
retailer also slashed its full-year earnings forecast.
 urn:newsml:reuters.com:*:nL3N27N5HY
    Energy drinks maker Monster Beverage Corp  MNST.O  rose 3.7%
after posting a better-than-expected third-quarter profit and
announcing a $500 million share buyback plan.  urn:newsml:reuters.com:*:nASC0AJ6I
    Declining issues outnumbered advancers for a 1.12-to-1 ratio
on the NYSE. Advancing issues outnumbered decliners for a
1.07-to-1 ratio on the Nasdaq.
    The S&P index recorded 17 new 52-week highs and two new
lows, while the Nasdaq recorded 44 new highs and 65 new lows.

 (Reporting by Arjun Panchadar and Agamoni Ghosh in Bengaluru;
Editing by Maju Samuel and Shounak Dasgupta)
 ((Arjun.Panchadar@thomsonreuters.com; within U.S.
+1-646-223-8780; outside U.S. +918067492767;))

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