Wall Street erases losses, helped by bank and energy stocks2 min read . Updated: 02 Jan 2019, 10:32 PM IST
All 11 major S&P sectors were lower in early trading, with declines in the technology and healthcare indexes weighing the most on the market
US stocks were flat on Wednesday morning, clawing back from losses of more than 1 percent earlier, helped by energy stocks as oil prices reversed earlier losses and bank stocks as 10-year US treasury yields moved off a near year-low.
At 11:22 a.m. ET the Dow Jones Industrial Average was down 12.01 points, or 0.05 percent, at 23,315.45, while the S&P 500 was up 0.83 points, or 0.03 percent, at 2,507.68.
The Nasdaq Composite was up 18.73 points, or 0.28 percent, at 6,654.01.
Earlier, US stocks started the new year with a more than 1% decline on Wednesday, as weak data in Asia and Europe confirmed fears of a global economic slowdown while the US government shutdown dragged on.
All 11 major S&P sectors were lower in early trading, with declines in the technology and healthcare indexes weighing the most on the market. All 30 of the Dow Industrial components were in the red.
China’s factory activity contracted for the first time in 19 months in December, hit by the Sino-U.S. trade war, with the weakness spilling over to other Asian economies. Euro zone manufacturing activity dropped for the fifth month and barely avoided contraction.
The grim readings come ahead of the closely watched US manufacturing survey on Thursday, payrolls data on Friday and the US earnings season later this month, which is expected to show corporate profit shrunk in the October-December quarter.
“Increasing evidence of China’s economy weakening further has sent chills throughout global markets. This fear has been a depressing factor for the markets," Peter Cardillo, chief market economist at Spartan Capital Securities, said in a client note.
At 9:56 a.m. ET, the Dow Jones Industrial Average was down 259.33 points, or 1.11%, at 23,068.13, the S&P 500 was down 27.61 points, or 1.10%, at 2,479.24 and the Nasdaq Composite was down 79.29 points, or 1.20%, at 6,555.98.
The tech index slipped 1.15%, with Microsoft Corp and Apple Inc down nearly 2%. Amazon.com Inc and Netflix Inc fell over 1% to drag the consumer discretionary sector down by 0.90%.
Healthcare, 2018’s best performing sector, dropped 1.61%, while energy, last year’s worst performing sector, fell 0.94% as concerns about an economic slowdown also hit oil prices.
A low appetite for risk sparked demand for US Treasuries, sending yields on 10-year debt to a 12-month low of 2.6470%.
Meanwhile, the US Congress is set to reconvene with no signs of a workable plan to end a 12-day-old partial shutdown and Trump not budging on his demand for $5 billion to fund a border wall. A Democrat plan to approve a two-part spending package does not include these funds.
Tesla Inc sank 8.6% after the electric car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States in response to the loss of a green tax credit.
Declining issues outnumbered advancers for a 4.22-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and three new lows, while the Nasdaq recorded three new highs and 44 new lows.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)