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US stocks end mixed amid trade talks, shutdown angst
NEW YORK, Dec 12, 2018 (BSS/AFP) – Wall Street stocks finished near flat
following another choppy session characterized by positive sentiment on trade
conflicts but marred by President Trump’s threat of a government shutdown.
The Dow Jones Industrial Average ended down 0.2 percent at 24,370.24.
The broad-based S&P 500 slipped less than 0.1 percent to 2,636.78, while the
tech-rich Nasdaq Composite Index added 0.2 percent at 7,031.83.
US stocks opened higher after top Chinese and American negotiators held
telephone conversations to set a timetable of trade talks and Trump said on
Twitter that concrete progress was imminent.
Investors were also encouraged by reports that China agreed to cut tariffs
on US autos to 15 percent from 40 percent.
But stocks tumbled into the red in the early afternoon Trump’s White House
meeting with congressional Democratic leaders who refused to support Trump’s
demand for $5 billion he wants to build a wall between Mexico and the United
States.
“If we don’t get what we want one way or the other…I will shut down the
government,” an incensed Trump told Democratic leaders Nancy Pelosi and Chuck
Schumer. “I am proud to shut down the government for border security.”
Karl Haeling of LBBW said government shutdowns had not historically had a
major impact on the US stock market.
“It certainly did not inspire any confidence that the people who are the
top leaders of our country could engage in such in such childish behavior,”
Haeling said.
Haeling said there was still hope US stocks could rally into the end of the
year but there were “a lot of underlying concerns” among investors.
Banking shares were under pressure amid anxiety over the global economic
outlook. Shares of JPMorgan Chase, Citigroup and Wells Fargo all lost one
percent or more.
Google parent Alphabet added 1.2 percent after Google Chief Executive
Sundar Pichai defended the company’s data collection practices and rejected
Republican accusations the platform is biased against conservatives.
BSS/AFP/SR/1810 HRS