By Medha Singh
(Reuters) – U.S. stocks dipped on Tuesday, extending a selloff from the prior session, as investors waited for developments on the U.S.-China trade talks, but a clutch of upbeat quarterly reports from retailers helped limit losses.
U.S. Secretary of State Mike Pompeo said in a media interview that President Donald Trump will reject any trade deal that is not perfect, but added that the United States will still keep working on an agreement.
The , which closed last week above the significant 2,800-point mark for the first time since Nov.8, failed to hold on to that level on Monday despite a solid start on the back of a report that a trade deal could happen as early as March end.
The and the S&P 500 posted their biggest drop in nearly a month in the previous session.
“Investors are trying to get sense of whether the selloff from yesterday will continue or if it is a one-day event,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
“After the recent run in markets this year, I think it warrants some cautiousness.”
The S&P 500 has climbed about 11 percent in 2019 and is now about 5 percent away from its Sept.20 record closing high, helped by a dovish stance from the Federal Reerve and on hopes the United States and China would soon hammer out a trade solution.
Target Corp (NYSE:) jumped 5.1 percent, while Kohl’s Corp gained 5.8 percent after the retailers forecast annual earnings above estimates.
Their upbeat results along with Amazon.com (NASDAQ:) Inc’s 0.33 percent rise pushed the consumer discretionary 0.49 percent higher, the most among S&P sectors. The retailing index rose 0.59 percent.
At 10:03 a.m. EDT the Dow Jones Industrial Average was down 8.17 points, or 0.03 percent, at 25,811.48, the S&P 500 was down 2.57 points, or 0.09 percent, at 2,790.24 and the was down 7.31 points, or 0.10 percent, at 7,570.25.
Eight of the 11 major S&P sectors were trading lower, with the financial sector’s 0.5 percent fall leading the losses.
Among other stocks, Ctrip.com International climbed 14.6 percent after the Chinese travel website beat quarterly revenue.
Align Technology Inc’s shares tumbled 6.7 percent, the most among S&P 500 companies after the orthodontic device maker said it expects to take a charge in its current quarter.
On the macro front, ISM’s non-manufacturing activity index showed a reading of 59.7 in February, better than estimates of 57.3.
Another report showed new U.S. single-family homes rose to a seven-month high in December, but November’s outsized jump was revised lower, pointing to continued weakness in the housing market.
Declining issues outnumbered advancers for a 1.35-to-1 ratio on the NYSE and for a 1.43-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and one new low, while the Nasdaq recorded 13 new highs and 16 new lows.
(This story corrects syntax in headline).