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Wall Street pares gains as GE, tech stocks drag

Posted by: Admin | Posted on: October 23rd, 2017 | 0 Comments

(Reuters) – U.S. stocks gave up early gains in late morning trading on Monday, with losses in GE and technology shares weighing on the Wall Street indexes.

General Electric (GE.N) tumbled 5.4 percent after a bunch of brokerages cut their price targets on the stock, citing higher chances of a dividend cut at the industrial conglomerate.

The FAANG stocks – Facebook (FB.O), Amazon (AMZN.O), Apple (AAPL.O), Netflix (NFLX.O) and Alphabet (GOOGL.O) – slipped about 1 percent, keeping the Nasdaq in the red.

Still, the indexes were near their all-time highs on a steady stream of upbeat third-quarter earnings and hopes that President Donald Trump’s tax plans may move forward after the Senate’s approval of a budget resolution on Friday.

Nearly three-quarters of the 97 SP 500 companies that have reported earnings so far have beaten expectations.

“Earnings is the dominant theme of the market, with talks of tax reforms swirling around on the outside,” said Michael Antonelli, managing director of institutional sales trading at Robert W. Baird in Milwaukee.

“It’s going to be all about corporate commentary and how they are looking at things in the next three to six months.”

World stocks were lifted to an all-time high after Japanese Prime Minister Shinzo Abe’s election victory raised hopes of continued market friendly monetary policies and economic reforms.

Investors are also waiting for news on the next Federal Reserve chief. Trump said he would make his choice to lead the Fed soon and was still considering at least three people: Fed Governor Jerome Powell, Stanford University economist John Taylor and Yellen.

At 11:11 a.m. ET, the Dow Jones Industrial Average .DJI was up 23.75 points, or 0.1 percent, at 23,352.38, the SP 500 .SPX was down 0.3 points, or 0.01 percent, at 2,574.91 and the Nasdaq Composite .IXIC was down 13.42 points, or 0.2 percent, at 6,615.63.

Seven of the 11 major SP indexes were lower, led by losses in the industrial index .SPLRCI.

Arconic (ARNC.N) slumped 7.2 percent after the U.S. specialty metals maker named a GE veteran as chief executive.

Hasbro (HAS.O) dipped nearly 10 percent after the toymaker’s forecast for the holiday season fell below estimates as Toys‘R‘Us bankruptcy began to hurt its operations. Shares of Mattel (MAT.O) also fell 3.44 percent.

Declining issues outnumbered advancers on the NYSE by 1,570 to 1,186. On the Nasdaq, 1,668 issues fell and 1,092 advanced.

Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva

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