S&P 500 logs longest losing skid in about 7 weeks

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Micron boost tech shares after better-than expected guidance

  • Micron’s stock popped about 13%, leading gains for chip makers
  • Mnuchin told CNBC ‘we were about 90% of the way there’ on China trade deal
  • Health care, utilities stocks fell about 1.1%, leading markets lower.

Stocks closed mostly lower Wednesday, as investors grew increasingly skeptical that a U.S.-China trade deal is in the offing, though technology shares were supported by optimism related to Micron Technology’s better-than expected guidance.

How did the major benchmarks fare?

The Dow Jones Industrial Average DJIA, -0.04% fell 11.4 points, or less than 0.1%, to 26,536.82, but had been as high as 26,669, while the S&P 500 SPX, -0.12%  fell 3.6 points, or 0.1%, to 2,913.78, representing a fourth straight decline for the index, its longest string of loses since a similar downturn ended May 9, FactSet data show. The Nasdaq Composite Index COMP, +0.32% rose 25.2 points, or about 0.3%, to 7,909.97, halting a three-session stumble.

What drove the market?

Comments from U.S. Treasury Secretary Steven Mnuchin suggesting that a Sino-American trade resolution had been near in an earlier round of talks, provided an early lift to markets. “We were about 90% of the way there (with a deal) and I think there’s a path to complete this,” he told the financial network in Bahrain.

The U.S. Treasury Secretary said he was “hopeful” that a deal could be struck as the market awaits a sideline conversation between President Donald Trump and Chinese President Xi Jinping at the Group of 20 gathering in Osaka, Japan, which kicks off on Friday.

Optimism over the prospects for a trade war detente tempered during the session, however.

“I am not optimistic of anything of significance to be achieved for the meetings in Japan this week,” said Mariann Montagne, a portfolio manager at Gradient Investments, in a telephone interview.

“Mnuchin or members of his team have used that phrase several times over the past several months,” she told MarketWatch. “I think people are getting too excited.”

Read more: https://www.marketwatch.com/story/stocks-set-to-snap-back-as-mnuchin-says-us-was-90-of-the-way-there-on-china-trade-deal-2019-06-26?mod=us-markets

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