landsberg bennettStocks finished lower Tuesday as Chinese officials refused to confirm President Trump’s comments that the two countries are “getting back to the table.” The Dow fell 120 points, while the S&P 500 and Nasdaq Composite both lost 0.3%.

Treasuries strengthened with the yield on the 10-year note dropping six basis points to 1.48%. The significant drop in the 10-year rate leaves the Treasury yield curve inverted with two-year note trading at 1.52%. The yield on the 30-year bond also garnered attention falling below the S&P 500 dividend yield for the first time since 2009.

Ten of 11 S&P 500 sectors declined with Financial stocks leading the retreat. In corporate news, Johnson and Johnson rose 1.4% after an Oklahoma judge ordered the drugmaker to pay a significantly lighter fine than expected in the opioid trial. Philip Morris lost 7.8%, while Altria was down 4.0% on news the two companies are discussing an all-stock merger. In earnings, J.M. Smucker slid 8.2% after its quarterly figures disappointed Wall Street analysts.

On the data front, a report showed consumer confidence largely surpassed expectations, dipping to 135.1 in August from 135.8 last month, which had been the highest reading since November. The S&P CoreLogic Case Shiller release revealed home prices in its 20-City Composite increased at a 2.1% annualized pace in June, down from the prior period’s 2.4% gain. An update from the Richmond Fed showed manufacturing activity in the region improved this month. In commodities, WTI crude jumped 2.5% to $54.98/barrel, while COMEX gold gained 1.0% to $1,541.00/ounce.