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Stocks finished lower Tuesday. The Dow dropped 12 points to 25952, while the S&P 500 lost 4 points to 2896. The Nasdaq Composite was down 18 points to 8091.
The major averages declined amid lingering trade uncertainty. In geopolitical news, the U.S. and Canada are set to resume negotiations for a new trade pact tomorrow. Meanwhile, the U.S. is expected to implement a 25% tariff on an additional $200 billion of Chinese imports on Thursday. On the data front, an update from the ISM showed the pace of manufacturing accelerated the most since May 2004 in August. Separately, a release revealed construction spending rose 0.1% in July, rebounding from the prior month’s 1.1% decline.
Seven of 11 S&P 500 sectors closed in negative territory with Telecom shares leading decliners. Verizon dropped 2.2% to $53.19 following a rating downgrade. Tech stocks also lagged with Facebook falling 2.6% to $171.16 on the heels of an analyst downgrade. Consumer Discretionary shares advanced with Amazon climbing 1.3% to $2,039.51, becoming the second publicly traded U.S. company to reach $1 trillion in market-cap. Financials outperformed amid rising Treasury yields.
Breadth was negative on issues by 2:1 on the NYSE and 6:5 on the Nasdaq. Composite NYSE volume was more than 4.2 billion shares.
Treasuries declined with the yield on the 10-year note up six basis points to 2.90% following strong manufacturing data and an influx of corporate debt supply. In commodities, WTI crude fell 0.8% to $69.25/barrel. COMEX gold lost 0.7% to $1,193.50/ounce amid a stronger dollar.