US stock indexes finish mixed ahead of trade talks

The stock market capped a day of listless trading with modest losses Monday as investors focused on upcoming US-China trade talks.

The major indexes drifted between small gains and losses, though smaller-company stocks had their worst day since May. The losses erased some of the market’s solid gains from last week, when the benchmark S&P 500 closed at a record high.

The muted trading came as investors looked ahead to a highly anticipated meeting between the leadership of the United States and China later this week. The world’s two largest economies have been embroiled in a trade war that has taken the market on a volatile roller-coaster ride this year, and Wall Street is hoping for a deal.

‘‘The market right now seems to be pricing in some combination of at least a de-escalation between the US and China from a trade standpoint to the point where it doesn’t drive us into a recession,’’ said Michael Crook, head of Americas investment strategy at UBS Global Wealth Management.

The S&P 500 slipped 5.11 points, or 0.2 percent, to 2,945.35. The index is about 0.3 percent below the record high it set Thursday.

The Dow Jones industrial average rose 8.41 points, or less than 0.1 percent, to 26,727.54. The Nasdaq Composite dropped 26.01 points, or 0.3 percent, to 8,005.70. The Russell 2000 index of smaller companies slid 19.54 points, or 1.3 percent, to 1,530.08, its biggest single-day loss since May 31.

The market notched its third straight weekly gain last week and is on track for a strong monthly rebound from a steep sell-off in May. The major US stock indexes are up more than 7 percent so far this month and are holding on to gains of more than 14 percent for the year.

Investors have been reassured by statements from the Federal Reserve this month that suggest the central bank is prepared to cut interest rates in response to a slowing global economy. Even so, traders remain concerned that corporate profits might suffer should the kind of economic slowdown that would prompt the Fed to cut rates take hold.

Trade policy remains the biggest source of uncertainty looming over the market. Worries about the dispute and its potential impact on global economic growth sent the broader market on a bumpy ride during the second quarter as the tensions escalated.

Presidents Trump and Xi Jinping plan to meet at the Group of 20 summit in Japan, which starts Friday. Wall Street is again hoping the two sides can find a path to ending the trade war.

They are stalemated after 11 rounds of talks that have failed to overcome US concerns about China’s acquisition of US technology and its massive trade surplus. China denies forcing US companies to hand over trade secrets and says the surplus is much smaller than it appears.

Health care stocks accounted for a big share of the selling Monday, led by a slide in shares of pharmaceutical giant Bristol-Myers Squibb.

The stock fell after the company said it would divest its blockbuster psoriasis treatment, Otezla, as part of a push to win regulatory approval for its $74 billion buyout of Celgene. Shares in Bristol-Myers were the biggest decliner in the S&P 500, losing 7.4 percent. Celgene dropped 5.4 percent.

Consumer discretionary stocks and banks also helped pull the market lower. Ulta Beauty dropped 2.6 percent, and Capital One Financial dropped 3.1 percent.

Energy stocks also declined. The sector remains volatile as oil prices fluctuate over concerns about economic growth and rising tensions in the Middle East. Concho Resources fell 3.4 percent.

Technology companies, consumer goods makers, and materials producers were among the gainers. Western Digital rose 2.5 percent, Tyson Foods added 1.9 percent, and Newmont Goldcorp gained 2.5 percent.

Bond prices rose, sending yields lower, as investors continued to shift money into US bonds as a hedge against a possible downturn in the economy or further escalation in trade tensions. The yield on the 10-year Treasury note fell to 2.02 percent from 2.06 percent late Friday.

‘‘The pricing in the bond market right now does indicate that it wouldn’t take much to create a recession if we had some bad policy mistake either from the Fed or from a trade standpoint,’’ Crook said.

Traders welcomed news that Eldorado Resorts has agreed to buy casino operator Caesars Entertainment in a cash-and-stock deal valued at $17.3 billion.

The deal creates a casino giant with about 60 casinos and resorts in 16 states under a single name. Caesars has been struggling since emerging from bankruptcy in 2017. Billionaire investor Carl Icahn took an enormous stake in the company and pushed for big changes. Caesars surged 14.5 percent, and Eldorado fell 10.6 percent.

Energy futures finished mixed. Benchmark crude oil rose 47 cents to settle at $57.90 a barrel. Brent crude, the international standard, fell 34 cents to $64.86.

Source: Bostonglobe.com

Powered by NewsAPI.org

Keywords:

Stock market index • Stock market • Investor • Economy of China • Stock market index • Company • Stock • Financial market • Benchmarking • S&P 500 Index • Trade • Investor • Leadership • United States • China • Economy • Trade war • Roller coaster • Wall Street • Market town • China • Great Recession • Americas • UBS • Wealth management • S&P 500 Index • Stock market index • Dow Jones Industrial Average • Nasdaq Composite • Russell 2000 Index • Stock market index • Investor • Federal Reserve System • Central bank • Interest rate • World economy • Trader (finance) • Corporation • Profit (economics) • Recession • Federal Reserve System • Commercial policy • Uncertainty • Market (economics) • World economy • Economic growth • Market (economics) • Fiscal year • President of the United States • Donald Trump • Xi Jinping • G20 • Empire of Japan • Wall Street • Trade war • China • Mergers and acquisitions • United States dollar • Balance of trade • China • Company • Trade secret • Health care • Stock • Share (finance) • Share (finance) • Pharmaceutical drug • Bristol-Myers Squibb • Stock • Company • Blockbuster LLC • Psoriasis • Fiat S74 • 1,000,000,000 • Leveraged buyout • Celgene • Stock • Bristol-Myers Squibb • S&P 500 Index • Celgene • Luxury goods • Stock • Bank • Marketing • Lower Manhattan • Ulta Beauty • Capital One • Energy • Stock • Economic sector • Volatility (finance) • Price of oil • Economic growth • Middle East • Concho Resources • Western Digital • Tyson Foods • Goldcorp • Price • Yield (finance) • Investment • Money • United States Treasury security • Hedge (finance) • Recession • Economy • Trade • Yield (finance) • United States Treasury security • Bond market • Market town • Recession • Trade • Eldorado Resorts • Casino • Management • Caesars Entertainment Corporation • Cash • Stock • Contract • Contract • Casino • Bankruptcy • Billionaire • Investor • Carl Icahn • Equity (finance) • Cadillac Eldorado • Futures contract • Benchmark (crude oil) • United States dollar • Barrel (unit) • Brent Crude • International Organization for Standardization • United States dollar •