US STOCKS-Wall St flat as tech gains soothe tariff nerves

  • Reuters
  • Stock Market News
US STOCKS-Wall St flat as tech gains soothe tariff nerves
Credit: © Reuters.

* Apple slips on threat of import tariffs on iPhones

* Boeing (NYSE: BA ), Caterpillar fall and weigh on industrial stocks

* UTX biggest loser on S&P 500

* Dow dips 0.12 pct, S&P up 0.08 pct, Nasdaq up 0.13 pct (Changes comment, updates prices)

By Amy Caren Daniel

Nov 27 (Reuters) - U.S. stocks were flat on Tuesday as technology shares recovered from their session lows, helping calm nerves that were triggered by President Donald Trump's latest tariff threat.

Trump said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent at the start of 2019. is due to meet Chinese President Xi Jinping at the G20 Summit in Buenos Aires this week, but his latest comments have given little hope about the two countries resolving their trade dispute, which has battered financial markets this year.

The trade-sensitive industrial sector .SPLRCI fell 0.76 percent, with Boeing Co BA.N , the single largest U.S. exporter to China, down 0.3 percent and Caterpillar Inc (NYSE: CAT ) CAT.N 0.9 percent.

"Tariff issues are the biggest factor in the markets, and will continue to be for a while, especially, given the meeting on Friday," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE: SCHW ) in Austin, Texas

Apple Inc AAPL.O was off 0.4 percent. Its shares had fallen as much as 2.1 percent earlier in the session after Trump said tariffs could be placed on the company's laptops and iPhones imported from China.

Philadelphia SE Semiconductor index .SOX rose 0.90 percent, reversing earlier losses. Maxim Integrated MXIM.O led the gains with a 5.5 percent rise on news that it was set to join the S&P 500.

The recovery was also helped by a 1.5 percent rise in Netflix Inc NFLX.O and a 0.5 percent gain in Amazon.com Inc AMZN.O .

"A lot of these bounces you see are from significant oversold conditions," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

At 11:56 a.m. EDT the Dow Jones Industrial Average .DJI was down 30.01 points, or 0.12 percent, at 24,610.23, the S&P 500 .SPX was up 2.15 points, or 0.08 percent, at 2,675.60 and the Nasdaq Composite .IXIC was up 9.06 points, or 0.13 percent, at 7,090.92.

Federal Reserve Vice Chairman Richard Clarida said the central bank should continue to gradually raise interest rates, but it is "especially important" to closely monitor new economic data as monetary policy is getting close to a neutral stance. Chairman Jerome Powell is scheduled to speak on Wednesday and his commentary will be closely watched for further clues on the path of interest rate hikes and the health of the economy in the face of rising trade tensions.

United Technologies Corp (NYSE: UTX ) UTX.N tumbled 5.9 percent, the most on the benchmark S&P 500 index, after its plan to split into three companies failed to impress investors.

Declining issues outnumbered advancers for a 1.52-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.47-to-1 ratio on the Nasdaq.

The S&P index recorded two new 52-week highs and four new lows, while the Nasdaq recorded 13 new highs and 91 new lows.

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