Investing.com - Stocks pulled back slightly Monday after concerns emerged that the U.S.-China trade deal announced Friday might not be as solid as first thought.
President Donald Trump announced a "very substantial phase one" agreement, but nothing was in writing yet. Bloomberg News reported Monday there are still a number of points not yet resolved.
While the Nasdaq managed to hold above 8,000 for a second day in a row, the S&P 500 finished under 3,000 for a 17th-straight day and is 2% below its July peak of 3,027.98. The Dow is 2.2% below its peak of 27,399. The Nasdaq is 3.5% below its all-time high.
Apple (NASDAQ:AAPL) and Nike (NYSE:NKE) hit new highs. Apple briefly was the world's most valuable company, ahead of Microsoft (NASDAQ:MSFT), but fell back into a tie by the close. Both ended down slightly with market caps of $1.066 trillion.
The wariness that pervaded the markets resulted in fewer stocks hitting new highs, compared with stocks hitting new lows.
Materials, consumer staples stocks and utilities were the weakest S&P 500 sectors. Real estate and financials were higher.
The third-quarter-earnings season begins Tuesday with reports from a host of financial companies, including JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS). There are worries that slowing global growth will cut into profit growth.
Markets in U.S. government bonds were on hold Monday for Columbus Day.
Stocks had rallied strongly last week as Chinese and U.S. negotiators met in Washington, D.C. and Trump had Vice Premier Liu He, the leader of the Chinese team, to a White House meeting on Friday afternoon.
But a 507-point gain for the Dow on Friday was cut by nearly 40% in the last half hour of trading as investors sold the news of the projected deal. It included some relief on tariffs set to be imposed this week and a Chinese agreement to buy $40 billion to $60 billion in U.S. farm products, especially pork and and soybeans.
Not resolved were the key issues of access to Chinese markets and how to crack down on technology theft. And China wants a tariff imposition, set for December, canceled.
Trump Administration officials said they were hopeful the issues could be resolved soon.
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