* Indexes marginally higher; Apple pares losses
* United Tech decline weighs on Dow
* Materials, industrials weak; defensives outperform
Nov 27 - Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Chuck Mikolajczak. Reach him on Messenger to share your thoughts on market moves: charles.mikolajczak.thomsonreuters.com@reuters.net
STEEL ETF: HEAVY ON THE CHARTS (1400 EST/1900 GMT)
The VanEck Vectors Steel ETF SLX.P is down more than 2 percent Tuesday, hitting its lowest level since July 2017. (Click on chart below) This as trade tensions with China simmer. amid recent trade disputes, steel stocks have struggled. Despite the SLX advancing to multi-year highs earlier this year, action ultimately soured after President Trump first announced tariffs in early March. Highlighting the extent of the group's underperformance, the SLX is now down about 16 percent year-to-date. This while the SPDR S&P 500 ETF (NYSE:SPY) Trust SPY.P trades essentially flat.
Of note, the SLX has exposure to both U.S. and foreign-based steel stocks. About 65 percent of the ETF's weighting was in foreign companies at the end of October vs. 35 percent in the U.S.
As a group, the U.S. companies have outperformed the foreign companies this year with much of that rise coming in wake of the initial tariff announcement. That said, the ratio of the ETF's U.S./foreign holdings topped in early September, and has since stumbled.
In any event, the SLX is trending down and appears on track to test its 200-WMA (now about $35.93). This just ahead of its May 2017 trough ($35.00). These levels are about 7-10 percent below the last price.
(Terence Gabriel)
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STOCKS DRIFTING LOWER AFTER BRIEF MOVE GREEN (1244 EST/1744 GMT)
Major indexes continue to drift downward after hitting a session high around 11 a.m. EST, but are well off session lows as Apple AAPL.O has pared initial declines from the open.
Still, jitters around trade abound ahead of the G20 meeting later this week, after President Trump once again rattled cages by saying he expected to raise tariffs on $200 billion in Chinese goods along with the threat of additional tariffs on all remaining imports from China. .SPLRCI were hit by the double-whammy of trade worries along with a sharp drop in United Tech UTX.N after it announced a plan to separate into three separate companies. tariff threat, along with a climb in the dollar, also weighed on metals prices such as copper and sent the materials sector .SPLRCM lower as the worst performing of the eleven majors.
(Chuck Mikolajczak)
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IF TRADE RIFT MENDS? MAYBE A 7 PCT RALLY (1120 EST/1620 GMT)
Wall Street's concerns about the trade rift between the United States and China are taking center stage, with leaders of the two nations expected to meet at the G20 summit in Argentina later this week.
The indexes were under pressure on Tuesday after President Donald Trump's comments that he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent. if Trump and Chinese President Xi Jinping were able to resolve their differences at their Buenos Aires meeting? A big bump to the stock market, says one market strategist.
"I think we would see a rebound of 5 to 7 percent," Kristina Hooper, chief global market strategist at Invesco, tells Reuters. "Keep in mind, I don't believe that trade was at all priced in until the October selloff."
Not that Hooper is forecasting a resolution this week, or perhaps not anytime soon.
"It's not predictable at all to know what the administration is going to do," Hooper said. "My base case is that the situation doesn't get any better from here, just knowing that there is not an interest in meeting halfway on the part of either side."
(Lewis Krauskopf)
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INDEXES REBOUND FROM LOWS AFTER SLUGGISH OPEN (1022 EST/1522 GMT)
Major U.S. indexes pare losses, with both the S&P .SPX and Nasdaq .IXIC briefly moving to the plus side as Apple AAPL.O shares cut losses, taking the tech sector .SPLRCT along for the ride.
Communication Services .SPLRCL is the best performer, with the biggest boosts to the sector reflecting its new structure with Verizon (NYSE:VZ) VZ.N , Netflix NFLX.O and Comcast CMCSA.O leading the way.
Still, trade worries are hitting materials .SPLRCM and industrials .SPLRCI as well as a stronger dollar, with the greenback gaining ground as Fed Vice Chair Richard Clarida backed further interest rate hikes. United Tech UTX.N shares also weighing heavily on industrials after its plan to separate into three companies. data did little to move the market, with the November consumer confidence reading a touch below expectations at 135.7 versus the 135.9 forecast.
(Chuck Mikolajczak)
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DOW JONES FUTURES: WALKING THE LINE (0908 EST/1408 GMT)
CBT E-Mini Dow Jones Futures' 1YMcv1 support line from the February trough continues to prove its significance. (Click on chart below)
Indeed, after falling close to this line late last week, Futures once again snapped higher on Monday. That bounce, however, may now be exhausted, which can put the trend line (now about 24220) at risk again.
Daily momentum remains negative, and a potential Elliott Wave structure still argues for lower levels (as a Wave 3 or C plays out). Thus, a closing break of the support line can see downside pressure intensify.
A thrust above resistance at the November 15 low (24782), however, can suggest a more extensive recovery off the support line. The 200-DMA now resides at about 25091.
(Terence Gabriel)
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STOCKS POISED TO RESUME DOWNTURN ON TRADE THREAT (0849 EST/1349 GMT)
U.S. equity futures indicated stocks will come under pressure once again on Tuesday, after President Donald Trump said he expected to move ahead with raising tariffs on $200 billion in Chinese goods from 10 percent to 25 percent.
In an interview with the Wall Street Journal four days ahead of his with meeting Chinese President Xi Jinping at the G20 summit, Trump also repeated his threat to place tariffs on all remaining imports from China. AAPL.O shares were off 1.6 percent in premarket as Trump said the next batch of tariffs could include laptops and iPhones.
The trade threat also weighed on European and Asian shares, although the Nikkei .N225 was able to muster a modest gain. Mikolajczak)
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<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Premarket levels Nov 27
https://tmsnrt.rs/2RhfhvL 1YMcv111272018
https://tmsnrt.rs/2Ri4YHY Early trade Nov 27
https://tmsnrt.rs/2Rcwt5A Midday levels Nov 27
https://tmsnrt.rs/2RnqoUd SLX11272018
https://tmsnrt.rs/2RkyVag
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