US STOCKS-Wall St slips on trade worries, Hong Kong unrest

  • Reuters
  • Stock Market News
US STOCKS-Wall St slips on trade worries, Hong Kong unrest
Credit: © Reuters.

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* Trump gives no new details on trade deal with China

* Trade-sensitive chipmakers, industrials fall

* Fed Chair Jerome Powell to testify at 11 a.m. ET

* Indexes down: Dow 0.06%, S&P 0.13%, Nasdaq 0.20% (Updates to open)

By Arjun Panchadar

Nov 13 (Reuters) - Wall Street edged lower on Wednesday as President Donald Trump's threat to "substantially" raise tariffs if China did not make a trade deal with the United States as well as escalating tensions in Hong Kong kept investors away from riskier assets.

Trump on Tuesday dangled the prospect of completing an initial deal with China "soon," but offered no new details on negotiations and largely repeated well-worn rhetoric about China's "cheating" on trade. stocks had lifted the benchmark S&P 500 .SPX and Nasdaq .IXIC to all-time highs in the run up to Trump's speech on Tuesday, but the indexes pulled back slightly after his address at the Economic Club of New York.

"Now is more the realization that 'phase one' is really not a done deal," said Art Hogan, chief market strategist at National Securities in New York.

"It felt for a couple weeks that the deal was almost done and then you have these comments that sort of puts us in the same place we were."

Eight of the 11 major S&P 500 sectors were lower. The financial sector .SPSY fell 0.65%, tracking a drop in benchmark 10-year U.S. Treasury yields and weighing the most. US/

The trade-sensitive industrial sector .SPLRCI was also among the biggest drags, while the Philadelphia Semiconductor index fell 0.87%.

Heightened tensions in Hong Kong also dulled sentiment after police warned violence related to anti-government protests had reached a deadly level and that the Asian financial hub had been pushed to the "brink of a total breakdown". Street's main indexes have touched new highs this month on the back of a strong corporate earnings season and hopes of a trade deal to end the damaging 16-month tariff war.

U.S. central bankers see a "sustained expansion" ahead for the country's economy, with the full impact of recent interest rate cuts still to be felt, Federal Reserve Chair Jerome Powell said in his prepared remarks for testimony that is scheduled to begin at 11 a.m. ET (1600 GMT). the economic front, data showed U.S. consumer prices rebounded more than expected in October and underlying inflation picked up. 10:03 a.m. ET the Dow Jones Industrial Average .DJI was down 16.71 points, or 0.06%, at 27,674.78, the S&P 500 .SPX was down 4.11 points, or 0.13%, at 3,087.73 and the Nasdaq Composite .IXIC was down 16.84 points, or 0.20%, at 8,469.26.

Shares of Alibaba (NYSE: BABA ) Group Holding Ltd BABA.N slipped 1.2% as the Chinese e-commerce giant revealed plans to launch a Hong Kong share sale to raise up to $13.4 billion. Inc SDC.O slumped 19% as the teeth alignment company posted a bigger quarterly loss and pointed towards more losses for the year. Data Corp TECD.O gained 4% after announcing private equity Apollo Global Management APO.N would buy the U.S. company in a deal valued at $5.4 billion. Luckin Coffee Inc LK.O rose 13.2% as the Starbucks Corp SBUX.O rival reported a smaller-than-expected loss and forecast fourth-quarter revenue above estimates. L4N27T2UK

Declining issues outnumbered advancers for a 1.67-to-1 ratio on the NYSE and a 1.89-to-1 ratio on the Nasdaq.

The S&P index recorded eight new 52-week highs and one new lows, while the Nasdaq recorded 34 new highs and 55 new lows.

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