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Stocks - Wall Street Drifts Following Trade-Fueled Rally

Published 10/02/2018, 09:40 AM
© Reuters.  Stocsk started the day on a hesitant note.
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Investing - Stocks opened mixed Tuesday as investors took a pause following the strong rally in the previous session and digested more tensions in the EU over Italy’s budget.

The Dow rose 7.26, or 0.03%, to 26,658.47, while the broader S&P 500 index fell 2.62, or 0.09%, to 2,921.97. The tech-heavy Nasdaq composite lost 25.04, or 0.31%, to 8,012.26.

Italy is not backing down from its plan of a budget with a deficit of 2.4% of economic output and coalition leaders have threatened to sue EU officials.

Italy’s FTSE MIB was down about 0.1%. Germany’s DAX fell 0.7%, while in France the CAC 40 decreased 0.6% and in London, the FTSE 100 was down 0.3%. The pan-European Euro Stoxx 50 lost 0.8%.

U.S. bank stocks were unfazed by the EU worries and a fall in Treasury yields. JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) were all up at the start.

Financials could also see some activity at 12:00 PM ET (16:00 GMT) when Federal Reserve Chairman Jerome Powell speaks.

Energy stocks slipped on some profit-taking, despite crude oil rising slightly in morning trading.

ExxonMobil (NYSE:XOM) fell 0.2% and ConocoPhillips (NYSE:COP) lost 1.2%.

Among other active stocks, PepsiCo (NASDAQ:PEP) stock fell 1.4% after the company reported quarterly revenue above expectations, but guidance looked light.

Amazon.com (NASDAQ:AMZN) lost 0.7% after the company announced it was raising the minimum wage for U.S. workers to $15 an hour.

And Kroger (NYSE:KR) rose 1.2% after the company announced it was testing grocery pickup at Walgreens (NASDAQ:WBA).

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