Wall Street Slips as Tech Stocks Weigh


(Reuters) – U.S. stocks opened lower on Monday, with the Dow on track to snap an 11-day winning streak, as technology stocks declined and investors paused ahead of President Donald Trump’s address to a joint session of Congress on Tuesday.

Investors will be closely watching Trump’s address for clues on his proposed tax reform and his plans to overhaul the Affordable Healthcare Act.

Trump’s promise a few weeks ago of a “phenomenal” tax announcement helped rekindle a post-election rally, driving the main U.S. markets to record highs.

But with details scant on how Trump planned to implement his agenda, investors have turned wary and the markets have traded range-bound.

The Dow hit its 11th straight record close on Friday with a mere 0.05 percent gain.

Utilities and telecom services stocks – traditionally defensive plays of the S&P 500 index – outperformed the other sectors last week.

Billionaire U.S. investor Warren Buffett told CNBC that while stocks are cheap, they are currently unpredictable and prone to a sudden, steep correction.

Also weighing on sentiment was a Commerce Department report that showed new orders for U.S.-made capital goods unexpectedly fell in January after three straight months of strong gains.

At 9:35 a.m. ET (1435 GMT) the Dow Jones Industrial Average was down 37.13 points, or 0.18 percent, at 20,784.63, the S&P 500 was down 4.23 points, or 0.17 percent, at 2,363.11 and the Nasdaq Composite was down 15.15 points, or 0.26 percent, at 5,830.15.

Eight of the 11 major S&P 500 sectors were lower, with the 0.33 percent drop in technology weighing the most. Microsoft was the top drag on the index and fell 0.6 percent.

Electric carmaker Tesla fell nearly 4 percent to $246.42 after Goldman Sachs downgraded the company’s stock to “sell” from “neutral” and lowered its price target.

La Jolla Pharmaceutical jumped 47 percent to $29.44 following the success of its lead experimental drug in a late-stage study.

Shutterstock dropped 13.4 percent to $44.73 after the stock image provider reported quarterly revenue that missed analysts’ average estimate.

Declining issues outnumbered advancers on the NYSE by 1,422 to 1,092. On the Nasdaq, 1,214 issues fell and 969 advanced.

The S&P 500 index showed 34 new 52-week highs and one new low, while the Nasdaq recorded 62 new highs and 22 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)

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