Shares of industrial and transportation companies fell after mixed manufacturing data.
U.S. factory orders jumped 1.6% in May, but the increase was largely tied to petroleum-related products whose prices have risen sharply. More recently collected factory data, including regional surveys, suggest a slowdown.
Cyclical stock indexes were higher in early trading amid rumors that the Biden administration was set to roll back tariffs on Chinese goods.
During a virtual meeting on Tuesday, Liu He, China’s top trade negotiator, told U.S. Treasury Secretary Janet Yellen that the lifting of additional tariffs and sanctions was of great interest to China, according to a statement by the country’s official Xinhua News Agency.
Cyclical sectors sold off when U.S. markets opened and traders digested reports on the diplomatic call.
“There was a little bit of disappointment in the talks…ostensibly, the call did not go in the direction that the market had expected,” said Quincy Krosby, chief equity strategist at brokerage LPL Financial.
Ford Motor reported a nearly 32% increase in U.S. sales in June, beating out much of the industry as it improved truck and SUV deliveries and benefited from the rollout of a new all-electric pickup.
Write to Rob Curran at [email protected]
(END) Dow Jones Newswires
07-05-22 1701ET
