Shares of industrial and transportation companies fell after mixed manufacturing data.
Factory orders in the United States jumped 1.6% in May, but the increase was largely linked to petroleum products, the prices of which rose sharply. More recently collected factory data, including regional surveys, suggests a slowdown.
Cyclical stock indices were higher in early trading amid speculation that the Biden administration was set to cut tariffs on Chinese goods.
In a virtual meeting on Tuesday, Liu He, China’s chief trade negotiator, told US Treasury Secretary Janet Yellen that the lifting of tariffs and additional sanctions is of great interest to China. , according to a statement from the official Xinhua news agency.
Cyclical sectors sold off as US markets opened and traders digested reports on the diplomatic call.
“There was a bit of disappointment in the talks…ostensibly the call didn’t go in the direction the market 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 much of the industry by improving truck and SUV deliveries and benefiting from the rollout of a new pickup truck all electric.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswire
07-05-22 1701ET
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