Stocks traded mixed Tuesday, Dec. 11, after Donald Trump and top Democratic leaders clashed over border security.
Stocks had risen sharply earlier in the session following progress in U.S.-China trade talks, but those gains gave way to concerns about a possible government shutdown over a an impasse about border security.
The Dow Jones Industrial Average fell 52 points, or 0.21%, to 24,371, the S&P 500 fell 0.04%, and the Nasdaq gained 0.16%.
Trump spoke Tuesday about securing funding for a border wall between the U.S. and Mexico. "If we don't get what we want, one way or the other ... I will shut down the government," Trump said.
But Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi said they would hold Trump responsible if the government shuts down later this month.
"Our country cannot afford a Trump Shutdown," Schumer and Pelosi said in a statement, adding that Trump "knows full well that his wall proposal does not have the votes to pass the House and Senate and should not be an obstacle to a bipartisan agreement."
Stocks had gained significantly earlier Tuesday after China's chief trade negotiator, Liu He, spoke with U.S. Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer by phone Monday night and agreed to work toward the framework of talks set during the G-20 leaders' summit in Argentina, , China's Commerce Ministry said in a statement.
"Both sides exchanged views on putting into effect the consensus reached by the two countries' leaders at their meeting, and pushing forward the timetable and road map for the next stage of economic and trade consultations work," the ministry said.
Trump said in a tweet on Tuesday that conversations with China were "very productive."
Very productive conversations going on with China! Watch for some important announcements!
- Donald J. Trump (@realDonaldTrump) December 11, 2018The Producer Price Index for November rose 0.1%, topping economists' estimates that called for no change in wholesale inflation. Core PPI, which strips out food and energy costs, rose 0.3%. PPI over the past year slowed to 2.5% from 2.9%.
Verizon Communications Inc. (VZ) announced Tuesday that the cost of its employee buyout plan will range between $1.8 billion and $2.1 billion and will be recorded in the fourth quarter. In addition, Verizon said it would record a goodwill impairment charge of $4.6 billion at Oath, the company's media business, following a review of the operation.
Shares of Verizon rose 1%.
Verizon to Take Massive Charges From Employee Buyouts, Weakness at OathPfizer Inc. (PFE) shares fell 0.86% to $44.02 on Tuesday after analysts at JPMorgan lowered their rating on the drugmaker amid concerns over the loss of exclusivity on one of its key pain treatments.
Pfizer Slips After JPMorgan Downgrade on Patent Cycle ConcernsUnder Armour Inc. (UAA) fell slightly after it ousted two sports-marketing executives who were long-time associates of CEO Kevin Plank, The Wall Street Journal reported, after the apparel brand conducted an internal review of their department's spending.
Ryan Kuehl, senior vice president of global sports marketing, and Walker Jones, senior director of sports marketing, were both removed from their roles last week, people familiar with the matter told the Journal. Management questioned the way the two men had been running the sports-marketing department and whether some of their spending was appropriate, some of the people told the Journal.
Under Armour fell more than 1% Tuesday.
Stitch Fix Inc. (SFIX) tumbled 20.9% on Tuesday after its client growth disappointed Wall Street.
Stitch Fix said it had 2.9 million active clients in its fiscal first quarter using its subscription clothing services, an increase of 22%, but below analysts' forecasts of 2.95 million. The company also said its active client count would remain relatively flat in its fiscal second quarter from the first quarter.
Stitch Fix Tanks as User Growth DisappointsDSW Inc. (DSW) jumped more than 8% after the shoe retailer posted fiscal third-quarter earnings that topped forecasts and the company lifted guidance for the full year.
DSW Leaps as Shoe Retailer Posts Strong Earnings, Guidance