The Dow Jones Industrial Average was up 66 points, or 0.3%, led by a gain in American Express. The S&P 500 and Nasdaq Composite climbed 0.2% each.
Manufacturing activity in Germany fell to its lowest level since the financial crisis this month, data from IHS Markit showed. Germany’s services sector also grew at its slowest pace in nine months. Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is
European stocks fell broadly on the weak data. The German Dax dropped 1.2
Monday’s moves come after the major indexes snapped a three-week winning streak on Friday as they struggled to reach July’s record highs. Entering Monday’s session, the Dow and S&P 500 were more than 1% from their all-time highs. The Nasdaq Composite was 2.7% away.
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Stocks have struggled at these levels amid lingering trade tensions between China and the U.S. However, senior Chinese trade officials said talks held last week were “constructive.” U.S.
President Donald Trump has said China would increase its purchases of U.S.
“Trade wars and isolationist policies pose a major threat heading forward, and are being fueled in part by the reduction in global trade and manufacturing jobs,” said Phillip Colmar, partner at MRB Partners, in a note. “So far, the direct impact has been modest, but the indirect impact on manufacturing sentiment and activity has been meaningful given the starting point of subdued global export demand.”
Amazon shares pulled back by 0.4% after an analyst at Morgan Stanley lowered its price target on the e-commerce giant to $2,200 from $2,300. The analyst cited Amazon’s one-day shipping for the target trim, but noted this will “will likely only deepen their
American Express rose 1.3% after the company authorized a buyback program of up to 120 million shares. The company also hiked its dividend by 10% to 43 cents per share.