Markets Right Now: Weak factory report sinks stock market

NEW YORK – The latest on developments in financial markets (all times local):

11:45 a.m.

A surprise contraction in U.S. manufacturing last month knocked the stock market lower, erasing an early rally.

The report from the Institute for Supply Management Tuesday fanned fears that the U.S.-China trade war is slowing down economic growth.

Charles Schwab plunged after eliminating commissions for online trading, escalating a price war with other online brokerages.

Rivals TD Ameritrade and ETrade Financial lost about a fifth of their value.

The S&P 500 fell 20 points, or 0.7%, to 2,955.

The Dow Jones Industrial Average lost 219 points, or 0.8%, to 26,694. The Nasdaq gave up 47 points, or 0.6%, to 7,952.

Bond prices jumped after the ISM report as investors sought out safe assets. The yield on the 10-year Treasury dropped to 1.62% from 1.73%, a big move.

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9:35 a.m.

Stocks are opening higher on Wall Street led by gains in technology and communications stocks.

Apple rose 1.3% and Amazon climbed 1% in the first few minutes of trading Tuesday.

Charles Schwab plunged 8.5% after the company said it was eliminating trading commissions on stocks, exchanged-traded funds and options.

Global markets were mixed after the World Trade Organization sharply cut its forecasts for trade growth this year and next.

The S&P 500 rose 13 points, or 0.4%, to 2,990.

The Dow Jones Industrial Average rose 111 points, or 0.4%, to 27,029. The Nasdaq rose 47 points, or 0.6%, to 8,047.

Bond prices fell. The yield on the 10-year Treasury rose to 1.73%.