Health, technology stocks sink indexes in morning trading

NEW YORK – Stocks moved lower in morning trading on Wall Street as losses for health care and technology companies offset more gains for retailers.

The mostly wobbly trading follows a listless day as investors continue to look for direction. Disappointing economic reports, uncertainty over trade and fears of a slowdown in economic growth have been weighing on the market.

U.S. businesses added a solid 183,000 jobs in February, according to a private survey by payroll processor ADP, but that was less than the 188,000 that analysts expected. The trade deficit jumped 19 per cent in December, widening the figure to a decade-long high of $621 billion.

The market has been swayed in recent days by hopes that the U.S. and China will resolve their trade dispute. Media reports are back-and-forth on both sides being close to a deal that would pull back on tariffs, and alternately hitting a rough spot on some key items.

General Electric fell 5 per cent after the conglomerate’s CEO said it will be left with no extra funds in 2019. Exxon Mobil fell 2.3 per cent after the energy company said it would increase spending.

Retail stocks are rising for the second day. Abercrombie & Fitch surged after reporting results that were much better than analysts expected.

KEEPING SCORE: The Dow Jones Industrial Average fell 82 points, or 0.3 per cent, to 25,726 as of 10:50 a.m. The S&P 500 index fell 0.4 per cent and the Nasdaq composite fell 0.6 per cent.

ANALYST’S TAKE: “We’re just waiting for some news that will give us some direction,” said Tracie McMillion, head of global asset allocation at Wells Fargo Investment Institute.

The market got clarity on some uncertainties over the last month, including the Federal Reserve’s strategy and prospects for a U.S.-China trade deal, she said. But investors now face other concerns including a potential global slowdown and increased government debt.

RETAIL RISES AGAIN: A solid fourth quarter and forecast pushed shares of Abercrombie & Fitch 20 per cent higher. The retailer beat an important industry sales measure on gains at its Hollister brand.

The beat by Abercrombie comes a day after Target and Kohl’s reported solid earnings and forecasts. The strong results came as a pleasant surprise for investors, considering that overall retail sales fell broadly in December.

Among other retailers, Tailored Brands rose 5 per cent, Urban Outfitters rose 3 per cent, and Dollar Tree rose 2 per cent.