Wall Street turns negative, as techs drag

US stocks have erased their earlier gains, dropping into the red late in the New York trading session.

Economic data has been mostly upbeat today. Consumer sentiment was a nice surprise that helped fuel earlier gains, pushing the S&P 500 to a fresh all-time high, while pending home sales showed a slender rise, climbing from 94.9 to 95.0 for January.

This is not a sizeable advance, but such a sign of stability amidst other signs of housing weakness provides some encouragement that housing could turn a corner come the spring. Further positive data came in the form of February’s Chicago PMI, which rose to 59.8, with the employment component showing noteworthy strength.

Despite these re-assuring indications, the stock market has reversed late in the day, with the Dow down 0.13% less than hour from the close in New York. The S&P 500 also dipped into the red before bouncing back slightly, showing gains of 0.13% at the time of writing and therefore on course for a second successive record close.

Despite this little wobble late in the session, both the Dow and the S&P are on track for gains over the course of the month of February.

March will kick off with some important manufacturing reports; we have Markit’s final manufacturing PMI for February and the ISM’s manufacturing index on Monday. Manufacturing data has been showing an unclear picture recently, but these two reports will  give us our best indications yet for how this sector performed this month.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.