Major US stock indices closed near zero, as the fall of the conglomerate sector leveled outperforming data on activity in the US manufacturing sector, which strengthened investor confidence in the strength of the US economy

The latest IHS Markit report showed that US private sector output increased in September, with growth rates slightly outstripping the August reading. The seasonally adjusted composite PMI index rose to 51.0 in September, up from 50.7 in the previous month. The last reading was much lower than the average for the last decade (55.0). The seasonally adjusted index of activity in the manufacturing sector recovered slightly - to 51.0 in September, compared with 50.3 in August and this is the highest since April. Recent data indicate a slight overall improvement in the business environment in the manufacturing sector. Seasonally adjusted, the service sector activity index rose to 50.9 in September from 50.7 in August, but is still one of the lowest in the past three and a half years. Analysts predicted that the manufacturing index would remain at 50.3, while the index for the service sector would rise to 51.5 from 50.7.

Market participants also continued to monitor the course of trade negotiations between the United States and China. Senior Chinese trade officials said the talks last week were “constructive.” US officials said both sides had “productive” trade negotiations ahead of official talks next month. In addition, the media said that the Chinese delegation’s unexpected cancellation of visits to farms in Montana, which was reported late last week, should not be seen as a sign of disruption to the negotiations at the lowest level. US President Donald Trump said China will increase its purchases of US agricultural products through a bilateral trade deal.

Most DOW components completed trading in positive territory (20 out of 30). The biggest gainers were American Express Company (AXP; + 1.25%). Outsider were shares of UnitedHealth Group Incorporated (UNH; -1.65%).

S&P sectors showed multidirectional dynamics. The consumer goods sector grew the most (+ 0.5%). The conglomerate sector showed the largest decrease (-1.4%).

At the time of closing:

Dow 26,950.26 +15.19 +0.06%

S&P 500 2,991.78 -0.29 -0.01%

Nasdaq 100 8,112.46 -5.21 -0.06%

U.S. stock-index futures traded little chaged, as investors remained cautious about progress in U.S.-China trade negotiation and awaited Markit’s “flash” survey on activity in U.S manufacturing and services sectors.

Global Stocks:

• Right now we have no basis for a deal but we will continue to talk
• We can't pick and choose when it comes to protecting the single market and consumers
• Hard to see how we can arrive at a solution that fulfills all the objectives of the backstop

Amazon (AMZN) target lowered to $2,200 from $2,300 at Morgan Stanley

(company / ticker / price / change ($/%) / volume)

Alcoa (AA) downgraded to Neutral from Buy at Goldman; target lowered to $25