“We still have a long way to go (in terms of an economic recovery) and income support is the way to power the consumer through. If we get strong retail sales data over the next two months, given the lack of recent government action, it should be very positive,” Aptus Capital’s Wagner added.
Uncertainty over the timing of a stimulus agreement has undercut sentiment in recent sessions, with the upcoming U.S. presidential elections expected to add another layer of caution.
At 11:00 a.m. ET, the Dow Jones Industrial Average was down 26.73 points, or 0.10%, at 27,869.99, the S&P 500 was down 3.44 points, or 0.10%, at 3,369.99. The Nasdaq Composite was down 50.24 points, or 0.45%, at 10,992.26.
Applied Materials Inc gained 4.4% after it forecast fourth-quarter revenue above analysts’ estimates following a rebound in demand for chip equipment and services.
Electric car maker Tesla rose 1.6% after Morgan Stanley upgraded the stock, citing potential in the firm’s battery business.
Chinese search engine giant Baidu Inc posted quarterly revenue a notch above estimates, but its shares slid 6.8% after its streaming service iQIYI said it was being probed by the U.S. Securities and Exchange Commission.
Shares of iQIYI dropped 14.1%.
Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and six new lows. (Reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Arun Koyyur and Uttaresh.V)