US close: Dow slips, Nasdaq gains as Trump's China threats cloud upbeat results

(Sharecast News) - Major indices delivered a mixed performance on Wednesday as concerns about the re-escalation of Donald Trump's trade war with China weighed on solid bank earnings.

At the close, the Dow Jones Industrial Average was down 0.04% at 46,253.31, while the S&P 500 advanced 0.40% to 6,671.06 and the Nasdaq Composite saw out the session 0.66% firmer at 22,670.08.

The Dow closed 17.15 points higher on Wednesday, taking only a modest bite out of solid gains recorded in the previous session.

Trade tensions between Washington and Beijing were still drawing investor attention on Wednesday after intensifying late on Tuesday on the back of Donald Trump's threats to impose a cooking oil embargo on China in response to its continued refusal to purchase US soybeans.

The move followed fresh sanctions from Beijing on five US subsidiaries of South Korean shipbuilder Hanwha Ocean, announced Monday night, and came days after Trump warned of a potential 100% tariff on Chinese imports - a threat that was issued in retaliation for China's decision to tighten export controls on rare earth minerals.

US trade representative Jamieson Greer said the proposed tariffs could take effect as early as 1 November, depending on China's next move. "A lot depends on what the Chinese do," Greer said. "They are the ones who have chosen to make this major escalation."

Treasury secretary Scott Bessent said on that recent market volatility linked to trade tensions had not deterred officials from maintaining a firm stance in negotiations with China. "We won't negotiate because the stock market is going down," Bessent said. "We will negotiate because we are doing what is best economically for the US."

Also in focus was the ongoing US government shutdown, now in its third week, which has added to market uncertainty by halting the release of key economic data. With federal agencies unable to publish updates, traders have been forced to contend with growing blind spots in their assessment of current macro conditions.

In the corporate space, banking giant Morgan Stanley posted third-quarter earnings that comfortably beat Wall Street expectations on Wednesday, driven by robust trading and investment banking activity, reporting a 45% year-on-year jump in profits to $4.61bn, or $2.80 per share, and an 18% increasee in revenues to a record $18.22bn, while Bank of America posted above-forecast third-quarter numbers as it became the latest Wall Street lender to benefit from a rebound in deal-making, with revenues coming in 11% higher year-on-year at $28.1bn, boosted by higher net interest income, investment banking and asset management fees and trading revenues.

After the close, United Airlines guided to adjusted earnings per share of $3 to $3.50 for the fourth quarter, ahead of the $2.82 expected by analysts, and said its full-year results would be at the upper end of guidance. For Q3, United said adjusted earnings came to $2.78 per share, surpassing the $2.66 expected on the Street.

On the macro front, manufacturing activity across New York State unexpectedly rose in October, marking its third increase over the past four months, according to a monthly report on sector conditions conducted by the Federal Reserve Bank of New York. The Empire State Manufacturing Survey's headline general business conditions index climbed 19 points to 10.7, up from -8.7 in September and comfortably ahead of the -1.0 reading pencilled in by economists.

Elsewhere, US mortgage applications fell for the third straight week over the seven days to 10 October, according to the Mortgage Bankers Association on Wednesday. The MBA's overall market index fell 1.8% last week, following a 4.7% drop the week before and a 12.7% plunge previously. Applications to refinance a mortgage fell by 1.0% over the week, while those for purchases dropped by 2.7%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Walmart Inc. (WMT) $109.03 1.70%

International Business Machines Corporation (CDI) (IBM) $280.88 1.67%

Dow Chemical Co. (DOW) $22.20 1.28%

Cisco Systems Inc. (CSCO) $69.52 1.25%

Caterpillar Inc. (CAT) $534.20 1.25%

Nike Inc. (NKE) $68.40 1.21%

JP Morgan Chase & Co. (JPM) $305.69 1.20%

Amgen Inc. (AMGN) $297.32 1.18%

Apple Inc. (AAPL) $249.34 0.63%

3M Co. (MMM) $153.51 0.62%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $269.54 -2.25%

Salesforce.Com Inc. (CRM) $236.58 -1.33%

Procter & Gamble Co. (PG) $147.42 -1.17%

Visa Inc. (V) $345.90 -0.77%

Merck & Co. Inc. (MRK) $84.08 -0.70%

American Express Co. (AXP) $330.69 -0.66%

Coca-Cola Co. (KO) $67.10 -0.64%

Verizon Communications Inc. (VZ) $40.38 -0.42%

Goldman Sachs Group Inc. (GS) $767.81 -0.37%

Chevron Corp. (CVX) $152.11 -0.18%

S&P 500 - Risers

Advanced Micro Devices Inc. (AMD) $238.60 9.40%

Western Digital Corp. (WDC) $120.44 6.46%

ProLogis (PLD) $122.73 6.33%

KLA-Tencor Corp. (KLAC) $1,087.01 5.98%

CenturyLink Inc. (LUMN) $7.28 5.82%

Fluor Corp. (FLR) $50.67 5.18%

Morgan Stanley (MS) $162.61 4.71%

Lam Research Corp. (LRCX) $144.78 4.68%

Bank of America Corp. (BAC) $52.28 4.37%

Applied Materials Inc. (AMAT) $227.58 4.30%

S&P 500 - Fallers

Progressive Corp. (PGR) $226.50 -5.78%

Transdigm Group Inc. (TDG) $1,237.60 -5.70%

Motorola Solutions Inc (MSI) $438.66 -4.71%

Allstate Corp (The) (ALL) $200.52 -4.34%

Gartner Inc. (IT) $236.65 -4.03%

PNC Financial Services Group (PNC) $182.23 -3.90%

L3Harris Technologies Inc. (LHX) $289.72 -3.42%

Assurant Inc. (AIZ) $214.85 -3.14%

Northrop Grumman Corp. (NOC) $608.93 -2.87%

Abbott Laboratories (ABT) $129.50 -2.87%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $120.44 6.46%

KLA-Tencor Corp. (KLAC) $1,087.01 5.98%

Lam Research Corp. (LRCX) $144.78 4.68%

Applied Materials Inc. (AMAT) $227.58 4.30%

Asml Holdings N.V. (ASML) $1,009.81 2.71%

DENTSPLY Sirona Inc. (XRAY) $12.80 2.65%

Micron Technology Inc. (MU) $191.94 2.61%

Incyte Corp. (INCY) $88.19 2.59%

American Airlines Group (AAL) $12.50 2.54%

Alphabet Inc. Class A (GOOGL) $251.03 2.27%

Nasdaq 100 - Fallers

Mercadolibre Inc. (MELI) $2,048.35 -5.07%

Fiserv Inc. (FI) $121.11 -2.43%

Expedia Group Inc. (EXPE) $218.43 -2.10%

Check Point Software Technologies Ltd. (CHKP) $190.17 -2.01%

Paypal Holdings Inc (PYPL) $67.98 -1.69%

Adobe Systems Inc. (ADBE) $330.63 -1.58%

T-Mobile Us, Inc. (TMUS) $226.65 -1.21%

Fastenal Co. (FAST) $42.24 -1.19%

Biogen Inc (BIIB) $143.66 -1.14%

Align Technology Inc. (ALGN) $128.34 -1.12%