Stocks erase gains as trade tensions drag on tech

AP

Stocks erased earlier gains Wednesday after temporarily rising on the prospect of cooling trade tensions between the US and China. The dollar rallied against a basket of peers, and Treasury yields fell.

Here is the scoreboard:

Dow Jones industrial average: 24,122.81 −160.30 (-0.66%)

S&P 500: 2,710.99 −12.07 (-0.44%)

1. The Trump administration softened its tone on trade with China. Officials said any investment restrictions imposed on Beijing will happen through existing laws, as opposed to executive action.
2. President Donald Trump and Russian President Vladimir Putin will likely meet soon, the Kremlin said. Some have been skeptical at the prospect of such a meeting, which is expected to take place next month, after alleged Russian meddling in the 2016 election and amid tensions between the US and its allies.
3. US business spending on equipment unexpectedly slipped in May. New orders for US capital goods fell 0.2%, compare with the 0.5% gain economists expected. Separate data showed the US goods deficit narrowing last month.
4. Oil rallied to a fresh 2018 peak as US crude saw its biggest drawdown since September 2016. West Texas Intermediate cracked $73 a barrel, its highest level this year. Also offering support to crude, the US signaled zero-tolerance approach to its demand for countries to stop buying Iranian oil by November.
5. The Justice Department gave Disney the go ahead for its $71 billion bid for 21st Century Fox. The approval, which requires that Disney divest Fox's regional sports networks, is the latest move in a bidding war for the company between Disney and Comcast.

And a look at the upcoming economic calendar:

• The EU economic summit starts in Brussels.
• The US releases GDP numbers.
• Inflation data are out in Germany and Spain.