Tech, financials weigh on S&P, industrials prop up Dow

(Reuters) – Wall Street slipped on Friday, weighed down by financials and as Alphabet and Applied Materials led technology stocks lower, although losses were limited as industrial shares gained on signs of progress in Sino-U.S. trade talks.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 18, 2018. REUTERS/Brendan McDermid

China denied it had offered a package to slash the U.S. trade deficit by up to $200 billion, hours after it dropped an anti-dumping probe into U.S. sorghum imports in a conciliatory gesture as top negotiators meet in Washington.

A Chinese foreign ministry spokesman said the consultations were “constructive” as the world’s two biggest economies are seeking to bridge a divide on trade issues.

“There is still a concern around trade talks with China, but … the stock market is cautiously optimistic that trade talks will lead to a good result,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

The industrial sector .SPLRCI jumped 0.5 percent, the most among the 11 major S&P sectors, with Boeing’s (BA.N) near 2 percent rise giving the biggest lift.

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Also helping the industrials sector was Deere (DE.N), which jumped 5.5 percent after the company raised its full-year earnings estimate.

Alphabet (GOOGL.O) tumbled 0.8 percent, weighing the most on the Nasdaq. Google is set to be featured on CBS News’ “60 minutes” this weekend.

Applied Materials (AMAT.O) dropped 8.4 percent after the chip gear maker’s disappointing forecast renewed concerns over slowing smartphone demand.

The warning dragged down Philadelphia chipmaker index .SOX by 0.9 percent. Intel’s (INTC.O) 1.8 percent fall weighed on the market’s three major indexes.

The financial index .SPSY was off 0.44 percent.

At 11:21 a.m. EDT the Dow Jones Industrial Average .DJI was up 42.81 points, or 0.17

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