(Reuters) - The S&P 500 was little changed on Tuesday, as mixed earnings reports and concerns about the upcoming U.S.-China trade talks gave little impetus for markets to recover from a slide a day earlier.
Initial releases in a bumper day of results showed 3M Co gaining 2.5 percent after a better-than-expected quarterly profit, while Verizon Communications Inc and Harley-Davidson Inc dropped after downbeat reports.
Industrial stocks, which took a beating after Caterpillar Inc’s China warning on Monday, gained ground. The index rose 1.1 percent, driven by strong reports for 3M Co and defense companies, in turn helping the Dow Jones industrial index stay afloat.
Wall Street sold off on Monday as profit alerts from a series of companies raised fears that a slowdown in China and tariffs could take a bigger hit on profits.
In a potential setback to the progress in U.S-China trade talks, the U.S. Justice Department leveled charges against China’s telecom giant Huawei days before a high-level meeting between the two countries in Washington, aimed to tackle a prolonged tariff war that has roiled financial markets.
“Huawei is a competitor and a supplier to U.S. companies, so any negative impact can be felt on a broader spectrum,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
“But the fact that there are discussions on trade is viewed as a positive. Investors are expecting positive comments because the (Trump) administration has been cheerleading the market and want markets to move higher.”
Although earnings have largely surpassed Wall Street’s expectations, helping the S&P 500 climb about 12 percent from its December lows, worries about
