Another set showed the number of Americans filing applications for unemployment benefits fell last week, but the four-week moving average rose to a more than one-year high, suggesting the labor market was slowing down. The Philadelphia Fed's gauge on US Mid-Atlantic business activity also showed a decline in February to its weakest level since May 2016. "The numbers on Philadelphia Fed Manufacturing and durable goods are volatile indicating that the economy is slowing," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
Stocks have gained so far this week on hopes of a trade resolution, extending a rally since the beginning of the year on an upbeat fourth-quarter earnings season and a dovish Federal Reserve. At 9:59 a.m. ET the Dow Jones Industrial Average was down 77.76 points, or 0.30 percent, at 25,876.68. The S&P 500 was down 10.51 points, or 0.38 percent, at 2,774.19 and the Nasdaq Composite was down 40.95 points, or 0.55 percent, at 7,448.12.
Johnson & Johnson shares fell 1.3 percent and weighed on both the S&P 500 and the Dow Jones Industrial Average. The drugmaker said it received subpoenas from US regulators related to litigation involving alleged asbestos contamination in its signature Baby Powder product line. The S&P healthcare sector fell 0.65 percent. Nike Inc shares dropped 1.0 percent, weighing the most on the consumer discretionary sector, which slipped 0.35 percent. A Nike sneaker worn by emerging basketball star Zion Williamson split in half 33 seconds into a hotly anticipated game between Duke University and North Carolina.