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Indexes: Dow flat, S&P 500 down 0.06%, Nasdaq slips 0.13%
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Trump to host Zelenskiy, EU leaders to push Russia peace
deal
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Solar stocks rise on 'milder' subsidy rules
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Dayforce ( DAY ) surges on Thoma Bravo acquisition talks
(Updates to after markets open)
By Johann M Cherian and Sanchayaita Roy
Aug 18 (Reuters) - Wall Street's main indexes were
subdued on Monday, in a quiet start to a week packed with
corporate earnings reports from major retailers and the Federal
Reserve's annual symposium in Jackson Hole.
Investors also remained wary ahead of a meeting between U.S.
President Donald Trump and Ukraine's Volodymyr Zelenskiy on
Kyiv's conflict with Moscow. Trump has told Ukraine to give up
hopes of getting back annexed Crimea or joining NATO, but will
push for a peace deal with Russia.
Wall Street's main indexes rallied over the past two weeks,
with the blue-chip Dow hitting an intra-day record high
on Friday, aided by interest rate cut expectations and a
better-than-expected earnings season despite an uncertain trade
environment.
Investors will closely monitor reports from Walmart ( WMT ),
Home Depot ( HD ) and Target ( TGT ) among others, which are
expected this week, to determine how trade uncertainty and
inflation expectations have affected U.S. consumers.
Data on Friday showed that while retail sales were
increasing broadly as anticipated, consumer sentiment overall
had taken a hit from mounting inflation fears.
"A lot of orders were pulled forward from a lot of retailers
and companies that are producing products. So from an earnings
standpoint, most likely they're going to be in line and if there
is a beat, it might be slight," said Michael Matousek, head
trader at U.S. Global Investors.
At 09:55 a.m. ET, the Dow Jones Industrial Average
fell 2.15 points to 44,943.97, the S&P 500 lost 3.83
points, or 0.06%, to 6,445.97 and the Nasdaq Composite
lost 28.59 points, or 0.13%, to 21,594.39.
Seven of the 11 S&P 500 sectors edged up, with healthcare
stocks leading with a 0.5% rise as UnitedHealth ( UNH )
gained 2.3%, building on its nearly 12% jump in the previous
session.
Investors continue to price in a 25-basis-point cut from the
Federal Reserve next month, although they have lowered their
expectations for another rate cut this year, according to data
compiled by LSEG.
Recent data have also suggested that while U.S. tariffs have
not filtered into headline consumer prices yet, weakness in the
jobs market could nudge the central bank to take a more dovish
stance.
Markets hope that the Fed's Jackson Hole, Wyoming conference
between August 21 and 23, where Chair Jerome Powell is expected
to speak, could offer more clarity on the economic outlook and
the central bank's policy framework.
On the trade front, the Trump administration widened the
reach of its 50% tariffs on steel and aluminum imports by adding
hundreds of derivative products to the list of goods subject to
the levies.
Dayforce ( DAY ) surged the most in the S&P 500 index, up
25.4% after a report said PE firm Thoma Bravo is in talks to
acquire the HR management software firm.
Solar stocks such as SunRun ( RUN ) jumped 7.2% and First
Solar ( FSLR ) gained 6.2% after the U.S. Treasury Department
unveiled new federal tax subsidy rules for solar and wind
projects.
Advancing issues outnumbered decliners by a 1.41-to-1 ratio
on the NYSE and by a 1.4-to-1 ratio on the Nasdaq.
The S&P 500 posted five new 52-week highs and two new lows,
while the Nasdaq Composite recorded 54 new highs and 35 new
lows.
(Reporting by Johann M Cherian and Sanchayaita Roy in
Bengaluru; Editing by Shinjini Ganguli)