Wall St. trims gains as weak data weighs ahead of Trump budget
U.S. stocks trimmed their gains on Tuesday morning, weighed down by weak economic data, while investors await more details from President Donald Trump’s first full budget plan aimed at slashing government spending.
“Investors are interested simply because it does give an indication where Trump is going to try to influence the agenda and there is some concern over whether he has reduced negotiating power because of his own political difficulties at the moment,” said Lisa Kopp, head of traditional investments at U.S. Bank Wealth Management in Minneapolis.
Congress holds the federal purse strings and often ignores presidential budgets, which are proposals and may not take effect in their current form.
Economic data showed new single-family home sales in April tumbled from near a 9-1/2-year high, while manufacturing activity for May fell to its lowest level since September.
While the job market continues to strengthen, other pieces of data have shown a dip in consumer sentiment and spending, which makes up about two-thirds of U.S. economic activity.
“We’re likely to be in a sideways period in the market for the next few weeks as there are quite a bit of pieces of news the market is digesting including geopolitical developments in Washington and globally,” said Kopp.
At 10:56 a.m. ET the Dow Jones Industrial Average (DJI) was up 39.21 points, or 0.19 percent, at 20,934.04, the S&P 500 (SPX) was up 3.5 points, or 0.14 percent, at 2,397.52 and the Nasdaq Composite (IXIC) was down 1.80 points, or 0.03 percent, at 6,131.82.
The market also seemed to have shrugged off news of a suicide attack in Britain. U.S. futures had slipped slightly on Monday evening, before recovering, on news of the attack that killed 22 people and wounded many more at a pop concert in the English city of Manchester.