(Corrects paragraph 11 to say trillion, not billion)
* Investors anxious about Trump-Xi meeting
* Financial sector up after four-day losing streak
* Energy stocks gain with oil prices
* Indexes up: Dow 0.07 pct, S&P 0.19 pct, Nasdaq 0.25 pct
By Sinead Carew
April 6 Wall Street's major indexes closed
slightly higher on Thursday but finished well off session highs
as investors were nervous about upcoming talks between China's
President Xi Jinping and U.S. President Donald Trump.
The leaders of the world's two biggest economies are to
greet each other at the president's Mar-a-Lago retreat in Palm
Beach, Florida, late Thursday afternoon, kicking off a summit
that will conclude with a working lunch on Friday.
Investors are anxious for news on China-U.S. trade relations
and discussions on reining in North Korea's arms program,
according to market participants.
"People are concerned because this could go south in a hurry
because the Chinese president is a savvy politician with a lot
of experience in these types of things and you have a novice
(U.S.) politician on the world stage," said Peter Costa,
President, Empire Executions Inc in New York.
"The meeting is going to set the tone for what comes ahead
and you don't want the tone to be negative," said Costa.
Stocks pared gains in the late afternoon after U.S.
Secretary of State Rex Tillerson made comments on the meeting.
From Mar-a-Lago, Tillerson said the United States will
"pursue economic engagement with China that prioritizes the
economic wellbeing of the American people" and would not shy
away from frank discussions.
“Tillerson sounded like he was taking a little bit of a
hardline stance with China,” said Brian Jacobsen, chief
portfolio strategist at Wells Fargo Funds Management in
Menomonee Falls, Wisconsin. “This increases the risks that this
could be a bit more confrontational than a friendly get-together
between Presidents Trump and Xi.”
The Dow Jones Industrial Average closed up 14.8
points, or 0.07 percent, to close at 20,662.95, the S&P 500
gained 4.54 points, or 0.19 percent, to 2,357.49 after
reaching a session high of 2364.16 earlier in the day.
The Nasdaq Composite added 14.47 points, or 0.25
percent, to 5,878.95.
The stock market had dramatically reversed course to close
lower on Wednesday after signals that the Fed would start to
trim its $4.5 trillion balance sheet this year.
But investors reconsidered their reactions on Thursday,
according to Stephen Massocca, Senior Vice President at Wedbush
Securities in San Francisco.
"The Fed isn't going to be indiscriminately pulling the prop
out from under the market. There will be some sensitivity to
what's going on in the economy," said Massocca.
Four of the 11 major S&P sectors ended lower. The energy
index rose 0.8 percent as oil prices rose
to near one-month highs. Comcast Corp was the
S&P's biggest boost with a 2.1 percent gain to $38.13 after it
announced a wireless service.
Some investors are cautious ahead of the start of the
corporate earnings season next week given the lofty valuations.
The S&P 500 index is trading at about 18 times forward earnings
estimates, above its long-term average of 15.
Advancing issues outnumbered declining ones on the NYSE by a
3.20-to-1 ratio; on Nasdaq, a 2.18-to-1 ratio favored advancers.
The S&P 500 posted 8 new 52-week highs and four new lows;
the Nasdaq Composite recorded 32 new highs and 61 new lows.
About 6.4 billion shares changed hands on U.S. exchanges
compared with the 6.8 billion average for the last 20 sessions.
(Additional reporting by Rodrigo Campos in New York and
Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza
and James Dalgleish)