* New York, others challenge Trump over energy efficiency
* Bank stocks pull S&P 500 lower
* Trump has said Xi meeting to be "a very difficult one"
* Indexes down: Dow 0.34 pct, S&P 0.42 pct, Nasdaq 0.36 pct
(Adds details, comments, updates prices)
By Yashaswini Swamynathan
April 3 U.S. stocks reversed course to trade
lower on Monday after New York and other states challenged the
Trump administration for illegally blocking energy efficiency
standards, casting further doubt on the new government's ability
to push through planned reforms.
The move by a coalition of U.S. states and municipalities
comes barely two weeks after President Donald Trump's
administration had to pull legislation to overhaul the U.S.
Wall Street has rallied since Trump's election victory in
November on promises that included tax cuts and looser
regulations. But that rally has stalled of late as investors
fret if these promises will be fulfilled given the recent the
administration's recent setbacks.
Trump is also set to meet Chinese President Xi Jinping later
this week in what the U.S. president has said would be "a very
difficult one" as the United States could not risk massive trade
deficits and job losses.
At 10:59 a.m. ET the Dow Jones Industrial Average was
down 71.23 points, or 0.34 percent, at 20,591.99, the S&P 500
was down 10.01 points, or 0.42 percent, at 2,352.71 and
the Nasdaq Composite was down 21.25 points, or 0.36
percent, at 5,890.49.
The CBOE Volatility index, known as Wall Street's
'fear gauge' was up at 13.15 points, on track to rise for the
third straight trading day.
Seven of the major S&P 500 sectors were in the red, led by
financials, which dropped 1.11 percent.
Investors also await the earnings season to justify lofty
valuations. The S&P 500 is trading at about 18 times earnings
estimates for the next 12 months, above its long-term average of
"Valuations at present are reasonably full ... what we need
to see for the balance of this year is for earnings to justify
the valuations we have seen thus far," said Bill Northey, chief
investment officer at Private Client Group of U.S. Bank.
Among stocks, Tesla's shares were up 2.7 percent at
$286.06 after the electric carmaker said on Sunday its vehicle
deliveries increased 69 percent in the first quarter.
However, General Motors dropped 3.1 percent and Ford
declined 2.3 percent after the two automakers reported
Accenture slipped 2.3 percent to $117 after Goldman
Sachs downgraded the stock to "sell" from "neutral".
Declining issues outnumbered advancers on the NYSE by 1,779
to 1,041, for a 1.71-to-1 ratio on the downside. On the Nasdaq,
1,849 issues fell and 841 advanced for a 2.20-to-1 ratio
The S&P 500 index showed 17 new 52-week highs and 4 new
lows, while the Nasdaq recorded 68 new highs and 15 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by