* Gold, fear gauge hit highest levels since November
* Financial top S&P sector loser; real estate only gainer
* Banks set to kick-of 1st-qtr earnings season on Thursday
* Indexes down: Dow 0.23 pct, S&P 0.42 pct, Nasdaq 0.48 pct
(Updates to early afternoon)
By Yashaswini Swamynathan
April 11 U.S. stocks came off session lows on
Tuesday, but the S&P 500 was still on track for its worst day in
three weeks amid mounting geopolitical tensions.
The White House said on Monday President Donald Trump was
open to authorizing additional strikes on Syria if its
government uses chemical weapons again or deploys barrel bombs.
Trump ordered a missile strike on the war-torn country last
week as a response to what his administration said was a poison
gas attack, pitting the United States against Russia, which
backs Syrian President Bashar-al-Assad.
Adding to the dour mood, North Korea state media warned of a
nuclear attack on the United States if provoked as a U.S. Navy
strike group moved toward the western Pacific.
Prices of spot gold jumped to their highest since
November. Demand for U.S. Treasuries and the Japanese yen also
The dollar index softened, while oil prices eased
from five-week highs.
At 12:27 p.m. ET (1627 GMT), the Dow Jones Industrial
Average was down 47.11 points, or 0.23 percent, at
20,610.91, the S&P 500 was down 9.88 points, or 0.42
percent, at 2,347.28 and the Nasdaq Composite was down
28.49 points, or 0.48 percent, at 5,852.44.
However, Trump's comments during a meeting with chief
executives of U.S. companies helped the market recoup some
Trump said his administration was working to reduce
regulations and revamp the Dodd-Frank law, which may be
eliminated and replaced with "something else."
The tailwinds for the market are fundamentals and the hope
of pro-growth policy, while the negatives are the
unpredictability of geopolitical risks, said Art Hogan, chief
market strategist at Wunderlich Equity Capital Markets in New
Ten of the eleven major S&P 500 sectors were lower.
The financial sector was the biggest loser, with a
0.83 percent decline. Banks, which are scheduled to start
reporting quarterly earnings this week, were the top drags.
Technology sector's 0.7 percent decline was
largely due to a 1 percent fall in Apple. The iPhone
maker was also the biggest drag on the three main indexes.
Real estate - considered a defensive play of the
broader index - was the outlier. Utilities and
consumer staples, the other defensive sectors, fell
The CBOE Volatility index, also called Wall Street's
"fear gauge", shot up to its highest level in five months.
Thursday will be the last trading day of the week on Wall
Street ahead of the Good Friday holiday.
Shares of United Continental dropped 2.6 percent
after a worldwide backlash erupted against the carrier over a
passenger who was dragged off one of its U.S. flights.
Online coupon provider RetailMeNot jumped nearly 50
percent to $11.55 after agreeing to be bought by marketing
services company Harland Clarke.
Walt Disney rose 0.6 percent after being added to
Goldman Sachs' conviction list.
Declining issues outnumbered advancers on the NYSE by 1,473
to 1,380. On the Nasdaq, 1,391 issues rose and 1,353 fell.
The S&P 500 index showed four 52-week highs and one low,
while the Nasdaq recorded 41 highs and 38 lows.
(Reporting by Yashaswini Swamynathan in Bengaluru and Caroline
Valetkevitch in New York; Editing by Sriraj Kalluvila)