* Chinese exports drop 10 pct in September - report
* Gold ticks up, dollar near session low
* Materials, financials lead decliners on S&P
* Indexes down: Dow 0.65 pct, S&P 0.72 pct, Nasdaq 0.76 pct
(Updates to open)
By Yashaswini Swamynathan
Oct 13 U.S. stocks were trading near one-month
lows on Thursday, amid losses across sectors, as investors
fretted about China's weak economic data and the prospects of an
interest rate hike by the end of the year.
Data showed China's exports fell 10 percent in September,
far worse than the markets had expected, while imports
unexpectedly shrank, reviving concerns about the health of the
world's second-largest economy.
The Fed on Wednesday released the minutes of its last
rate-setting meeting that showed several policymakers felt a
rate hike was warranted "relatively soon" if the U.S. economy
continued to strengthen.
Traders slashed their bets on a December rate hike to 65.6
percent from 70 percent shortly after the markets opened, data
from the CME Group's FedWatch tool showed.
Prices of gold, a safe haven, ticked higher, while
the dollar, which is near a seven-month high, was trading
near session lows of 97.76.
"China's trade data spooked global markets and it comes at a
time when we have a Federal Reserve that wants to raise rates
soon," said John Brady, senior vice president at R.J. O'Brien &
Associates in Chicago.
"It's a modest risk-off sentiment today."
Market valuations will be put to test during the earnings
season, with profits of S&P 500 companies currently expected to
fall 0.7 percent, according to Thomson Reuters data.
The benchmark S&P 500 index is trading at 17 times forward
earnings, compared with its 10-year median of 14.7, according to
At 9:36 a.m. ET (1336 GMT), the Dow Jones industrial average
was down 117.24 points, or 0.65 percent, at 18,026.96.
The S&P 500 was down 15.37 points, or 0.72 percent,
at 2,123.81 and the Nasdaq Composite was down 39.80
points, or 0.76 percent, at 5,199.22.
Ten of the 11 major S&P indexes were lower, with materials
and financials falling more than 1 percent.
Utilities, perceived as safer equity assets, were
the only gainers.
Deutsche Bank's Frankfurt-listed stock fell 3.12
percent after sources told Reuters that the bank was introducing
a hiring freeze as it seeks to cut costs amid a deep strategic
The bank's U.S. shares were down 2.9 percent.
Big U.S. banks, including Morgan Stanley, JPMorgan
, Bank of America and Citigroup, fell about
Wells Fargo fell slightly to $44.96 after Chief
Executive John Stumpf abruptly departed on Wednesday following a
sales scandal that damaged the reputation of the lender.
Marriott Vacations plunged nearly 10 percent after
reporting a sharp decline in quarterly revenue from Europe.
Wynn Resorts is scheduled to report after market
close on Thursday, while U.S. banks start reporting from Friday.
Declining issues outnumbered advancing ones on the NYSE by
2,246 to 420. On the Nasdaq, 1,784 issues fell and 395 advanced.
The S&P 500 index showed no new 52-week highs and five new
lows, while the Nasdaq recorded seven new highs and 35 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by