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Stocks should rise a lot more if China and the U.S. strike a trade deal since that event is not fully priced into the market yet, according to a study conducted by Renaissance Macro Research.
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 U.S. stock benchmarks opened lower Thursday as investors awaited the start of a fresh round of talks on trade between the U.S. and China and as a mixed bag of data, with a focus on the first negative reading of Philadelphia-area manufacturing activity since 2016, caused a pause in buying. The Dow Jones Industrial Average edged 52 points, or 0.2%, at 25,885, while the S&P 500 index edged 0.3% lower at 2,776, and the Nasdaq Composite Index fell 0.3% at 7,469. Drawing the most attention in the morning was apparent weakness in manufacturing, with a reading of Philadelphia-area performance, known as the Philly Fed index, in February dropping sharply in to negative territory. The index fell to a seasonally adjusted reading of -4.1 from 17 in the prior month, marking the first negative read since May of 2016 and falling below expectations for 14, based on a survey of economists polled by Econoday. Minutes from the Federal Reserve on Wednesday also appeared to signal a central bank in pause mode, but some signs of a split in how members of the Fed viewed the outlook for the economy may be stoking some anxiety. Meanwhile, current U.S.-China trade negotiations remained in focus after President Donald Trump signaled he would be flexible on the March 1 deadline for an agreement. Midlevel U.S. and Chinese negotiators having been holding meetings this week.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Shares of Johnson & Johnson fell 1.4% in morning trade Thursday, enough to lead the Dow Jones Industrial Average's losers, after the consumer products and drug maker disclosed it received federal inquiries related to the safety of its baby powder. The company said in its 10-K filing with the Securities and Exchange Commission that it received subpoenas from the Senate Committee on Health, Education, Labor and Pensions, the Department of Justice and the SEC to produce documents regarding liability suits. The stock's price decline was shaving about 13 points off the Dow's price, which was down 82 points with 22 of 30 components losing ground.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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