S&P 500, Nasdaq climb ahead of Fed minutes; markets analyze Trump's tariff threats
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Ford, GM fall after tariff threats
Best Buy drops after trimming annual sales, profit forecast
Amgen falls as keenly awaited obesity drug data disappoints
Indexes: Dow down 0.36%, S&P 500 up 0.36%, Nasdaq up 0.54%
Updates at mid session trading
By Johann M Cherian and Purvi Agarwal
Nov 26 (Reuters) -The benchmark S&P 500 and the Nasdaq extended recentgains on Tuesday, as technology stocks rebounded, whileinvestors parsed Donald Trump's tariff pledges on top trade partners and awaited minutes from the Federal Reserve's latest meeting.
President-elect Trump said he would impose a 25% conditional tariff on Canadian and Mexican imports that could violate a free-trade deal he negotiated during his previous term. He also outlined "an additional 10% tariff, above any additional tariffs" on imports from China, raising the risk of trade wars.
Automakers such as Ford F.N and General Motors GM.N -that have highly integrated supply chains across Mexico, the U.S. and Canada - lost 2.1% and 7.2%, respectively.
"The concern is that some products are going to become more costly and that will mean revenue for those companies that are possibly manufacturing those goods overseas is going to decline," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"It's a lot of back and forth right now because investors are trying to position themselves for January and the days after and they're not really sure."
At 11:32 a.m. ET, theDow Jones Industrial Average .DJI fell 161.03 points, or 0.36%, to 44,575.54, the S&P 500 .SPX gained 21.45 points, or 0.36%, to 6,008.82 and the Nasdaq Composite .IXIC gained 102.77 points, or 0.54%, to 19,157.61.
Gains in megacaps such as Nvidia NVDA.O, Microsoft MSFT.O and Apple AAPL.O boosted the information technology sector .SPLRCT and the tech-heavy Nasdaq.
The blue-chip Dow was weighed down by declines in Amgen AMGN.O, which slid 11% after its experimental obesity drug fell short of expectations.
Yieldson Treasury bonds that slipped in the previous session following Scott Bessent's selection as incoming Treasury secretary, rose and kept a lid onequities' gains.
The S&P 500 touched a record high on Monday and logged its sixth-straight session of gains, while the Russell 2000 .RUT also scaled an all-time high after three years. On the day, the small-cap index fell 0.6%.
Later in the day, investors will parse minutes from the central bank's meet earlier this month for any clues on its policy trajectory next year,ahead of Wednesday'spersonal consumption expenditure report.
Analysts say Trump's trade and fiscal policies, though seen as a positive for companies and economic growth, could stoke inflation pressures and slowdown the Fed's monetary policy easing cycle.
Minneapolis Federal Reserve President Neel Kashkari, typically seen ashawkish on monetary policy, said he is open to cutting interest rates again next month.
Traders have recently swayed in placing their bets on the central bank's move in December and currently favor a25-basis point interest rate cut by a 56.2% chance, as per the CME Group's FedWatch Tool.
Among others, EliLilly rose 5.9% after U.S. President Joe Biden was set to propose expanding Medicare and Medicaid coverage for anti-obesity drugs.
Best Buy BBY.N lost 6.9% and was among top decliners on the S&P 500 after trimming its annual profit and sales forecasts.
Declining issues outnumbered advancers by a 1.95-to-1 ratio on the NYSE and by a 1.49-to-1 ratio on the Nasdaq.
The S&P 500 posted 38 new 52-week highs and three new lows, while the Nasdaq Composite recorded 78 new highs and 66 new lows.
Reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Maju Samuel
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