Following the modest pullback seen over the course of the previous session, the US markets ended marginally lower on Tuesday, as a looming December 15 deadline for additional tariffs on Chinese goods. The weakness on markets came as traders digested the latest report on the trade front, with House Democrats announcing an agreement on President Donald Trump's trade deal with Canada and Mexico. The deal will allow the United States-Mexico-Canada Agreement, or the USMCA, Trump’s replacement for the North American Free Trade Agreement, or NAFTA, to move forward in the House. House Speaker Nancy Pelosi, D-Calif., called the new agreement much better than NAFTA and argued changes negotiated by Democrats make the deal infinitely better than what was initially proposed by the administration. The news of the USMCA deal came on the heels of conflicting reports regarding trade talks between the US and China.
On the economic data front, revised data released by the Labor Department showed US labor productivity dipped by slightly less than originally estimated in the third quarter. The report said labor productivity edged down by 0.2 percent in the third quarter compared to the previously reported 0.3 percent drop. Street had expected the decrease in productivity to be revised to just 0.1 percent. The modest decrease in productivity in the third quarter compares to the 2.5 percent jump in productivity seen in the second quarter. Meanwhile, the Labor Department said unit labor costs surged up by a revised 2.5 percent in the third quarter compared to the previously reported 3.6 percent spike. Labor cost growth had been expected to be revised to 3.3 percent. The report also showed the previously reported 2.4 percent jump in labor costs in the second quarter was downwardly revised to just 0.1 percent.
Dow Jones Industrial Average declined 27.88 points or 0.10 percent to 27881.72, Nasdaq lost 5.64 points or 0.07 percent to 8616.18 and S&P 500 was down by 3.44 points or 0.11 percent to 3132.52.
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