* Emails show Russian prosecutor offered Trump Jr.
information on Clinton
* Yellen to testify later in the week
* Indexes down: Dow 0.1 pct, S&P 0.28 pct, Nasdaq 0.08 pct
By Ankur Banerjee and Anya George Tharakan
July 11 (Reuters) – U.S. stocks pared some of its losses on
Tuesday after falling sharply as emails disclosed by President
Donald Trump’s eldest son cited Russian support for his father’s
Donald Trump Jr was told a Russian prosecutor was offering
incriminating information about Hillary Clinton as part of
Russian government support.
Trump Jr. agreed to meet with a Kremlin-linked lawyer during
the campaign after being promised damaging information about
Clinton, the New York Times reported on Sunday.
Financial markets were jolted by the revelation as investors
assessed its impact on Trump administration’s proposed policies.
“I think people are worried that it just means more
political uncertainty, and sort of a continuation of the
stalemate in Washington, a continuation of the delay in trying
to get the Trump agenda passed through Congress,” said Robert
Pavlik, chief market strategist at Boston Private Wealth in New
The dollar index, which tracks the greenback against
six major rivals, also turned negative after the news of the
Part of the drop in the market could have been due to
algorithmic trading, said Bucky Hellwig, senior vice president
at BB&T Wealth Management in Birmingham, Alabama. “They look for
certain words in news, so we saw this selloff.”
Stocks were slightly higher in early trading ahead of Federal
Reserve chief Janet Yellen’s two-day testimony starting on
Wednesday as the central bank prepares to unwind the massive
hoard of bonds it bought to ease the financial crisis.
“We’ve got Yellen’s testimony tomorrow, there may be a
little bit of nervousness ahead of that … the semi-annual
monetary policy testimony has often been a big deal for the
markets,” Scott Brown, chief economist at Raymond James in St.
“I think there may be some fears that she’s going to come
out relatively hawkish.”
Investors will be looking at second-quarter earnings reports
on Friday from big U.S. banks including JPMorgan Chase,
Wells Fargo and Citigroup.
Ten of the 11 major S&P 500 sectors were lower, dragged down
by losses in financials sector.
At 12:30 a.m. EDT the Dow Jones industrial average
was down 22.01 points, or 0.1 percent, at 21,386.51, the S&P 500
was down 6.84 points, or 0.281779 percent, at 2,420.59
and the Nasdaq Composite was down 4.77 points, or 0.08
percent, at 6,171.63.
Snap Inc shares fell 5.6 percent on Tuesday, after
lead underwriter Morgan Stanley downgraded the stock and raised
concerns about the social media company’s ability to compete
against rival Instagram.
Shares of Arena Pharmaceuticals Inc soar about 50
percent after the drug developer said on Monday its experimental
drug for a rare but deadly lung disease met the main goal in a
Declining issues outnumbered advancers on the NYSE by 1,438
to 1,336, for a 1.08-to-1 ratio on the downside. On the Nasdaq,
1,380 issues fell and 1,355 advanced for a 1.02-to-1 ratio
(Reporting by Ankur Banerjee in Bengaluru, Additional reporting
by Caroline Valetkevitch in New York; Editing by Arun Koyyur)