Shares of industrial and transportation companies fell after weak factory data and the opening of new fronts in the trade war.
The Institute for Supply Management's manufacturing index decreased to 48.1 in November from 48.3 in October, a reflection of what one economist from the research group said was ongoing pressure from the trade war.
The data dashed hopes that a slowdown in the U.S. manufacturing sector was moderating. It also reversed an increase in risk appetite earlier in the trading session that had been sparked by stronger-than-anticipated Chinese factory data.
"Risk markets in general and equity markets in particular appear to be pricing in a rebound in the manufacturing sector that is not yet in evidence," said Eric Winograd, senior U.S. economist with AllianceBernstein, in e-mailed commentary.
Garrett Motion filed suit against its former parent, Honeywell International, alleging that it was forced into a burdensome agreement related to asbestos liabilities.
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