Wall Street's main indexes swung between gains and losses on Thursday, as optimism fueled by progress in US-China trade talks was clouded by fears of an economic slowdown after a cut in fourth-quarter GDP growth. Data showed domestic economy slowed more than initially thought in the fourth quarter, keeping growth in 2018 below the 3 percent annual target, and corporate profits failed to rise for the first time in more than two years.
Growth worries hit markets last week when the Federal Reserve abandoned projections for any interest rate hikes this year and the US Treasury yield curve inverted for the first time since 2007.
The benchmark 10-year yields rose off their 15-month lows on Thursday but the yield curve prolonged its inversion. An inverted yield could indicate that a recession is likely in one to two years.
"It's mixed messages on growth, trade and treasuries. Growth is slower but with few signs of recession, trade is positive but not as positive as investors were hoping and treasuries are stable but not as much as yesterday," said Kate Warne, investment strategist at Edward Jones in St. Louis.
Trade sensitive industrial stocks rose 0.33 percent, with Caterpillar Inc up 0.6 percent and 3M Co gaining 0.3 percent. At 12:53 p.m. ET the Dow Jones Industrial Average was up 16.96 points, or 0.07 percent, at 25,642.55. The S&P 500 was up 2.11 points, or 0.08 percent, at 2,807.48 and the Nasdaq Composite was up 11.79 points, or 0.15 percent, at 7,655.16.
Consumer discretionary stocks rose 0.42 percent, led by a 14.9 percent gain in shares of PVH Corp. The Calvin Klein owner forecast full-year adjusted profit and sales above Wall Street expectations. Nielsen Holdings Plc tumbled 10.4 percent, the most among S&P 500 companies, after a report that private equity firm Blackstone Group backed out of an auction to buy the ratings company.