(Corrects headline to say weighs, not weigh)
* December trade deficit falls to $44.3 bln vs. est. $45 bln
* Michael Kors drops to more than one-year low on forecast
* Oil prices fall about 2 pct
* Indexes up: Dow 0.20 pct, S&P 0.02 pct, Nasdaq 0.17 pct
By Yashaswini Swamynathan and Tanya Agrawal
Feb 7 U.S. stocks pared gains in early afternoon
trading on Tuesday as a fall in oil prices dragged down energy
The Dow Jones Industrial Average and the Nasdaq Composite
hit all-time highs just after the market opened, with the S&P
500 coming within spitting distance of yet another record high.
Oil prices were pressured by sluggish demand and evidence of
a burgeoning revival in U.S. shale production that could
complicate efforts by OPEC and other producers to reduce a
The energy index fell 1.7 percent, leading the
decliners. Chevron's 1.3 percent fall and Exxon's
1 percent drop weighed the most on the S&P and the Dow.
Markets have rallied sharply after Trump's election victory
in November, riding on hopes that his plans including simpler
regulations, higher infrastructure spending and tax cuts will
boost the economy.
However, the lack of details regarding economic policies and
Trump's focus on isolationist policies, including a travel ban
on seven mainly Muslim nations, have also made investors
With the earnings season at its peak, stock valuations are
in focus given the run-up in shares. The S&P 500 is trading at
17.7 times forward 12-month earnings, above the 10-year median
of 14.7 times, according to StarMine data.
Fourth-quarter earnings of S&P 500 companies are estimated
to have risen 8.2 percent - the best in nine quarters.
"We've been getting some back and forth between the new
administration's business-friendly policies versus the
disruptions economically and politically from the immigration
and trade-related issues," said Jason Pride, director of
investment strategy at Glenmede in Philadelphia.
"However, at the end of the day, the expansion is
continuing, the economy and earnings are growing and that should
A report from the U.S. Commerce Department showed trade
deficit fell more than expected in December as exports rose to
their highest level in more than 1-1/2 years, outpacing an
increase in imports.
At 12:37 p.m. ET (1737 GMT) the Dow Jones industrial average
was up 40.94 points, or 0.2 percent, at 20,093.36.
The S&P 500 was up 0.46 points, or 0.02 percent, at
2,293.02 and the Nasdaq Composite was up 9.87 points, or
0.17 percent, at 5,673.42.
Shares of Michael Kors dropped as much as 15.4
percent to a more than one-year low of $34.92, after the handbag
maker cut its full-year revenue forecast.
Health insurer Centene was up 5.7 percent at $67.25
following better-than-expected quarterly revenue and profit.
General Motors slipped 4.8 percent to $35.04 after
the automaker said fourth-quarter net income fell partly because
of $500 million in foreign exchange losses. The stock was among
the biggest drags on the S&P.
Twenty-First Century Fox fell 1.5 percent to $30.61
after its quarterly revenue missed Wall Street expectations.
Declining issues outnumbered advancers on the NYSE by 1,624
to 1,201. On the Nasdaq, 1,614 issues fell and 1,127 advanced.
The S&P 500 index showed 27 new 52-week highs and three new
lows, while the Nasdaq recorded 83 new highs and 29 new lows.
(Reporting by Yashaswini Swamynathan and Tanya Agrawal in
Bengaluru; Editing by Anil D'Silva)