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* U.S.-North Korean nuclear summit starts in Hanoi
* Impact of India-Pakistan tensions spreads from Asia to Europe
* Fed’s Powell to appear in Congress for second time on Wednesday
* Mylan hit by profit miss; Best Buy up on robust profit view
* Indexes off: Dow 0.10 pct, S&P 0.08 pct, Nasdaq 0.07 pct (Updates to open)
By Shreyashi Sanyal
Feb 27 (Reuters) - U.S. stocks edged lower on Wednesday, with technology shares leading the losses, as the second U.S.-North Korean nuclear summit kicked off and tensions flared up between nuclear-armed neighbors India and Pakistan.
North Korean leader Kim Jong Un and Donald Trump met in Hanoi, with the U.S. president saying he was not walking back on U.S. demands for North Korea’s denuclearisation.
India and Pakistan both said on Wednesday they shot down each other’s fighter jets, a day after Indian warplanes struck inside Pakistan for the first time since a 1971 war, prompting world powers to urge restraint.
“Tension between India and Pakistan is weighing on markets this morning ahead of a very busy day of events,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“We don’t expect (Federal Reserve Chair Jerome) Powell’s second round of testimony before the U.S. House Financial Committee to change, thereby keeping the focus on geopolitical worries and the Trump-Kim summit that will likely lead to a mixed market session.”
Powell said on Tuesday that the Fed was in “no rush to make a judgment” about further changes to interest rates and that rising risks and recent soft data should not prevent solid growth for the U.S. economy this year.
The Fed’s dovish signals and optimism around China-U.S. trade talks have boosted equities in recent weeks, pushing the benchmark S&P 500 index to within roughly 5 percent of its record closing high hit in late September.
Of the 11 major S&P sectors, ten were trading lower, with a 0.25 percent fall in technology stocks weighing the most.
Pressuring the sector were declines in shares of Microsoft Corp and Intel Corp.
At 9:42 a.m. ET the Dow Jones Industrial Average was down 24.76 points, or 0.10 percent, at 26,033.22, the S&P 500 was down 2.29 points, or 0.08 percent, at 2,791.61 and the Nasdaq Composite was down 5.31 points, or 0.07 percent, at 7,543.99.
Shares of Mylan NV sank 13.7 percent and pressured the healthcare sector, which fell 0.19 percent, after the generic drugmaker missed quarterly profit estimates and forecast weak 2019 earnings, as it grappled with significant problems at its Morgantown, West Virginia plant.
The energy sector was the only gainer with a 0.30 percent rise as crude prices rose.
Best Buy Co Inc jumped 13.9 percent after the consumer electronics retailer beat analysts’ estimates for quarterly same-store sales, while announcing a hike in dividend and a plan to buy back shares
The Commerce Department will release its report on December factory goods orders at 10:00 a.m. ET, likely showing a 0.5 percent rise, compared with an unexpected fall in November.
The factory data comes ahead of Commerce Department’s advance fourth-quarter gross domestic product report on Thursday, which will include some of the data that would normally go into the second GDP estimate.
The GDP report could have a very big impact on markets, because it will be the first and second report at the same time due to the government shutdown and will be the first look of the quarter, said Randy Frederick, vice president of trading and derivatives for Charles Schwab.
Declining issues outnumbered advancers for a 1.11-to-1 ratio on the NYSE and for a 1.01-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and two new lows, while the Nasdaq recorded 18 new highs and nine new lows. (Reporting by Shreyashi and Medha Singh in Bengaluru; Editing by Anil D’Silva)