While you were sleeping: UDATED Wall Street languishes as uncertainty continues

Wall Street languished as concern about US President Donald Trump's protectionist stance weighed on optimism about the outlook for the economy and corporate profits.

At the close, the Dow Jones Industrial Average is down 6.03 points, or 0.03%, at 19,884.91. The Standard & Poor's 500 Index was up by just over a point at 2280.84 while the Nasdaq Composite Index slipped 0.1% to 5636.20.

"What you have is a tug-of-war between near-term positives in terms of economic data and earnings season juxtaposed against the confusion over what's important in the first 100 days of the new administration and when we will get to see things like tax reforms," Art Hogan, chief market strategist at Wunderlich Equity Capital Markets in New York, told Reuters.

The Dow was mixed as advances in shares of Merck and those of Cisco, which traded 2.9% and 1.9 higher respectively, offset slides in shares of UnitedHealth Group and those of Boeing, recently down 1.2% and 1.1% respectively.

The uncertainty created by the new Trump presidency also weakened the greenback.

"On the one hand economic fundamentals imply the dollar should rise but on the other hand there is political risk," Andrew Milligan, head of global strategy at Standard Life Investments in Edinburgh, told Bloomberg.

"If the political risk premium rises too much, then it's contrary to what the fundamentals are actually saying."

Infant formula takeover
Bucking the trend on Wall Street, Mead Johnson Nutrition Co shares soared after the UK's Reckitt Benckiser Group said it is in advanced negotiations to acquire the maker of baby food for about $US16.7 billion.

"Reckitt Benckiser had never even been considered as a potential acquirer," Andrew Wood, an analyst at Sanford C Bernstein, said in a note, Bloomberg reported.

"Infant formula was considered too far away from its core business. Hence the news was very surprising to us."

Mead Johnson shares traded 21% higher at $US84.93 compared with the offer price $US90 a share in cash.

"While a deal for Mead Johnson would be clearly earnings per share enhancing and indeed transformative, it is unclear that all shareholders will welcome the addition of a new product category where Reckitt Benckiser has limited prior experience," Liberum analysts said, according to Reuters.

Pfizer to sell unit
In other deal news, Pfizer is exploring a sale of a group of treatments in cardiology, urology and primary care as the US drugmaker looks for ways to raise cash and streamline its portfolio, Bloomberg reported, citing people familiar with the matter.

The drugs generate sales of more than $US700 million and could fetch more than $US2 billion from a buyer, the people said, asking not to be identified because the deliberations are private, according to Bloomberg.

US government bonds weakened, with the yield on the 10-year Treasury note edging up to 2.470% from 2.466% previously. Gold rose 0.9% to $US1216.70 an ounce, hovering near a two-month high,

In Europe, the Stoxx 600 Index finished the day with a 0.3% decline from the previous close, amid disappointing earnings including from Deutsche Bank and Daimler.

France's CAC 40 Index was steady, closing 0.01% lower, while Germany's DAX Index fell 0.3%.

The UK's FTSE 100 Index rose 0.5%.

(BusinessDesk)