Dow set to drop 200 points at the open as trade tensions linger

Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” ET, Federal


Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” ET, Federal
Dow set to drop 200 points at the open as trade tensions linger Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert spriha srivastava, fred imbert, spriha srivastava, arjun kharpal
Keywords: news, cnbc, companies, fed, trade, linger, york, worth, talks, points, open, fell, dow, futures, drop, 200, et, set, china, week, tensions


Dow set to drop 200 points at the open as trade tensions linger

Stock index futures traded lower Friday as trade tensions between the U.S. and China continue to dominate investor sentiment.

At 8:06 a.m. ET, Dow Jones Industrial Average futures indicated a drop of 200 points at the open. Futures for the S&P 500 and Nasdaq 100 also fell.

Chinese Commerce Ministry spokesman Gao Feng said Thursday, according to state-run news agency Xinhua, that the U.S. is exhibiting “bullying behavior” with its latest moves on the trade front, noting it is “regrettable that the U.S. side unilaterally escalated trade disputes, which resulted in severe negotiating setbacks.”

The U.S. hiked tariffs on $200 billion worth of Chinese goods last week while China retaliated Monday with higher levies on $60 billion worth of U.S. products. The moves led to a massive sell-off to start off the week. But the major indexes have clawed back most of their losses through Thursday’s close.

President Donald Trump’s administration then moved to make it harder for U.S. companies to do business with Huawei, a giant telecommunications company in China. Shares of U.S. suppliers like Qualcomm, Qorvo and Micron Technology fell 1.9%, 1.6% and 1.4%, respectively.

Chinese stocks fell sharply overnight. The Shanghai Composite dropped 2.5% and posted its longest weekly losing streak since July 2018.

Investors also fretted over a breakdown in Brexit talks. The U.K.’s two largest political parties failed to strike a deal on the country’s exit from the European Union after six weeks of talks. Jeremy Corbyn, the Labour Party leader, told Prime Minister Theresa May that talks had “gone as far as they can go. ” Sterling fell 0.4% to $1.2751.

Stocks posted solid gains on Thursday, largely driven by strong earnings from Walmart and Cisco Systems, as the major indexes notched their third consecutive gain.

On the data front Friday, consumer sentiment numbers are due at 10 a.m. ET. Meanwhile, Deere is set to report its earnings before the bell.

A number of Fed speeches are also scheduled for Friday. At 10 a.m. ET, Federal Reserve Vice Chair Richard Clarida will be speaking on the Fed’s review of its monetary policy strategy, followed by New York Fed President John Williams’ speech in New York at 11:15 a.m. ET, and Dallas Fed President Robert Kaplan’s speech at 1:10 p.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: fred imbert spriha srivastava, fred imbert, spriha srivastava, arjun kharpal
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Dow rises more than 100 points, erasing 190-point drop, as Trump delays auto tariffs

Stocks rose on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs. The Dow Jones Industrial Average closed up 115.97 points at 25,648.02 after falling as much as 190 points earlier in the session. The S&P 500 gained 0.6% to end the day at 2,850.96 while the Nasdaq Composite rose 1.1% to 7,822.15. The U.S. also raised the possibility of slapping tariffs on an additional $300 billion in goods from China. “Tariffs result in higher inflation, increased po


Stocks rose on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs. The Dow Jones Industrial Average closed up 115.97 points at 25,648.02 after falling as much as 190 points earlier in the session. The S&P 500 gained 0.6% to end the day at 2,850.96 while the Nasdaq Composite rose 1.1% to 7,822.15. The U.S. also raised the possibility of slapping tariffs on an additional $300 billion in goods from China. “Tariffs result in higher inflation, increased po
Dow rises more than 100 points, erasing 190-point drop, as Trump delays auto tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: fred imbert
Keywords: news, cnbc, companies, 190point, trade, delays, sp, rises, points, growth, stocks, trump, tariffs, nasdaq, dow, raised, drop, rose, auto, erasing, gained, china


Dow rises more than 100 points, erasing 190-point drop, as Trump delays auto tariffs

Stocks rose on Wednesday on news that President Donald Trump plans to delay the implementation of auto tariffs.

The Dow Jones Industrial Average closed up 115.97 points at 25,648.02 after falling as much as 190 points earlier in the session. The S&P 500 gained 0.6% to end the day at 2,850.96 while the Nasdaq Composite rose 1.1% to 7,822.15.

Three sources told CNBC the administration will delay those levies by up to six months. The news, which was first reported by Bloomberg News, sent auto stocks higher. Fiat Chrysler’s U.S.-listed shares rose 1.9% while Ford Motor and General Motors gained 1.2% and 0.9%, respectively.

“If you look at today’s market action, it does show how sensitive investors have become to trade news,” said Jeff Kravetz, regional investment director at U.S. Bank Wealth Management. “What it may do is put equities in a range-bound mode as investors wait on the outcomes of trade tensions.”

Other stocks lifting the market included Boeing and Alphabet. Boeing shares rose 0.8% after the Federal Aviation Administration said it expects the aerospace giant to submit its software fix for the 737 Max plane soon. Alphabet, meanwhile gained 4.1% after Deutsche Bank raised its price target on the tech giant to $1,400 from $1,300.

Equities initially fell after the release of weaker-than-expected economic data stoked fears that the U.S.-China trade war is dragging down global economic growth.

U.S. retail sales fell 0.2% in April, the Commerce Department said Wednesday. Economists polled by Dow Jones expected an increase of 0.2%.

Overnight, data released in China showed industrial production rose by 5.4% in April on a year-over-year basis, notching the slowest pace of growth since May 2003. Economists polled by Refinitiv expected an expansion of 6.5%. Chinese retail sales also disappointed economists.

The disappointing data from both countries comes as trade tensions between China and the U.S. have reignited. Earlier this week, China hiked tariffs on $60 billion worth of U.S. goods. The move came after the U.S. raised levies on $200 billion worth of Chinese imports. The U.S. also raised the possibility of slapping tariffs on an additional $300 billion in goods from China.

Trump tweeted on Tuesday that the U.S. is in a “much better position now than any deal we could have made.”

“The escalation of the U.S-China trade war is unequivocally a negative for the growth outlooks for both countries and the global economy,” Veneta Dimitrova, senior U.S. economist at Ned Davis Research, wrote in a note. “Tariffs result in higher inflation, increased policy uncertainly, slower capex and employment growth, and weaker productivity growth.”

“The longer tariffs stay in place or rise in size and scope, the greater the downside risk to the U.S. growth outlook,” Dimitrova said.

The rising trade fears sent equities reeling this month. The Dow and S&P 500 are down 4.6% and 4.2%, respectively, while the Nasdaq has fallen 4.9%.

Earlier this year, the S&P 500 and Nasdaq reached record highs in part because both China and the U.S. indicated progress was being made on the trade front.

But the increasing trade fears have made the market’s short-term outlook “unpredictable,” according to Craig Birk, chief investment officer at Personal Capital.

“You have to accept that it’s going to be a coin-toss if you’re worried about the next day or week. It’s a negotiation,” Birk said. “There will be positioning and there will be developments, some will be positive and some will be negative. We’ll continue to have more choppiness.”


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: fred imbert
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Dow futures fall for a second day after US says new tariffs coming on Friday

U.S. stock index futures were lower on Tuesday after a top U.S. trade official said more tariffs on Chinese goods are coming. ET, Dow Jones Industrial Average futures fell 188 points, indicating a drop of 191 points at the open. Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levies on another $325 billion of Chinese goods “shortly.” In other words, it’


U.S. stock index futures were lower on Tuesday after a top U.S. trade official said more tariffs on Chinese goods are coming. ET, Dow Jones Industrial Average futures fell 188 points, indicating a drop of 191 points at the open. Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levies on another $325 billion of Chinese goods “shortly.” In other words, it’
Dow futures fall for a second day after US says new tariffs coming on Friday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
Keywords: news, cnbc, companies, tariffs, et, deal, yardeni, dow, trade, coming, day, fall, second, points, fell, chinese, goods, futures


Dow futures fall for a second day after US says new tariffs coming on Friday

U.S. stock index futures were lower on Tuesday after a top U.S. trade official said more tariffs on Chinese goods are coming.

At around 7:50 a.m. ET, Dow Jones Industrial Average futures fell 188 points, indicating a drop of 191 points at the open. Futures on the S&P 500 and Nasdaq 100 were also lower.

Shares of trade bellwethers Caterpillar and Boeing fell 0.9% and 1.4%, respectively.

The move down comes after U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.

Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levies on another $325 billion of Chinese goods “shortly.”

Trump’s tweets initially sent the market reeling on Monday. The Dow fell as much as 471 points while the Nasdaq dropped 2% at one point. However, equities rebounded to close well off their lows as traders bet that a resolution would still be reached.

“I remain hopeful that a deal comes and we won’t see new tariffs on Friday,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “But its clear the level of mistrust between the two sides will last for years and some of the tariffs will remain as part of the enforcement tools.”

Chinese Vice Premier Liu He is expected to join a delegation in the United States this week, raising hopes of a trade agreement despite the latest round of duties. However, he will only attend the negotiations on Thursday and Friday. He was originally scheduled to attend negotiations Wednesday through Saturday.

“The Trump administration seems to have concluded that it is time to get it done. In other words, it’s either deal or no deal,” said Ed Yardeni, president and chief investment strategist at Yardeni Research, in a note. But “I expect that the US and China will settle their differences on trade issues sooner rather than later.”

On the data front, there is job openings and labor turnover survey (JOLTs) due at 10 a.m. ET; and consumer credit numbers due at 3 p.m. ET.


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: fred imbert silvia amaro, fred imbert, silvia amaro
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Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat

“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ” “My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said. Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalati


“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ” “My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said. Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalati
Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, gave, trade, tariff, apple, confidence, cramer, china, dow, numbers, stocks, saying, didnt, hit, overplayed, trump, threat


Cramer: These are the two numbers that gave Trump confidence to hit China with new tariff threat

People are saying that American companies that didn’t reduce their China exposure after months and months of watching Washington and Beijing clash on trade have only themselves to blame, CNBC’s Jim Cramer reported Tuesday.

“I’m also told that they are like, ‘Are you kidding me, you had a full year to move out of China. If you didn’t move out of China now, it’s your own fault,'” Cramer said on “Squawk on the Street. ”

“My people I talk to said two numbers determine everything, 3.2% GDP and 3.6% unemployment. That’s when things changed. In other words, the Chinese played a little tougher but they overplayed their hand is what my people say. They overplayed their hand given the numbers of what we have” on the economy in the United States, Cramer said.

“I am saying 12:01 Friday will be different,” added the “Mad Money” host, referring to the midnight deadline later this week that President Donald Trump set for increases in China tariffs from 10% to 25% if trade talks don’t make progress.

U.S. stocks opened sharply lower Tuesday on trade concerns. The Dow Jones Industrial Average on Monday was off as much as 471 points but was able to recoup much of those losses by the close.

Cramer pointed out the continued weakness in Dow stocks that would be most impacted by an escalation in the trade war, including Apple, Caterpillar and Boeing.

“So who’s hurting the Dow?” asked Cramer. “Boeing, but they have a lot of orders. Caterpillar, they didn’t move out fast enough. Apple, who knows what their game is.”

Correction: Apple shares fell Monday. An earlier version misstated their move.


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: berkeley lovelace jr
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Dow drops 470 points on growing trade-war threat, biggest decline since early January

The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09 after plunging as much as 648.77 points at its low of the day, while the S&P 500 dropped 1.65% to 2,884.05. All 30 of Dow components fell and all 11 S&P sectors traded lower in the broad sell-off. Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levy on another $325 billion of Ch


The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09 after plunging as much as 648.77 points at its low of the day, while the S&P 500 dropped 1.65% to 2,884.05. All 30 of Dow components fell and all 11 S&P sectors traded lower in the broad sell-off. Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levy on another $325 billion of Ch
Dow drops 470 points on growing trade-war threat, biggest decline since early January Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: fred imbert yun li, fred imbert, yun li
Keywords: news, cnbc, companies, threat, trade, tariffs, think, dropped, dow, 470, tradewar, biggest, goods, decline, early, chinese, drops, growing, points, sp, fell


Dow drops 470 points on growing trade-war threat, biggest decline since early January

Stocks fell sharply on Tuesday after a top U.S. trade official indicated that higher tariffs on Chinese goods are coming later this week, disappointing traders who hoped President Donald Trump’s weekend tweet threat was just a negotiation tactic.

The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09 after plunging as much as 648.77 points at its low of the day, while the S&P 500 dropped 1.65% to 2,884.05. It was the Dow’s biggest drop since January 3. The Nasdaq Composite dropped 1.96% to 7,963.76. All 30 of Dow components fell and all 11 S&P sectors traded lower in the broad sell-off.

Shares of trade bellwethers Caterpillar and Boeing fell 2.26% and 3.87%, respectively. Boeing also broke below its 200-day moving average for the first time since January. Chipmakers, especially vulnerable if China retaliates, led the tech sector lower as Nvidia dropped 3.75%. Apple also fell 2.7%.

U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.

Lighthizer’s comments “further increased the likelihood of a tariff step up,” Keith Parker, a strategist at UBS, said in a note. A full-blown trade war would shave off 45 basis points from global economic growth, while China’s GDP would take a hit of between 1.2% and 1.5%.

“We still see a trade war as low probability given the next tranche of tariffs would hit US consumer goods, but nevertheless it would have a big negative impact,” he said.

Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levy on another $325 billion of Chinese goods “shortly.”

Trump’s tweets initially sent the market reeling on Monday. The Dow fell as much as 471 points while the Nasdaq dropped 2% at one point. However, equities rebounded to close well off their lows on news that a Chinese delegation would come to Washington for talks and as traders bet that Trump’s tweet was just bluffing.

But Lighthizer’s comments dashed those hopes. The selling on Tuesday accelerated after the Dow broke through Monday’s lows.

The Cboe Volatility Index, a measure of the 30-day implied volatility of the S&P 500 known as the “VIX” or the “fear gauge,” hit a fresh high of 21.09 on Tuesday, its highest level since January 22.

“I think this is a big masquerade by the administration. I think they’re preparing the market for the worst-case scenario but a trade deal is probably going to happen,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “I still think we’ll get some sort of positive announcement on Friday.”


Company: cnbc, Activity: cnbc, Date: 2019-05-07  Authors: fred imbert yun li, fred imbert, yun li
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Dow swings 430 points after Trump’s China threat—Buffett, Cramer and other experts share what they’re watching

Trade war troubles are once again being reflected in the U.S. stock market. The messaging weighed heavily on markets early Monday, with the Dow Jones Industrial Average swinging 430 points by the end of the day. Here’s what four experts are watching now:Warren Buffett, CEO of Berkshire Hathaway, was concerned about what a full-blown trade war could do to global markets:”If we actually have a trade war, it will be bad for the whole world, and could be very bad, depending on the extent of the war.


Trade war troubles are once again being reflected in the U.S. stock market. The messaging weighed heavily on markets early Monday, with the Dow Jones Industrial Average swinging 430 points by the end of the day. Here’s what four experts are watching now:Warren Buffett, CEO of Berkshire Hathaway, was concerned about what a full-blown trade war could do to global markets:”If we actually have a trade war, it will be bad for the whole world, and could be very bad, depending on the extent of the war.
Dow swings 430 points after Trump’s China threat—Buffett, Cramer and other experts share what they’re watching Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: lizzy gurdus
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Dow swings 430 points after Trump's China threat—Buffett, Cramer and other experts share what they're watching

Trade war troubles are once again being reflected in the U.S. stock market.

The major averages reversed course Monday when sources confirmed that a Chinese delegation would visit the U.S. to continue trade talks after President Donald Trump made a series of threats regarding U.S.-China trade talks over the weekend.

In several tweets on Sunday, Trump said tariffs on $200 billion worth of Chinese goods would go up to 25% by the end of this week, countering the seemingly positive headlines made by some of his trade advisors in recent months.

The messaging weighed heavily on markets early Monday, with the Dow Jones Industrial Average swinging 430 points by the end of the day. Experts, including billionaire investor Warren Buffett, wondered how far tensions between the two countries could escalate.

Here’s what four experts are watching now:

Warren Buffett, CEO of Berkshire Hathaway, was concerned about what a full-blown trade war could do to global markets:

“If we actually have a trade war, it will be bad for the whole world, and could be very bad, depending on the extent of the war. But there’s times in negotiations when you talk tough. The one thing you can’t do, though, is you can’t shake your fist first and then shake your finger later on. I mean, that is not a technique that works well. […] You can’t do something between the U.S. and China in a big way without it affecting all the major markets as they go around. And you’re starting a game that you don’t know the ending of, but you know it isn’t a good game.”

Jim Cramer, host of CNBC’s “Mad Money,” tried to parse what Trump’s moves this weekend were aimed at achieving:

“The president’s people — [U.S. Trade Representative Robert] Lighthizer, obviously — don’t want to give in if there isn’t an enforcement mechanism. And maybe the enforcement mechanism is, ‘Look, first of all, we’re going to leave the tariffs no matter what. And second, if you screw around with us, we’re going to take them up.’ See, I think this is like a prelude to saying, ‘There will be no deal unless you accept the fact that our current tariffs are going to stay.’ That’s what Lighthizer wanted to begin with. But … [Treasury Secretary Steven] Mnuchin’s like a cheerleader.”

Art Cashin, director of floor operations at the New York Stock Exchange for UBS, had his eye on what’s next for stocks:

“On Friday, everybody was talking about being within a week of signing a deal. We heard from Mnuchin and [National Economic Council Director Larry] Kudlow and others that we were getting very close, that many things had been removed, and then, suddenly, over the weekend, the president surprised everybody with these tweets. Now, what the market’s going to watch for is will the Chinese delegation continue to be coming to the U.S. further in the negotiation? Will they be bringing the vice premier with them? So those are two touch marks. I think the way the market’s trading right now is they think negotiations are still going on, there’s a chance for a deal, but it certainly looks like it’s been delayed and there are some things that are going to be a little tougher to work out than anybody thought.”

Former U.S. Rep. Jeb Hensarling, now executive vice chairman at UBS, said that while this may have extended the timeline for a deal to be made, it didn’t take one off the table entirely:


Company: cnbc, Activity: cnbc, Date: 2019-05-06  Authors: lizzy gurdus
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Dow makes stunning comeback, recovering nearly all of 471-point plunge on hope trade deal not dead

The Dow Jones Industrial Average ended the day down just 66.47 points at 26,438.48, while the S&P 500 closed 0.4% lower at 2,932.47. The Dow was down as much as 471 points, while the S&P 500 traded down 1.2% at its lows. “I think [Trump] is trying to put pressure on China to make a move,” he said. The tech-heavy Nasdaq, which has soared more than 20% this year, clinched a record close on Friday. The president’s announcement appeared to contradict fresh suggestions from Treasury Secretary Steven


The Dow Jones Industrial Average ended the day down just 66.47 points at 26,438.48, while the S&P 500 closed 0.4% lower at 2,932.47. The Dow was down as much as 471 points, while the S&P 500 traded down 1.2% at its lows. “I think [Trump] is trying to put pressure on China to make a move,” he said. The tech-heavy Nasdaq, which has soared more than 20% this year, clinched a record close on Friday. The president’s announcement appeared to contradict fresh suggestions from Treasury Secretary Steven
Dow makes stunning comeback, recovering nearly all of 471-point plunge on hope trade deal not dead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-05  Authors: fred imbert eustance huang thomas franck silvia am, fred imbert, eustance huang, thomas franck, silvia amaro
Keywords: news, cnbc, companies, trade, china, plunge, nearly, recovering, think, trump, dow, record, nasdaq, mulvaney, stunning, traded, hope, dead, deal, chinese, sp, makes


Dow makes stunning comeback, recovering nearly all of 471-point plunge on hope trade deal not dead

Stocks recovered the bulk of their earlier losses on Monday as investors bet China and the U.S. will still strike a trade deal despite President Donald Trump’s threat to hike tariffs on Chinese imports over the weekend.

The Dow Jones Industrial Average ended the day down just 66.47 points at 26,438.48, while the S&P 500 closed 0.4% lower at 2,932.47. The Nasdaq Composite was down 0.5% at 8,123.29.

The market’s comeback accelerated after CNBC reported that a Chinese delegation will in fact still travel to the U.S. to continue negotiations this week, according to sources, albeit with a smaller group than originally planned.

The Dow was down as much as 471 points, while the S&P 500 traded down 1.2% at its lows. The Nasdaq was briefly down 2.2%. Dow-member Disney traded 0.2% higher after falling as much as 1.5%, offsetting some of the decline. McDonald’s and Chevron traded higher as well.

Stocks initially fell after Trump tweeted on Sunday that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

Though trade negotiations between Washington and Beijing officials are set to resume on Wednesday, the president lamented that the progress is moving “too slowly” as China tries to re-negotiate terms of the deal.

Trump claimed in another tweet Monday that the U.S. is losing between $600 and $800 billion a year on trade, noting: “We’re not going to be doing that anymore.”

“What happened overnight is a bit of posturing on both sides. I think both sides want to continue the progress to reach a trade agreement,” said Michael Arone, chief investment strategist at State Street Global Advisors. “I think it’s a short-term hiccup in a longer-term move up from the market.”

Shares of Apple and Caterpillar came off their worst levels of the session, closing more than 1% lower. Apple fell as much as 3.9% while Caterpillar lost 3.4% at one point.

The apparent about-face in trade sentiment by Trump left some Wall Street insiders worried about the effect on the U.S. equity market, which was fresh off record highs.

“A lot of people were caught long,” said Larry Benedict, founder of The Opportunistic Trader. “I think [Trump] is trying to put pressure on China to make a move,” he said.

The S&P 500 notched a record close last Tuesday. The tech-heavy Nasdaq, which has soared more than 20% this year, clinched a record close on Friday.

The president’s announcement appeared to contradict fresh suggestions from Treasury Secretary Steven Mnuchin and White House chief of staff Mick Mulvaney. Asked Tuesday about Mnuchin’s prior suggestion that the White House could announce an agreement with Beijing in the next two weeks, Mulvaney said, “I think that’s fair.”

The positive outlook from Mnuchin and Mulvaney — as well as upbeat commentary from director of Trump’s National Economic Council, Larry Kudlow — has often met contradiction from trade hardliners like U.S. Trade Representative Robert Lighthizer.


Company: cnbc, Activity: cnbc, Date: 2019-05-05  Authors: fred imbert eustance huang thomas franck silvia am, fred imbert, eustance huang, thomas franck, silvia amaro
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Dow futures drop more than 450 points as China considers skipping trade talks

Dow Jones Industrial Average futures implied an opening decline of about 450 points as of Monday morning stateside. Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.” The Wall Street Journal reported that China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats. “Bob


Dow Jones Industrial Average futures implied an opening decline of about 450 points as of Monday morning stateside. Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.” The Wall Street Journal reported that China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats. “Bob
Dow futures drop more than 450 points as China considers skipping trade talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-05  Authors: eustance huang thomas franck, eustance huang, thomas franck
Keywords: news, cnbc, companies, goods, market, considers, points, wall, trumps, week, skipping, trade, 450, chinese, drop, markets, futures, talks, china, dow


Dow futures drop more than 450 points as China considers skipping trade talks

A sharp sell-off will start the week on Wall Street after President Donald Trump said on Sunday that the U.S. will hike tariffs on goods imported from China, casting doubt on recent optimism that the world’s two largest economies were close to a resolution to their trade battle.

Dow Jones Industrial Average futures implied an opening decline of about 450 points as of Monday morning stateside. S&P 500 and Nasdaq-100 Index futures also pointed to declines for the two indexes at Monday’s open.

China’s stock markets, meanwhile, suffered significant losses by the end of their morning session.

Oil prices also saw sharp declines in the afternoon of Asian trading hours, with U.S. crude futures dropping 2.28% to $60.53 per barrel. For its part, international benchmark Brent crude futures also declined 2.07% to $69.38 per barrel.

Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

Though trade negotiations between Washington and Beijing officials are set to resume on Wednesday, the president lamented that the progress is moving “too slowly” as China tries to re-negotiate terms of the deal.

The Wall Street Journal reported that China is considering cancelling its trade talks with the U.S. this week in light of Trump’s latest threats. Citing a source, the Journal said Beijing had been surprised by the new threats.

Two sources briefed on talks confirmed that news to CNBC. The Chinese may back out of negotiations this week after Trump’s escalated tariff threat, they said, abandoning a six-month truce after Beijing waffled on some previously discussed commitments.

One source said Chinese Vice Premier Liu He will likely cancel the trip he’d planned for himself and a 100-person delegation for a final round of talks that U.S. officials had previously said could yield a deal by Friday. Chinese officials cancelled a trip in late September 2018 in similar circumstances.

A second source said Trump’s decision to more than double the tariff rate on $200 billion of goods was meant to send a message to Liu not to come to the U.S. with more “empty offers.”

The White House, U.S. Treasury and U.S. Trade Representative’s office did not immediately respond to CNBC’s requests for comment.

The apparent about-face in trade sentiment left some Wall Street insiders worried about the effect on the U.S. equity market, fresh off record highs.

“Another turn of the screw tighter Sunday from the President’s hard-ball tactics with the China trade talks, and his pair of tweets look like they could unleash a sharp stock market correction,” said Chris Rupkey, chief financial economist at MUFG Union Bank, in a note. “For weeks now markets have been lulled to sleep on the US trade war with China thinking an agreement was imminent. No more.”

“This has all the makings of a complete disaster that could lead the stock market to crater this week and send those external risks to the US economic outlook soaring,” he added.

Shares of U.S. companies with big sales in China may lead the market’s losses on Monday including Apple, Wynn Resorts and various chipmakers on fears China may retaliate.

Global trade bellwethers Caterpillar and Boeing could also come under pressure.

The S&P 500, up 17.5% in 2019 alone, notched a record close on Tuesday. The tech-heavy Nasdaq Composite, which has soared more than 20% this year, clinched a record close on Friday.

As the talks near an anticipated end and delve into thorny issues including intellectual property rights, Trump may be hoping to use the strength of the U.S. economy and markets to his advantage.

U.S. markets saw sizable gains on Friday after the Labor Department said the American economy added a robust 263,000 jobs in April, with the Nasdaq posting its best day in seven weeks, hitting a fresh record close in the process. The Russell 2000 outperformed and posted its best day since January while the S&P 500 saw its best day in a month.

Despite the fresh enthusiasm, hoping to leverage the relative health of the American stock market and broader economy in the hopes of extracting a better deal in the future could leave some wondering how much longer Wall Street will have to wait for a permanent solution.

Trade officials “kept saying that a deal was imminent, so the market could be disappointed in the near term,” said Bruce McCain, chief investment strategist at Key Private Bank. “I think that some deal was priced in to a degree … the market’s baked in a lot of positives.”

McCain said that while an economic recession still looks unlikely anytime soon, he agreed with Rupkey’s expectations for a sell-off and said he wouldn’t be surprised to see a drop in the range of 5% to 10% if trade negotiations stall.

The president’s announcement also appeared to contradict fresh suggestions from Treasury Secretary Steven Mnuchin and White House chief of staff Mick Mulvaney. Asked Tuesday about Mnuchin’s prior suggestion that the White House could announce an agreement with Beijing in the next two weeks, Mulvaney said, “I think that’s fair.”

The positive outlook from Mnuchin and Mulvaney — as well as upbeat commentary from director of Trump’s National Economic Council, Larry Kudlow — has often met contradiction from trade hardliners like U.S. Trade Representative Robert Lighthizer.

Lighthizer, known for his hawkish economic views toward China, has encouraged Trump not to remove the taxes on Beijing’s goods until it shows it is complying with the terms of the agreement.

“Bob Lighthizer has Trump’s ear, not so much Mnuchin and Kudlow in the final days of the trade talks,” said Larry McDonald, editor of The Bear Traps Report. “The hardball playbook strikes again.”

— CNBC’s Kayla Tausche contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-05-05  Authors: eustance huang thomas franck, eustance huang, thomas franck
Keywords: news, cnbc, companies, goods, market, considers, points, wall, trumps, week, skipping, trade, 450, chinese, drop, markets, futures, talks, china, dow


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DowDuPont profit slumps 28%, hit by lower chemical demand

DuPont products are shown for sale in a hardware store in National City, California, December 9, 2015. DowDuPont reported a 28% fall in adjusted quarterly profit on Thursday, as floods in the U.S. Midwest and a sluggish growth in auto and smartphone markets hit prices of its specialty and agricultural chemicals, as well as volumes in North America. The company, formed by the $130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is in the process of splitting into three separate


DuPont products are shown for sale in a hardware store in National City, California, December 9, 2015. DowDuPont reported a 28% fall in adjusted quarterly profit on Thursday, as floods in the U.S. Midwest and a sluggish growth in auto and smartphone markets hit prices of its specialty and agricultural chemicals, as well as volumes in North America. The company, formed by the $130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is in the process of splitting into three separate
DowDuPont profit slumps 28%, hit by lower chemical demand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: kate rooney
Keywords: news, cnbc, companies, demand, profit, floods, spun, dupont, billion, lower, products, 28, slumps, agricultural, dow, hit, chemicals, sales, chemical, dowdupont


DowDuPont profit slumps 28%, hit by lower chemical demand

DuPont products are shown for sale in a hardware store in National City, California, December 9, 2015.

DowDuPont reported a 28% fall in adjusted quarterly profit on Thursday, as floods in the U.S. Midwest and a sluggish growth in auto and smartphone markets hit prices of its specialty and agricultural chemicals, as well as volumes in North America.

The company, formed by the $130 billion merger of chemical giants Dow Chemical and DuPont in 2017, is in the process of splitting into three separate business units — Dow, DuPont, and Corteva Agriscience.

Dow Inc, the unit that makes chemicals used in brake fluids and packaging materials, was spun off on April 1 and posted a 24% drop in core earnings from operations, hurt by lower chemical prices.

DowDuPont’s agricultural seeds and chemicals business, Corteva, is set to be spun off on June 1.

As a combined company, DowDuPont’s adjusted net income fell to $1.89 billion in the first quarter ended March 31, from $2.63 billion a year earlier.

On a per share basis, it earned 84 cents, in line with analysts’ estimates, according to IBES data from Refinitiv.

Net sales at DowDuPont dropped 9% to $19.65 billion, while sales at Dow fell 10% to $10.77 billion.

DowDuPont had said in March the floods have limited its ability to deliver products to customers, while delaying pre-season applications.

Record floods devastated a wide swath of the farm belt across Iowa, Nebraska, South Dakota and several other states, idling ethanol plants, slowing rail shipments of agricultural products and swamping storage bins holding grain from previous harvests.

Dow said it expects to take a hit in the second quarter, mainly from seasonal planned turnaround and maintenance activity. However, it anticipates pricing to start rising sequentially.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: kate rooney
Keywords: news, cnbc, companies, demand, profit, floods, spun, dupont, billion, lower, products, 28, slumps, agricultural, dow, hit, chemicals, sales, chemical, dowdupont


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Cramer: ‘We’ve had a terrific run’ — it’s time to trim some positions

The major U.S. indexes all declined during the session as investors revealed worries that the stock market has been too strong for its own good, CNBC’s Jim Cramer said Wednesday. The Dow Jones Industrial Average shed about 163 points, while the S&P 500 and the tech-heavy Nasdaq Composite fell 0.75% and 0.57%, respectively. “We’ve had a terrific run, so I am blessing you to do some selling tomorrow,” the “Mad Money” host said. The current year doesn’t quite look like ’87 or ’99, but discipline is


The major U.S. indexes all declined during the session as investors revealed worries that the stock market has been too strong for its own good, CNBC’s Jim Cramer said Wednesday. The Dow Jones Industrial Average shed about 163 points, while the S&P 500 and the tech-heavy Nasdaq Composite fell 0.75% and 0.57%, respectively. “We’ve had a terrific run, so I am blessing you to do some selling tomorrow,” the “Mad Money” host said. The current year doesn’t quite look like ’87 or ’99, but discipline is
Cramer: ‘We’ve had a terrific run’ — it’s time to trim some positions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: tyler clifford
Keywords: news, cnbc, companies, cramer, 1987, veteran, stock, stocks, dow, dotcom, weve, run, terrific, trim, positions, nasdaq, money, market


Cramer: 'We've had a terrific run' — it's time to trim some positions

The major U.S. indexes all declined during the session as investors revealed worries that the stock market has been too strong for its own good, CNBC’s Jim Cramer said Wednesday.

The Dow Jones Industrial Average shed about 163 points, while the S&P 500 and the tech-heavy Nasdaq Composite fell 0.75% and 0.57%, respectively.

“We’ve had a terrific run, so I am blessing you to do some selling tomorrow,” the “Mad Money” host said. “But other than that, I think we’re in fine shape — somewhat overheated, most definitely — but I still think it makes sense to stay the course.”

The Dow had its best four-month rally to start the year since 1987. The Nasdaq had its best showing in the same period since its big rally in 1999. No one wants 2019 to look like those two years, Cramer said.

“Nothing scares the daylights out of professional traders more than those two years,” he said. “If you’re a grizzled veteran like I am, you know those two years had a horrific pattern: They gave you rapid-fire rallies, which ultimately led to a pair of ignominious crashes.”

Cramer said he is always on the lookout for history to repeat itself. He said he had cash on hand when the stock market crashed in 1987, and he shorted tech stocks during the dotcom bubble burst in 2000, which followed the 1999 rally.

The current year doesn’t quite look like ’87 or ’99, but discipline is key, said Cramer, who trimmed positions in his ActionAlertsPlus.com charitable trust. Still, the Dow is up 13% this year, the S&P 500 is up 17% and the Nasdaq is up 21%, he noted.

“Any time you have a remarkable run, it never hurts to take something off the table. Nobody ever got hurt ringing the register,” Cramer said. “Bulls make money, bears make money, but hogs — they get slaughtered. In other words, please don’t be greedy.”

But it’s not time to sell everything like the veteran stock trader did in 1987, or to short stocks as he did in 2000. The strategy behind short selling is to borrow stocks that have potential to decline in hopes of making a profit when the share price falls.

Yet, the “tsunami of IPOs” coming to market is reminiscent of the dotcom era, Carmer said. There are seven deals this week, and many in the technology space. Uber is on its way to public markets next week.

“When you get too many IPOs in one sector, it’s incredibly toxic to the rest of the group because all of this new supply tends to overwhelm the demand,” he said. “Like any other market, when supply exceeds demand, prices … they go down. So the current deluge of deals is unnerving to anyone who traded during the dotcom bubble.”


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: tyler clifford
Keywords: news, cnbc, companies, cramer, 1987, veteran, stock, stocks, dow, dotcom, weve, run, terrific, trim, positions, nasdaq, money, market


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