Categories: world

Stocks Tumble Again on Report US Plans More Tariffs

October 29, 2018 World 1 Views NEW YORK – Fear that the Trump administration will announce tariffs on all remaining…

NEW YORK – Fear that the Trump administration will announce tariffs on all remaining imports from China helped knock U.S. Stocks from a strong early gain to another sharp loss Monday.

Technology companies sank again after Bloomberg News reported that the U.S. is planning new tariffs if the two sides do not make progress in trade talks next month.

Technology and internet companies, industry and retailers took steep losses as Wall Street’s recent bout or volatility continued. The S & P 500 index has dropped 9.4 percent in October and is on track for its worst monthly loss since February 2009. Bloomberg News reported that the Trump was the lowest point during the 2008-09 financial crisis.

Administration will put tariffs on the rest of the country’s imports from China if Presidents Donald Trump and Xi Jinping do not make significant progress in easing the trade dispute next month.

The S & P 500 index fell 17.44 points, or 0.7 percent, to 2,641.25.

The Dow Jones Industrial Average gained as much as 352 points Monday morning but closed down 245.39 points, or 1 percent, to 24,442.92. It fell as much as 566 during the day.

The Nasdaq composite, which is heavily weighted with technology stocks, lost 116.92 points, or 1.6 percent, to 7,050.29. The Russell 2000 index of smaller-company stocks gave up 6.51 points, or 0.4 percent, to 1.447.31.

Stocks have plunged since early October, breaking a long period of relative calm over the summer, and trading has been particularly volatile the last few days.

Among industrials, Boeing lowered 6.6 percent to $ 335.59. Sommige vroege winsten voor tech en internet stocks ook faded. Microsoft shed 2.9 percent to $ 103.85. Alphabet, Google’s parent company, lost 4.5 percent to $ 1,034.73.

Amazon.com dropped another 6.3 percent to $ 1,538.88. The online retailer tumbled Friday after it reported weak sales and gave a lower-than-expected revenue estimate for the quarter that includes the holiday shopping season. Its stock traded above $ 2,000 a share in early September and has fallen 24.5 percent since then.

The S & P 500, the main benchmark for the U.S. stock market, has fallen 9.9 percent from its latest record high on Sept. 20. The Nasdaq has plunged 13 percent from its record high reached Aug. 29.

For most of this year investors have remained hopeful that the U.S. og Kina ville arbejde ut deres disagreements om handelspolitikken og at mange af de takster ville blive reduceret eller elimineret. Men i de seneste ukene har de mistet noget af deres tillit, og det er bidratt til markedets tumble

. De effekter af højere takster kunne være særligt alvorlige for teknologibedrifter, som fremstiller mange af deres produkter i Kina, og for industrielle virksomheder, som allerede betaler højere priser for metaller. The U.S. and China are the world’s largest economies and their trade relationship is the world’s largest, so the higher taxes on imports could also slow global economic growth and increase inflation.

While most technology companies fell, open source software company Red Hat jumped after IBM agreed to buy it for $ 34 billion in stock. IBM Chairman and CEO Ginni Rometty said the deal will make IBM the world’s largest hybrid cloud provider, meaning it will offer companies a mix of on-site private and third-party public cloud services.

Red Hat soared 45.4 percent to $ 169.63 , reversing its losses from earlier this year. IBM fell 4.1 percent to $ 119.64.

The prospect of reduced barriers to trade helped auto makers on Monday. Car companies rose after Bloomberg News reported that regulators in China intend to propose cutting the tax on imported cars to 5 percent from 10 percent. The trade fight between the U.S. and China has hurt sales, and that slowdown is one of several factors that have damaged car company stocks this year.

Ford climbed 3.3 percent to $ 9.28 and auto parts retailer BorgWarner advanced 4 percent to $ 39.56. After Cooper Tire & Rubber reported a better third-quarter profit than analysts expected, its stock surged 21.4 percent to $ 30.89.

Germany’s DAX rose 1.2 percent as Volkswagen, Daimler and BMW made big gains. Italy’s FTSE MIB index rose 1.9 percent after Standard & Poor’s did not downgrade the company’s credit rating.

Mexico’s stock index shed 4.2 percent after President -elect Andres Manuel Lopez Obrador said he will respect the result of a referendum that rejected a partly-built new airport for Mexico City. He said 70 percent of voters opposed the $ 13 billion project.

Brazil’s Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later turned down and lost 2.2 percent. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties.

Bond prices dipped. The yield on the 10-year Treasury note rose to 3.08 percent from 3.07 percent.

The price of U.S. crude oil dropped 0.8 percent to $ 67.04 per barrel in New York while Brent crude, used to price international oils, lost 0.4 percent to $ 77.34 per barrel in London.

Wholesale gasoline added 0.5 percent to $ 1.82 a gallon and heating oil wear 0.8 percent two $ 2.28 a gallon. Natural gas was unchanged at $ 3.19 per 1,000 cubic feet.

Gold lost 0.7 percent to $ 1,227.60 an ounce. Silver fell 1.8 percent to $ 14.44 an ounce. Copper was little changed at $ 2.74 a pound.

The dollar rose to 112.35 yen from 111.85 yen. The euro fell to $ 1.1390 ​​from $ 1.1412.

Tokyo’s Nikkei 225 dropped 0.2 percent and Seoul’s Kospi lost 1.5 percent. Hong Kong’s Hang Seng advanced 0.4 percent.

____


Source link

Share
Published by
Faela