Stocks fall amid US trade escalations with EU, China
Stocks fell Thursday after weaker-than-expected earnings and as trade tensions escalated on multiple fronts. Treasury yields and the dollar slipped after President Donald Trump criticized Fed policy.
Here is the scoreboard:
Dow Jones industrial average: 25,057.75 −141.54 (-0.56%)
S&P 500: 2,805.02 -10.60 (-0.38%)
- Trump said he’s “not thrilled” with the Federal Reserve raising interest rates. The comments break with a longstanding precedent of the White House not commenting on central bank policy in respect of its independence.
- Auto industry reps spoke out against a 25% tariff on car imports to the US at a Commerce Department hearing. The Commerce Department is conducting an investigation into whether car imports pose national security risks. The European Union’s trade commissioner announced a list of countermeasures are underway.
- China’s foreign ministry spokesperson Hua Chunying said Washington blaming Beijing on progression of trade talks is “bogus.” White House Economic Advisor Larry Kudlow suggested Wednesday that Chinese President Xi Jinping was stalling a potential deal between Washington and Beijing.
- The US federal deficit is now expected to top $1 trillion by next year. New deficit figures submitted by the White House last week are $926 billion higher for the next 10 years than previous estimates.
- Comcast dropped out of a $71 billion bidding war for 21st Century Fox. The move paves the way for Disney to acquire key parts of Rupert Murdoch’s media empire, excluding Fox News Channel and Fox Business.
- Earnings season rolls on. Blackstone topped analyst estimates, with second-quarter earnings jumping 55% from a year ago. eBay also beat earnings expectations, but lowered its full-year guidance as Amazon‘s e-commerce market share continues to expand.
And a look at the upcoming economic calendar:
- G20 finance ministers meet in Buenos Aires.
- General Electric reports earnings.
- Retail sales and CPI are out in Canada.
- The eurozone reports current account numbers.
Read the full article from it’s original source: http://uk.businessinsider.com/stocks-fall-amid-us-trade-escalations-with-eu-china-2018-7