BCN-19 US stocks end lower on Trump’s new China tariffs, Dow -1.1%





US stocks end lower on Trump’s new China tariffs, Dow -1.1%

NEW YORK, Aug 2, 2019 (BSS/AFP) – Wall Street stocks finished decisively
lower on Thursday, with many retailers tumbling, after President Donald Trump
announced a new round of tariffs on Chinese goods.

Trump’s early-afternoon tweet announcing the tariffs on another $300
billion in goods sent investors to the exits and left the Dow Jones
Industrial Average 1.1 percent lower at the closing bell at 26,583.42.

The broad-based S&P 500 slid 0.9 percent to 2,953.56, while the tech-rich
Nasdaq Composite Index dropped 0.8 percent to 8,111.12.

Trump’s announcement of the 10 percent tariff to take effect on September
1 jolted stocks from a rally following the Federal Reserve’s move Wednesday
to cut interest rates for the first time in more than a decade.

At the White House, Trump told reporters was “not concerned” by the
negative reaction among investors, saying he had anticipated it.

The news prompted a broad-based selloff but fell especially hard on
retailers such as Best Buy, which lost 10.8 percent, Target, which tumbled
4.4 percent and Macy’s, which sank 6.8 percent.

Amazon and Walmart, which are seen as having more clout with suppliers,
also declined, but by less than one percent.

“What we are seeing here is a real decline in retail, so we know the
decline is definitely related to the China tweet because the next round of
tariffs is going to impact the consumer goods more than the previous ones,”
said Maris Ogg of Tower Bridge Advisors.

Other companies with large China presences also fell, including
Caterpillar, down 3.7 percent and Boeing, down 2.1 percent.

Deere & Company fell 2.7 percent. The company, which sells farm equipment,
has pointed to the loss of agricultural exports to China as a drag on US
agricultural investment.