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US-STOCKS-MARKETS
US stocks dip as Trump talks of more tariffs on China
NEW YORK, July 21, 2018 (BSS/AFP) – Wall Street stocks finished slightly
lower Friday as President Donald Trump’s latest tariff threats and attack on
the Federal Reserve kept a lid on gains despite largely solid earnings.
The Dow Jones Industrial Average finished down less than 0.1 percent at
25,058.06.
The broad-based S&P 500 dropped 0.1 percent to close the week at 2,801.83,
while the tech-rich Nasdaq Composite Index also fell 0.1 percent to 7,820.20.
With the majority of larger earnings reports still to come, companies are
on track to report second-quarter earnings about 20 percent above those of
the year-ago period, according to a note from Credit Suisse.
“Overall, the earnings season has been strong, topline revenue growth has
been solid as well,” said Quincy Krosby, chief market strategist at
Prudential Financial.
But Trump kept some of the focus on trade fights after telling CNBC in an
interview that he was willing to significantly expand the conflict with China
by adding tariffs to all US imports.
On Twitter, Trump also accused China and the European Union of manipulating
their currencies to promote their exports at the expense of the US, and
criticized the Fed for raising interest rates.
Among companies reporting results, Microsoft won 1.8 percent after
reporting a 10 percent rise in quarterly profit to $8.8 billion behind strong
revenue gains in internet search ads, gaming, Windows and other key
businesses.
Honeywell International advanced 3.8 percent as the industrial company
raised its forecast for annual profits and sales amid strong demand from
aerospace and defense clients.
But General Electric sank 4.5 percent after it reported a 29.7 percent drop
in second-quarter earnings to $615 million on continued power industry
weakness.
BSS/AFP/HR/0930