By Crystal Kim Sept. 14, 2018 2:04 p.m. ET
Talk Is NOT Cheap. Stocks reversed directions and sank on reports that President Donald Trump directed aides to proceed with imposing 25% tariffs on $200 billion in Chinese products. So much for restarting trade discussions. In today’s Intraday Update, we…
•…note that the market was otherwise poised to have a good day;
•…observe that financial stocks are leading the way;
•…highlight Advanced Micro Devices(AMD), which is getting a big boost from a price-target change.
Close but No Cigar
Stocks were grinding higher at the market’s open Friday morning extending the week’s gain—that is until news broke that President Donald Trump instructed aides to proceed with imposing 25% tariffs on about $200 billion more in Chinese goods. The Dow Jones Industrial Averageis down 45 points, or 0.2%, to 26,099.76, the S&P 500 has dipped 0.2% to 2899.39, and the Nasdaq Compositehas declined 0.2% to 7996.66.
Technology stocks are still the year’s superstars. The sector has been the No. 1 driver of gains so far, up more than 17% so far this year. Given its 26% weighting in the S&P 500, the group would account for about 51% of the index’s near-9% return, as DataTrek Research co-founder Nicholas Colas noted in his Friday morning missive. But on Friday financial stocks showed up after being missing-in-action for some time. The sector has risen 0.5% so far today, finally responding to the 10-year Treasury yield almost kissing 3% again. If the tariff news hadn’t hit, financials could’ve helped the S&P 500 touch new highs, again. That seems less likely to occur now.