Wall Street falls as Trump greenlights China tariffs

(Reuters) – U.S. stocks fell back on Friday after President Trump instructed aides to proceed with tariffs on about $200 billion in Chinese products, despite Treasury Secretary Steven Mnuchin’s attempts to restart talks with Beijing.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., September 7, 2018. REUTERS/Brendan McDermid

A source familiar with the situation confirmed stories initially carried by both Bloomberg and Fox News on the moves by the White House. [nL2N1W0158]

Wall Street, which had been trading marginally in positive territory on the back of a rise in U.S. Treasury yields above 3 percent, reversed.

“If Trump is willing to go ahead with the tariffs then that is significant enough to sour markets,” said Bryan Reilly managing director at CIBC Private Wealth Management in Boston, Massachusetts.

“Should this trade uncertainty prevail, then sentiment only has one way to go from here and that is down.”

At 12:39 a.m. ET the Dow Jones Industrial Average fell 0.17 percent to 26,102.37, the S&P 500 0.15 percent to 2,899.71 and the Nasdaq Composite 0.26 percent to 7,992.72.

Financial stocks held on to their gains and were last up 0.52 percent. Only three of the 11 major S&P sectors were higher.

The real estate index fell 1.11 percent, while utilities 0.69 percent and telecoms declined 0.77 percent.

Also weighing on utilities was NiSource, which tumbled 9.9 percent after fire investigators said they suspected the company’s unit, Columbia Gas, was linked to a series of gas explosions in Boston suburbs on Thursday.

The energy sector was up 0.69 percent, making it the best performing group on the day.

Walmart dropped 0.5 percent after Goldman Sachs raised questions around the purchase of a majority stake in India’s Flipkart.

L Brands Inc jumped 4.8 percent after the owner

Read More Here...

Bookmark the permalink.