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U.S. Stocks Decline Amid Trade Woes

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U.S. shares fell as a wave of promoting pulled decrease all the pieces from financial institution shares to shares of expertise corporations.

The Dow Jones Industrial Common misplaced 262 factors, or 1%, to 26025. The S&P 500 declined 0.8%, and the Nasdaq Composite fell 0.6%.

Worries concerning the path of U.S.-China commerce negotiations and the worldwide economic system have saved shares and bond yields beneath strain for a lot of the month. Goldman Sachs analysts mentioned Monday that the outlook for commerce talks had “collapsed,” including that they consider Washington and Beijing gained’t attain an settlement earlier than the 2020 elections.

Few analysts consider the U.S. is headed towards an imminent downturn.

“Given the low unemployment and powerful shopper confidence within the U.S., it’s unlikely we get a recession any time quickly,” mentioned Patrick Spencer, managing director at U.S. funding agency Baird.

Nonetheless, others fear that the gloomy outlook mirrored in bond markets—the place yields throughout the globe have dropped in latest months—might quickly be mirrored in shares too.

“If [yields] maintain edging down, the fairness market is clearly flawed as a result of the bond market will probably be telling you we have now one mom of a recession coming,” mentioned Neil Dwane, world strategist at Allianz International Traders.

Merchants work on the ground on the New York Inventory Alternate on Aug. 9.


Picture:

don emmert/Agence France-Presse/Getty Photos

Financial institution shares took a contemporary hit Monday as U.S. Treasury yields retreated once more, with

Citigroup
,

Financial institution of America

and

Morgan Stanley

every dropping greater than 2%. Declining bond yields are likely to weigh on banks by chopping into their lending earnings.

Semiconductor makers additionally misplaced floor, with

Nvidia

down 1.4% and

Superior Micro Gadgets

dropping 2.5%.

Elsewhere, the Stoxx Europe 600 edged down 0.3%, weighed down by declines amongst lenders and journey and leisure shares.

Among the many largest gainers within the area was

Tullow Oil
,

TUWOY 18.13%

whose shares rose 20% after the corporate mentioned it had discovered extra oil off the coast of Guyana.

Hong Kong’s Dangle Seng Index fell 0.4% after protests on the metropolis’s airport prompted authorities to cancel greater than 100 flights. Chinese language authorities mentioned the violent weekend demonstrations marked the emergence of “the primary indicators of terrorism” within the semiautonomous metropolis—and vowed a cruel crackdown.

“Hong Kong is clearly an necessary bellwether for simply how far China is prepared to exert its affect,” mentioned Matthew Cairns, a senior charges strategist at Rabobank.

“It is a clear present of Chinese language power and I don’t suppose, simply as we’re seeing within the commerce warfare, that China will probably be prepared to permit overt breaches of its authority throughout the area and that clearly is having fairly damaging impact by way of the Dangle Seng,” he added.

The Shanghai Composite closed greater, although, notching a 1.5% achieve after China’s central financial institution continued to weaken the yuan, although at a slower tempo than merchants had anticipated. That helped ease considerations of a pointy devaluation after President Trump final week accused China of manipulating its foreign money.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com and Akane Otani at akane.otani@wsj.com

Copyright ©2019 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Business/Markets

U.S. Stocks, Bond Yields Fall on Trade Tensions

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U.S. shares slumped Friday after China mentioned it will impose retaliatory tariffs on further U.S. merchandise and President Trump vowed to reply.

The Dow Jones Industrial Common dropped greater than 530 factors, or 2.1%, placing a halt to a comparatively quiet week for markets. Yields on U.S. authorities bonds additionally tumbled, as did commodities markets, akin to oil and copper, which might be delicate to the 2 nations’ commerce battle.

The…

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Business/Markets

August Data Prove Ominous for Lagging Industrial Stocks

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One of many hardest-hit areas of the inventory market in latest months is underneath recent strain after a sequence of stories confirmed the manufacturing sector in decline.

Industrial shares, starting from heavy-machinery producers like Caterpillar Inc. to engine maker Cummins Inc., have lagged behind the S&P 500 as traders have grown more and more nervous concerning the sector’s well being.

Financial…

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Business/Markets

A Rocketing Stock That Won’t Fall Back to Earth

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It has been 50 years since people first landed on the Moon, however the maker of the engines that took them there might have additional to go.

U.S. rocket maker Aerojet Rocketdyne has already reached the celebrities by way of investor efficiency. In July 2012, Aerojet, a producer that dates again to World Battle II, introduced it will purchase Rocketdyne, the maker of the 5 F-1 engines that powered the Saturn V rocket that took individuals to the moon in 1969. Since then, its inventory has returned nearly 690%. That compares with 280% for the U.S….

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