US close: Markets lower on fears around trade, growth
Wall Street closed with heavy losses on Tuesday, after a session in which traders looked into the fine print of Monday's trade war ceasefire with China and digested a flattening yield curve in government debt.
Dow Jones I.A.
38,460.92
04:30 15/10/20
Nasdaq 100
17,526.80
12:15 24/04/24
The Dow Jones Industrial Average ended the day down 3.1% at 25,027.27, the S&P 500 was off 3.24% at 2,700.06, and the Nasdaq 100 was 3.78% softer at 6,795.21.
Following Monday's rally, market participants grew increasingly sceptical about the truce between China and the US with confusion about when it would kick-off also undermining sentiment.
Trump's economic advisor, Larry Kudlow told reporters on Monday that it would start on 1 January, but the White House later issued a statement saying that the 90-day truce began on 1 December.
There was also confusion over the details of the truce, with several senior White House figures contradicting one another.
“The weekend dinner date between Trump and Xi initially drew a positive response, with markets rallying at the prospect of the trade war being paused for a few months and possibly even stopped altogether as talks progress well,” said Oanda analyst Craig Erlam.
"This has since drawn plenty of scepticism about just how significant an agreement it was and what can possibly be achieved in the next few months that will prevent further tariffs being imposed."
Also weighing on sentiment was the flattening of the US interest rate curve, as the yield on five-year government debt fell below that on three-year debt - something that has foreshadowed previous recessions - as investors turned less confident around the outlook for economic growth.
In corporate news, watchmaker Movado jumped 12.55% after its third-quarter revenue beat expectations but profit fell short.
Industrial distributor HD Supply reversed earlier gains to finish down 0.61%, even after its third-quarter earnings and revenue topped analysts' forecasts and the company upped its full-year guidance.
Elsewhere, AutoZone shares surged 6.48% after its first-quarter same-store sales rose 2.7%, beating expectations for a 2% increase.
Dollar General was down 6.8% after its third-quarter results, as it cut its 2018 earnings per share outlook to $5.85-$6.05 from $5.95-$6.15.
Apple was down 4.4% after leading Monday's rally.
Dow Jones - Risers
Procter & Gamble Co. (PG) $93.31 -0.01%
Verizon Communications Inc. (VZ) $58.09 -0.12%
Johnson & Johnson (JNJ) $146.09 -0.12%
McDonald's Corp. (MCD) $185.04 -0.18%
Coca-Cola Co. (KO) $49.58 -0.22%
Merck & Co. Inc. (MRK) $78.21 -1.27%
Pfizer Inc. (PFE) $45.17 -1.85%
Exxon Mobil Corp. (XOM) $79.43 -2.20%
United Technologies Corp. (UTX) $120.87 -2.21%
Walt Disney Co. (DIS) $112.87 -2.48%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $129.32 -6.93%
Boeing Co. (BA) $342.50 -4.85%
Intel Corp. (INTC) $47.75 -4.75%
Dowdupont Inc. (DWDP) $56.49 -4.51%
JP Morgan Chase & Co. (JPM) $107.23 -4.46%
Apple Inc. (AAPL) $176.69 -4.40%
Visa Inc. (V) $138.64 -4.39%
American Express Co. (AXP) $107.66 -4.20%
Goldman Sachs Group Inc. (GS) $184.50 -3.82%
Home Depot Inc. (HD) $175.62 -3.54%
S&P 500 - Risers
AutoZone Inc. (AZO) $880.86 6.75%
Newmont Mining Corp. (NEM) $33.79 1.72%
Entergy Corp. (ETR) $88.98 1.33%
Edison International (EIX) $57.80 1.28%
Crown Castle International (CCI) $115.10 1.13%
Exelon Corp. (EXC) $46.95 1.01%
Consolidated Edison Inc. (ED) $81.99 0.94%
Cabot Oil & Gas Corp. (COG) $25.11 0.80%
NiSource Inc. (NI) $27.09 0.56%
Duke Energy Corp. (DUK) $90.05 0.48%
S&P 500 - Fallers
United Rentals Inc. (URI) $106.29 -10.88%
Pitney Bowes Inc. (PBI) $7.64 -9.91%
Frontier Communications Co. (FTR) $3.42 -9.52%
E*TRADE Financial Corp. (ETFC) $48.65 -8.05%
Wynn Resorts Ltd. (WYNN) $110.36 -7.87%
Micron Technology Inc. (MU) $36.88 -7.87%
Tenet Healthcare Corp. (THC) $24.81 -7.84%
Nvidia Corp. (NVDA) $157.11 -7.60%
Applied Materials Inc. (AMAT) $35.43 -7.59%
Borg Warner Inc. (BWA) $37.65 -7.49%
Nasdaq 100 - Risers
Tesla Inc (TSLA) $359.70 0.34%
O'Reilly Automotive Inc. (ORLY) $346.43 0.03%
Activision Blizzard Inc. (ATVI) $46.52 -0.17%
Dollar Tree Inc (DLTR) $86.25 -0.48%
Henry Schein Inc. (HSIC) $89.92 -0.53%
Twenty-First Century Fox Inc Class B (FOX) $48.92 -0.95%
Twenty-First Century Fox Inc Class A (FOXA) $49.12 -1.09%
Mondelez International Inc. (MDLZ) $44.47 -1.24%
Starbucks Corp. (SBUX) $66.65 -1.26%
Citrix Systems Inc. (CTXS) $108.87 -1.29%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $110.36 -7.87%
Micron Technology Inc. (MU) $36.88 -7.87%
Nvidia Corp. (NVDA) $157.11 -7.60%
Applied Materials Inc. (AMAT) $35.43 -7.59%
American Airlines Group (AAL) $36.69 -7.47%
Western Digital Corp. (WDC) $43.04 -7.18%
Seagate Technology Plc (STX) $41.57 -7.13%
Lam Research Corp. (LRCX) $149.69 -7.04%
Align Technology Inc. (ALGN) $220.95 -6.26%
Amazon.Com Inc. (AMZN) $1,668.40 -5.87%