Stocks Fall as Tariff Jitters Build -- WSJ
August 02 2018 - 3:02AM
Dow Jones News
By Danielle Chemtob and Ben St. Clair
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 2, 2018).
The S&P 500 and Dow Jones Industrial Average edged lower
Wednesday as losses in energy and industrial shares offset a
rebound in technology stocks.
Shares of industrial companies lost ground after reports said
administration advisers were urging President Trump to sharply
increase tariffs against China , renewing fears among investors
that global trade frictions could hit the markets.
Heavy-equipment maker Caterpillar lost $5.26, or 3.7%, to
$138.54, while Boeing fell 3.54, or 1%, to 352.76.
"The longer this goes on, the more the market is going to have
to start pricing in the reality that earnings could be hit," said
Tim Courtney, chief investment officer of Exencial Wealth
Advisors.
The Dow industrials lost 81.37 points, or 0.3%, to 25333.82,
erasing gains after rising as much as 75 points earlier in the
session. The S&P 500 fell 2.93 points, or 0.1%, to 2813.36,
notching its fourth loss in five trading days, and the Nasdaq
Composite added 35.50 points, or 0.5%, to 7707.29.
Despite renewed trade worries, strong U.S. economic data and
corporate earnings have helped many U.S. investors remain
cautiously optimistic.
The S&P 500 technology sector gained 1% Wednesday on the
heels of a strong earnings report from Apple. The iPhone maker's
shares rose 11.21, or 5.9%, to a fresh high of 201.50 after the
company reported resilient demand for high-price iPhones and record
revenue from its services business.
"Investors overall are at a place where they know tech long-term
continues to be a great place to be," said Rich Guerrini, president
and chief executive of PNC Investments. "I think they are certainly
taking some of these dips as opportunities, which is why we're not
seeing movement in any one given direction."
Still, other tech companies have posted disappointing earnings,
and concerns over future user growth have weighed down the sector,
sending Facebook and Twitter shares tumbling recently.
While many investors are still attracted to the growth potential
of technology companies, others are beginning to rotate into other
areas of the stock market, said Bryan Keller, managing partner at
Dakota Wealth Management.
Meanwhile, declines in the energy sector also weighed on stocks,
with shares of energy firms in the S&P 500 falling 1.3% after
data showed an unexpected rise in U.S. crude stockpiles.
Elsewhere, the Stoxx Europe 600 edged down 0.5%. The Shanghai
Composite dropped 1.8% while Hong Kong's Hang Seng fell 0.8%.
(END) Dow Jones Newswires
August 02, 2018 02:47 ET (06:47 GMT)
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