US stocks down as China unveils new tariffs US goods
InvestingOnline.com
8/08/2018, 14:22US stocks market opened Wednesday with losses as investors are digesting China announcement on new tariffs on $16 billion of US goods. All major indexes are trading down but on a recovery track.
After saying China will retaliate against the latest round of US tariffs on Chinese imports, Ministry of Commerce announces a 25% charge on $16 billion worth of U.S. goods, including auto and crude oil, coal, asphalt and plastic products, among others.
The Dow Jones Industrial Average is trading 0.15% negative or 38.96 points down on the day at 25,589.95. On the New York Stock Exchange, advancing and declining issues are even, showing that no market segment is currently signaling an edge.
The S&P 500 is 0.08%, or 2.23 points, down on the day at 2,856.22. The index is taking a breath from a 4-day winning streak. The S&P is trading near to its all-time high.
SP 500 daily chart August 8
NASDAQ Composite is falling 2.16 points or 0.03% to move at 7,882.97. The Composite is pausing its 6-day winning streak.
By components, the majority of sectors are currently lower this morning. There are lonely three sectors posting gains: Consumer discretionary is the leader with 0.22% gains so far on the day. Financials are 0.05% positive, while Information technology is flat.
The biggest losers are the utility sector with a 0.37% decline, followed by the healthcare with 0.21% and the consumer staples with a 0.21% drop.
CFRA analyst Sam Stovall highlighted the economic optimism in the US market in a recent article, “the pace of economic growth and share-price appreciation remains upbeat.”
“As communicated in our second-half outlook, we think this economic expansion will continue for an extended period of time. We see its low trajectory since its beginning in June 2009 allowing it to remain aloft for longer than normal, as it did not expend precious fuel in a typical jack rabbit-like start, as was the case during the early phases of typical post-war economic expansions,” Stovall said.
