US Stocks Slide on Trade War Worries 11/20 13:54
Stocks moved broadly lower in afternoon trading on Wall Street Wednesday as
investors turned anxious about the possibility that the U.S. and China may not
reach a trade deal before next year.
(AP) -- Stocks moved broadly lower in afternoon trading on Wall Street
Wednesday as investors turned anxious about the possibility that the U.S. and
China may not reach a trade deal before next year.
A published report suggested a "phase one" trade pact may not be completed
this year as negotiators continue to wrestle over differences. Beijing is
pressing Washington to agree to broader tariffs rollbacks on Chinese goods.
Another potential hurdle: The Senate's passage of a resolution in support of
human rights in Hong Kong following months of antigovernment protests. China
condemned the move and threatened "strong countermeasures."
President Donald Trump said Tuesday he was prepared to raise tariffs on
Chinese exports if the nations can't reach an agreement on trade.
Investors have been hoping the world's two biggest economies can make a deal
before new and more damaging tariffs take effect next month. Growing optimism
among investors that the trade talks were making progress helped pave the way
for gains in the market in recent weeks, including a string of all-time highs
for the major stock indexes.
Technology and communication services companies were among the biggest
losers Wednesday. HP fell 2.1% and AT&T slid 3.6%.
Bank of America dropped 1% as financial stocks fell broadly along with bond
yields. The yield on the 10-year Treasury slid to 1.74% from 1.78% late
Tuesday. Falling bond yields hurt banks because they are a benchmark for the
interest rates lenders charge on mortgages and other loans.
Energy companies held up better than the rest of the market as oil prices
jumped 3.3%. ConocoPhillips rose 3.2%.
Utilities also rose as traders moved to shift assets into less-risky and
higher-dividend paying stocks.
Target and Lowe's both made sharp gains after reporting encouraging earnings
KEEPING SCORE: The S&P 500 index was down 0.7% as of 2:03 p.m. Eastern time.
The Dow Jones Industrial Average fell 195 points, or 0.7%, to 27,738. The
Nasdaq slid 0.8%. The Russell 2000 index of smaller company stocks also dropped
Major stock indexes in Europe also fell.
CRACK SHOT: Target surged 12.7% after handily beating Wall Street's
third-quarter earnings estimates. The retailer also raised its profit forecast
for the year.
PROFIT REPAIR: Lowe's rose 3.6% after raising its profit forecast for the
year following a solid third quarter. The home improvement retailer has been
working to improve profit and sales to better compete with rival Home Depot.
Home Depot, which cut its profit forecast after reporting disappointing
earnings on Tuesday, fell 2.2%.
THAT'S NOT VERY HIP: Urban Outfitters plunged 14.9% after the clothing and
accessories retailer fell short of Wall Street's third-quarter profit and sales