Stock Market News For Aug 02, 2019
Zacks Investment Research | Aug 01, 2019 10:22PM ET
Benchmarks closed lower on Thursday after President Trump announced plans to impose additional tariffs on imports from China. Better-than-expected second-quarter earnings, however, gave some relief to investors.
The Dow Jones Industrial Average dropped 1.1% or 280.85 points at 26,583.42. The DOW recorded 2.8% lower than its record high of 27,369 seen on July 15. It has now fallen three days in a row to its lowest close since June 27. The S&P 500 lost 0.9% or 26.82 points to close at 2,953.56. The Nasdaq Composite Index finished at 8,111.12, losing 0.8% or 64.30 points. The Cboe Volatility Index (VIX) that measures the investor’s anxiety rose by 10.9% at 17.87 that is higher than its last recorded high in June 4.
Decliners outnumbered advancers on the NYSE by a 1.87-to-1 ratio. On Nasdaq, a 2.23-to-1 ratio favored declines issues. 9.89 billion shares were traded compared to 6.48 billion average over the last 20 trading days.
Trump Imposes Further Tariff, Market Doomed
On Thursday, U.S. officials returned from China after two days face-to-face trade talk, but later in the day Trumps tweet impacted the stock market. Trump announced that United States will be imposing 10% tariffs on $300 billion Chinese products from September 1. Though, it does not include the $250 billion goods that are already subjected to tariffs.
This induced fear in minds of investors, as trade talks were due to resume in September and market did not expected any rise in tariffs so soon. Shares of companies that are dependent on China for international trade fell sharply. Apple Inc. (NASDAQ:AAPL) , the tech giant had earlier managed to avoid the impact of trade tariffs, saw its share drop by 2.2%. Two bellwethers in the global trade, Caterpillar Inc. (NYSE:CAT) and Deere & Company’s (NYSE:DE) shares fell 3.7% and 2.7%, respectively. Delivery giant, FedEx Corporation’s (NYSE:FDX) shares dropped 4.2%. The retail sector was also impacted as shares of NIKE, Inc. (NYSE:K) , YETI Holdings, Inc. (NYSE:YETI) and PVH Corp. (NYSE:PVH) fell 3.4%, 6.9% and 6.9%, respectively.
Upbeat Earnings, Only Lifter
While a wave of negative factors keeps strongly impacting the benchmarks, report of better-than-expected earnings keep floating in.
General Motors Company (NYSE:GM) released a better-than-expected second-quarter earnings of $1.64 per share beating the Zacks Consensus Estimate of $1.43. Sales of Pick-up trucks and SUVs had pushed the profit. This Zacks Rank #3 (Hold) shares’ dropped 0.5% following Trump’s tweet. You can see Zacks Investment Research
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