Stocks claw back ground lost on trade fears

Randall Padilla
April 11, 2018

The U.S. -based credit rating agency Standard & Poor's (S&P) said Wednesday that despite the global credit outlook being stable, global geopolitical risks remained high, which predominantly stemmed from escalating tensions between the world's two largest economies, the U.S. and China. The Dow Jones Industrial Average was down 340 points at its lows, or 1.3%, but was most recently off 240 points, or 1%, at 24,434, while the S&P 500 index was off 0.9% at 2,686, with the health-care sector off 1.3% and the energy sector down 1.2% in early trade. The Russell 2000 index of smaller-company stocks dipped 29.63 points, or 1.9 percent, to 1,513.30. Boeing and other industrial companies rely heavily on overseas sales and could suffer greatly if global commerce is curtailed by rising trade barriers.

Facebook (FB.O), Amazon (AMZN.O), Alphabet (GOOGL.O) and Netflix (NFLX.O) - collectively known as the "FANG" group - were up between 1.2 percent and 2.6 percent.

If the 200 day moving average lines and support breaks at each (2), the descending triangles suggest that the Dow and S&P end up falling an additional 10%. The S&P 500 and the Nasdaq each declined nearly 2%. The Nasdaq composite dropped 139 points, or 2 percent, to 6,937. Only two of the most active US stocks premarket were higher. Even though investors are optimistic about the state of the global economy and company profits continue to grow, Nixon said the administration is creating the thing investors hate the most: uncertainty.

Stocks were mostly unaffected by the March jobs report, which showed that the US economy added 103,000 positions, down from a much bigger gain in February and well below what analysts were expecting. -China trade tensions stoked investors worries.

Bond prices rose, sending yields lower. The two-year rate fell 4 basis points to 2.266. The lower yields mean banks can't make as much money from lending, and that send bank stocks lower. PayPal dipped $1.88, or 2.4 per cent, to $75.07.

Apple skidded $2.14, or 1.2 per cent, to $170.66 and Cisco Systems declined 63 cents, or 1.5 per cent, to $41.19. Natural gas rose 3 cents to $2.70 per 1,000 cubic feet.

Gold rose $7.60 to $1,336.10 an ounce. Caterpillar fell 3.5 percent. The euro rose to $1.2287 from $1.2256. The FTSE 100 in Britain lost 0.2 per cent. This represents a $0.71 dividend on an annualized basis and a dividend yield of 1.29%.

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