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US STOCKS-Wall St gives up gains following Trump trade tweet – Yahoo Finance

August 2, 2019 by Zettan

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* All 3 major indexes reverse gains as Trump announces new tariffs

* 10-year Treasury yields dip to more than 2-1/2-year low

* GM, Kellogg, Verizon, Yum Brands post better-than-expected earnings

* U.S. manufacturing grows at slowest pace in nearly 3 years

* Indexes down: Dow 0.85%, S&P 500 0.78%, Nasdaq 0.76% (Updates to late afternoon, changes byline, adds NEW YORK dateline)

By Stephen Culp

NEW YORK, Aug 1 (Reuters) – Wall Street abruptly reversed its gains on Thursday as U.S. President Donald Trump tweeted that he would impose an additional 10% tariffs on $300 billion in Chinese imports, sending the long-running U.S. China trade war that has rattled markets for months back to center stage.

After spending most of the session on track for their best day since June, all three major U.S. stock indices took a sudden U-turn as investors quickly turned into sellers following the tweet.

Trump’s remarks also sent U.S. Treasury yields lower, with the 10-year yield dropping to its lowest level since November 2016.

The CBOE Volatility Index, a gauge of investor anxiety, shot to its highest reading since June 5.

“It shows the market’s sensitivity to trade,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “This is a continuation of the fraying that seems to be going on with the trade talks.

“Nobody knows what Trump’s agenda is, what he would look at as a win,” Carlson added. “Obviously he’s seeing China’s reluctance to do anything toward a resolution and he’s throwing in a grenade.”

Earlier in the session, Wall Street got a boost from positive earnings from a wide range of companies, including General Motors Co, Kellogg Co, Verizon Communications Inc and Yum Brands Inc, among others.

In economic news, the U.S. manufacturing sector expanded at its slowest pace in almost three years in July, according to the Institute for Supply Management’s purchasing manager index (PMI).

“The manufacturing space in the U.S. is slowing,” said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York. “It’s something to be mindful of.

“If you want to say the Fed had to cut rates, that’s a good reading to point to,” Pavlik added.

Investors now look to Friday’s release of the Labor Department’s closely watched jobs report, which is expected to show the U.S. economy added 164,000 jobs last month, with the unemployment rate seen holding steady at 3.7%.

The Dow Jones Industrial Average fell 227.81 points, or 0.85%, to 26,636.46, the S&P 500 lost 23.38 points, or 0.78%, to 2,957 and the Nasdaq Composite dropped 61.86 points, or 0.76%, to 8,113.56.

Of the 11 major sectors in the S&P 500, eight were trading lower, with financials and trade-sensitive industrials seeing the biggest losses.

Second-quarter earnings season continues at full throttle, with 355 of S&P 500 companies having reported. Of those, 74.4% have bested Street estimates, according to Refinitiv data.

Analysts now see S&P 500 earnings growth of 2.5%, up from just 0.3% a month ago, per Refinitiv.

Pick-ups and SUVs drove General Motors’ second-quarter profit beat, but the automaker’s stock turned negative after the Trump tweet and was last down 0.6%.

Verizon shares rose 0.6% after the largest U.S. mobile carrier surprised consensus estimates to the upside, reporting more net monthly phone subscribers than expected.

Kellogg surged 10.1% as higher North American demand helped the packaged food company beat second-quarter estimates.

Shares of Yum Brands Inc jumped 4.4% after beating analyst profit and sales expectations on better-than-expected growth at all its restaurant chains, which include Taco Bell and Pizza Hut.

Declining issues outnumbered advancing ones on the NYSE by a 1.57-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favored decliners.

The S&P 500 posted 28 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 73 new highs and 97 new lows. (Reporting by Stephen Culp; Editing by Dan Grebler)

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Filed Under: gains, STOCKS-Wall Tagged With: gains, STOCKS-Wall

China gains, auto sector lift Asian shares, but sentiment fragile – Investing.com

May 28, 2019 by Zettan

© Reuters. Pedestrians are reflected on an electronic board showing stock prices outside a brokerage in Tokyo
© Reuters. Pedestrians are reflected on an electronic board showing stock prices outside a brokerage in Tokyo

By Andrew Galbraith

SHANGHAI (Reuters) – Asian shares rose on Tuesday, lifted by gains in China and as auto firms climbed on merger news, but broad uncertainties over trade and economic growth kept investor enthusiasm in check.

European equity markets were expected to open higher. In early European trade, pan-region were up 0.39% at 3,365, German were up 0.39% at 12,112, futures were up 0.5% at 7,299.5, and France’s were up 0.41% at 5,319.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.38%, and U.S. rose 0.22% to 2,837.25, pointing to gains when U.S. markets reopen on Tuesday after a holiday.

Despite the day’s gains, Joanne Goh, Asia equity strategist at DBS in Singapore, said broad market sentiment remained uncertain ahead of a possible meeting between the Chinese and U.S. presidents at the G20 summit next month.

“There’s still a lack of direction in the markets in terms of all the different asset classes,” she said.

“You actually see Chinese bond yields are ticking up, but that shouldn’t be the case because we are expecting stimulus and bond yields should start to come off…there’s quite a lot of uncertainty in the markets right now.”

Chinese blue-chips climbed 0.61% a day after data showed Chinese industrial firms’ profits shrank in April, which could prompt more government stimulus to support the slowing economy.

A planned increase in the weighting of Chinese A-shares in MSCI indexes after the market close later on Tuesday also boosted shares.Seoul’s added 0.37%, while Australian shares gained 0.45%. Japan’s stock index finished 0.37% higher.

In China’s debt markets, 10-year government bond futures for September delivery, the most-traded contract, rebounded 0.34% on Tuesday having dropped as much as 0.71% the day before, after China’s takeover of a troubled bank sparked concerns of wider financial risks.

“With economic indicators mixed and trade war risks lingering, the bias is still tilted towards loose monetary policy to cushion growth. We think that the rise in longer-term (Chinese) govvie…yields is probably not warranted,” DBS analysts said in a note.

The equity market gains in Asia followed a relatively light session in Europe on Monday, with UK and U.S. financial markets closed for holidays.

European auto shares had rallied after Italian-American carmaker Fiat Chrysler confirmed it had made a “transformative merger” proposal to French peer Renault (PA:) in a deal that would create the world’s third-biggest carmaker. That sector rally spilled into Asia with Mitsubishi Motors Corp in Japan adding 5.95% and Nissan Motor Co gaining 2.31%.

Shares in Hong Kong-listed Geely Automobile Holdings Ltd jumped 5.47%.​ Provisional results from EU elections also buoyed markets after pro-union parties kept a firm grip on power in elections to the European Parliament. The pan-European added 0.22%.

“Although Eurosceptic and anti-establishment parties didn’t win as many seats as expected, their influence has increased significantly. This could have implications for the political color of key EU positions,” said Rodrigo Catril, senior FX strategist at National Australia Bank.

“The Parliament composition is also likely to have implications on the priority agenda for future EU reform, particularly with respect to things like immigration, fiscal spending and fiscal union,” he added, noting a decrease in bond yields pointed to continued risk aversion.

The yield on benchmark 10-year German Bunds fell to -0.147% on Monday, its lowest since September 2016.

On Tuesday, U.S. yields were also lower. Benchmark yielded 2.3097%. The two-year yield touched 2.1724%.

Trade worries remain high on investors’ list of concerns. U.S. President Donald Trump said on Monday that Washington was not ready to make a deal with Beijing but he expected one in the future, while at the same time pressing Japanese Prime Minister Shinzo Abe to even out a trade imbalance with the United States.

The dollar was flat against the yen at 109.50, and fell 0.13% against the euro, with the common currency buying $1.1182.

The , which tracks the greenback against a basket of six major rivals, was 0.17% higher at 97.782.

In commodity markets, oil prices extended gains after rising more than 1% on Monday on tensions in the Middle East and OPEC-led supply cuts, as well as continuing Russian supply disruptions after a contamination problem discovered last month.

0.29% higher at $70.31 per barrel, having earlier dipped below the $70 mark, and U.S. West Texas Intermediate crude added 1.16% to $59.31 per barrel.

was down 0.12% at $1,283.30 per ounce.

, which on Monday touched $8,939.18, its highest in more than a year, was down 0.55% at $8,722.61. The cryptocurrency topped $8,000 for the first time since July 2018 on May 13.

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Filed Under: China, gains Tagged With: China, gains

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