Stocks rally after early plunge

06 March, 2018, 02:15 | Author: Terri Saunders
  • E-mini Dow Jones Industrial Average

USA stocks dove in another dizzying day of trading after President Donald Trump promised stiff tariffs on imported steel and aluminum. Markets tumbled from Asia to Europe on fears that escalating retaliation between countries could choke off trade and the global economy.

The Standard & Poor's 500 index rose 13 points, or 0.5 percent, to 2,691.

Investors remain focused on President Donald Trump's threat to impose tariffs on steel and aluminum imports.

"I don't know if this will cause a trade war, and obviously that's the fear, " said Lamar Villere, portfolio manager at investment manager Villere & Co.

The broad-based S&P 500 shed 1.7 percent to 2,667.39, while the tech-rich Nasdaq Composite Index fell 1.8 percent to 7,140.94.

The fall - by more than 1%, again for a third day in a row for the Dow - the first time in two years that it has fallen 1% or more three days straight - pushed the ASX futures market lower as well. The worst weekly loss of previous year was 1.4 percent.

The S&P 500 trimmed its loss as the day went on, and it was virtually flat at 2,677, as of 3 p.m.

An afternoon recap of the day's most important business news, delivered weekdays.

The Dow Jones industrial average fell 204, or 0.8 per cent, to 24,404, and the Nasdaq composite rose 37, or 0.5 per cent, to 7,218.

Shares of big USA steel companies and manufacturers were under pressure on uncertainty over the effects of tariffs. Apple, the most valuable USA company, got 63 percent of its sales from outside the United States in its latest fiscal year.

Canada will retaliate if the United States imposes tariffs on Canadian steel and aluminum products, Foreign Affairs Minister Chrystia Freeland said. He vowed that "the European Union will react firmly and commensurately to defend our interests". That means Apple and other big USA companies are dependent on customers not only in Peoria but also Paris and Peru.

Shares of Canopy Growth Corp rose 9.5 percent to C$29.96.

Prime minister's warning to local councils to approve more homes faces backlash
More freedom will be given to local authorities to make the most of existing brownfield land to build homes that maximise density. Theresa May will warn developers they risk losing bids for planning permission if they have a record of failing to build houses.


Companies in the S&P 500 got 43 percent of their sales from outside the United States in 2016, according to the most recent data from S&P Dow Jones Indices. Aerospace giant Boeing lost $12.52, or 3.5 percent, to $349.69.

Blue-chip companies, which do more sales overseas than smaller ones, fared worse than the rest of the market. The Nasdaq fell 57 points, or 0.8 percent, to 7,129.

Stocks wavered as investors dissected Federal Reserve Chairman Jerome Powell's latest comments for clues about the future path of interest rates.

Powell told the Senate Finance Committee that he does not see inflation in workers' wages "at a point of acceleration".

Earlier in the week, Powell's testimony helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy.

Inflation has been low in the years following the Great Recession, but if it jumps higher, it could force the Federal Reserve to raise short-term rates more sharply than investors are expecting.

Worries about potentially higher rates and inflation have reintroduced markets to volatility following their unusually calm run in 2017 and early this year.

Oil prices continue to drop following a report on Wednesday that showed more crude supplies in inventories last week than analysts expected.

US crude oil futures settled 1.1 percent lower at $60.99 a barrel, under pressure from a retreating stock market and worries about surging USA crude output. Brent crude, the worldwide standard, lost 90 cents to $63.83 a barrel. Silver climbed 19 cents to $16.47 per ounce, and copper added 2 cents to $3.12 per pound.

The dollar fell to 105.54 Japanese yen from 106.24 yen late Thursday. The euro rose to $1.2326 from $1.2255, and the British pound rose to $1.3790 from $1.3768.

The ASX 200 year to date was down 0.8% at the end of February - yesterday's fall took that to 1.5% and today's drop could push it well past 2%. The FTSE 100 in London gave up 1.5 per cent.

Recommended:

  • United States  aircraft carrier in Vietnam for historic visit aimed at Beijing

    United States aircraft carrier in Vietnam for historic visit aimed at Beijing

    Defense Secretary James Mattis and followed months of backroom military diplomacy between Hanoi and the Pentagon. Navy as long as it contributes to regional peace and stability".
    Naga governor asks Neiphiu Rio to form government

    Naga governor asks Neiphiu Rio to form government

    The outcome, people of the state feel, would be a "defining moment" for both the NPF and the NDPP-BJP combine. They said the BJP would announce its decision formally only after the legislature party meetings.
    Australia cardinal's alleged sex victims testify in court

    Australia cardinal's alleged sex victims testify in court

    Prosecutor Mark Gibson asked the court to allow Pell's accusers to have an assistant and a support dog next to them for comfort. Pell was charged last June with sexually abusing multiple people in his Australian home state of Victoria.
  • Allison Janney on Oscar Win: 'I Did It All by Myself

    Allison Janney on Oscar Win: 'I Did It All by Myself

    Asked if her day-to-day life might change now that she's an Oscar victor , Janney said she had to go right back to work at 10 a.m. Blige ( Mudbound ), Lesley Manville ( Phantom Thread ), Laurie Metcalf ( Lady Bird ) and Octavia Spencer ( The Shape of Water ).
    With 2 Seats, BJP Usurped Power In Meghalaya Through Proxy: Rahul Gandhi

    With 2 Seats, BJP Usurped Power In Meghalaya Through Proxy: Rahul Gandhi

    The return of the Gandhi scion has come amid criticism for not being with his party when it suffered losses in North East. Ending 25 years of uninterrupted rule of the CPI (M)-led Left Front in Tripura, the BJP and IPFT won 43 seats.
    Amazon may begin offering branded checking accounts

    Amazon may begin offering branded checking accounts

    While U.S. policy makers have for years been skeptical of letting big companies move into banking services, that may be changing. Amazon is also weighing entering into the health and prescription drugs business.
  • Netanyahu quizzed by Israeli police over fraud allegations

    Netanyahu quizzed by Israeli police over fraud allegations

    Netanyahu has repeatedly denied any wrongdoing and has dismissed the accusations as a witch hunt orchestrated by a hostile media. Palestinians oppose the embassy move, one of the major complications as the Trump team tries to come up with a peace deal.
    'House of Cards' final season trailer is here, without Kevin Spacey

    'House of Cards' final season trailer is here, without Kevin Spacey

    The latest season is set to return for its final eight episodes in the fall, as reported by The Hollywood Reporter . I think it can, mostly because Wright is a phenomenal actress.
    Duterte praises Trump for proposing 'death penalty' for drug dealers

    Duterte praises Trump for proposing 'death penalty' for drug dealers

    "The drug dealers, the drug pushers, they're really doing damage", Trump said at an opioid event at the White House Thursday. Trump said his whole administration is working to defeat the scourge of painkiller and heroin abuse.
  • YouTube AI can swap out video backgrounds without a green screen

    YouTube AI can swap out video backgrounds without a green screen

    To watch videos on YouTube Go app, you need to complete few steps such as choosing language, adding phone number and email id. According to the engineers, the feature will automatically segment the background and foreground of your videos.
    New York's Utica College still on lockdown after threats

    New York's Utica College still on lockdown after threats

    The school is located about 50 miles from Syracuse and has roughly 3,500 students. "Please continue to shelter in place". The college first reported the lockdown an hour and a half earlier, and have since called it a "real, credible threat".
    England edge New Zealand in third ODI

    England edge New Zealand in third ODI

    Although the wicket offered variable bounce it held no serious demons and the top nine England batsmen all reached double figures. Bowling: Woakes 10-1-40-2, Wood 6-0-36-0, Curran 7-0-49-0, Stokes 6-0-27-0, Rashid 10-1-34-2, Ali 10-1-36-3, Root 1-0-7-0.


Popular

Nintendo Switch Not Getting New Hardware Version This Year
This is how long it takes for your play time to show up on your Switch profile, so console owners thought nothing of it. It's unclear if this is a permanent issue or if Nintendo will be able to restore the times via a system update .

Historic call: VAR voted into laws of the game
When the technology was used for the first time in the Bundesliga, it resulted in a total of 12 interruptions during the match. Infantino said that while the current VAR system "is not ideal . we have to have the ambition to get close to perfection".

Manchester United pip Palace in EPL
But Manchester United will be very aware of the weekend successes of Spurs and Liverpool and will know the importance of tonights game.

Tristan Thompson Out Indefinitely With Foot Injury
Tristan Thompson will miss "multiple games" with a sprained ankle, the Cavs announced on Sunday. Defensively, the Cavaliers are yielding 110.1 points per game against the opposing teams .

Teen suspected of 'killing parents' in university shooting arrested
The shooting took place around 9:30 a.m.in Campbell Hall, which is part of the Towers residence halls on the west side of campus. Mount Pleasant is about a 285-mile (460-kilometer) drive from the family's hometown of Plainfield , Illinois .

Oscars 2018 Envelopes Are Clearly Labeled to Avoid Another Moonlight Mistake
After last year's headline-making mix-up, Warren Beatty and Faye Dunaway returned to the stage to present the night's top prize. Warren Beatty and Faye Dunaway have presented the best picture Oscar - and this time, nothing went wrong.

IMF Opposes Donald Trump's Import Duty Plan On Steel And Aluminum
The US has made clear that no countries will be exempted from the tariffs, raising acute fears for British exporters. Scott Walker has asked Trump to reconsider his position on tariffs if he wants to protect United States jobs.

What's next for Cris Cyborg? She isn't counting on Ronda Rousey
If the MMA Lab product plays around and keeps his hands low for too much of this fight, he could catch a flying knee to the face. Ortega took the fight on three weeks' notice when Holloway was forced to withdraw from UFC 222 with a leg injury.

Q2 Weather: Falling snow stops, but blowing snow is still trouble
Friday's forecast calls for mostly sunny skies with a high of 61 and an overnight low of 33. Today: Mostly cloudy with a 30% chance for rain this evening and a high near 51 degrees.

All Black Sevens consigned to fifth place playoff
That moved SA to 92 on the standings and extended their lead to 10 points over New Zealand‚ who could only end fifth in Las Vegas. Baker scored two tries as the US scored 19 unanswered points in the second half to beat the fancied Fijians.