U.S. stocks ended the trading day sharply lower after President Trump escalated trade war rhetoric Friday, tweeting that he had "hereby ordered" U.S. companies "to immediately start looking for an alternative to China." The Dow Jones Industrial Average (DJIA) fell 614 points, or 2.6% to 25,633, the S&P 500 index (SPX) lost about 75 points, or2.6% to 2,848 and the Nasdaq Composite (COMP) lost 240 points, or 3% to close around 7,751. Trump's tweets were in apparent response to China announcing new tariffs of 5% and 10% on $75 billion in U.S. imports in retaliation for the Trump Administration plans to institute a new round of tariffs on $300 billion in Chinese imports, starting Sept. 1.
Six members of the Standard & Poor's Total Market index and the S&P 500 commanded $1 billion or greater market values when this decade began — only to become penny stocks now. This is based on an Investor's Business Daily analysis of data from Marketsmith and S&P Global Market Intelligence. Suffering these kinds of losses is all the more painful given the powerful run the S&P 500 is on.
Wall Street is getting hit hard on Friday after China announced overnight a new batch of trade tariffs on U.S. imports. President Donald Trump wasted no time responding, hinting on Twitter (NYSE:TWTR) that he is preparing to take action to stop the U.S. dollar's rise to record highs. As a reminder, China responded to Trump's last salvo of import tariffs with an aggressive weakening of their currency — which then caused the U.S. Treasury to label the country a currency manipulator.
Even better is that recent market volatility has sent many investors into healthcare stocks for their high cash flows and strong dividend potential. Many healthcare stocks have long been dividend champions — offering both high initial yields and overall strong dividend growth. For investors looking for income and the ability to keep that income rising over the long haul, healthcare stocks can't be beaten.
The stock market was poised to end the week on a decidedly negative note after the China trade war took a turn for the worse. The Nasdaq today led the downside as semiconductor stocks sold off. Invesco QQQ Trust slumped nearly 3%, weighed down by weakness in Nvidia, Advanced Micro Devices, Lam Research and Broadcom.
Q: “My soon-to-be ex-husband earned a big chunk of money while we were living together, but before we were married. Then, we got married and used $60,000 of that money as a down payment on the home we bought and have lived in ever since, with both of us contributing toward the mortgage. Now, he has moved out and I'm still in the home with our kids.
Doomsday scenarios don't have to come with the hype, speed, and spectacle of a Hollywood blockbuster. A relatively healthy U.S. economy, along with global central banks' willingness to cut interest rates, have allowed some measure of optimism, despite alarming headlines. “It's really the first time in seven or eight years that we are starting to meaningfully derisk across portfolios,” says David Carter, chief investment officer at Lenox Wealth Advisors, which oversees $2 billion.
Mark Galasiewski, Asia and emerging market chief strategist at Elliot Wave, discusses the relationship between Hong Kong protests and stock prices and why he's saying now is a time to buy Hong Kong. He speaks on “Bloomberg Markets: China Open.
President Donald Trump demanded that U.S. companies return to American soil, responding to news that Beijing will slap more tariffs on imports from the U.S., but the shift may be more difficult than people imagine. About 30% to 40% of sales by U.S. industrial companies sales are generated overseas. Mexico, for instance, is the low-cost manufacturing region for the Western Hemisphere.
Highlights From CRON Stock's Recent Earnings Release Cronos recently reported its second-quarter 2019 earnings. The company highlighted four things that it believes are positive developments for its long-term prospects. First, it opened Cronos Device Labs.
Donald Trump once accused the Federal Reserve of not having a "feel" for the market and compared Federal Reserve Chair Jerome Powell to a golfer who can't putt, but on Friday it was the U.S. president that drove markets into the rough. Investors had anxiously awaited Powell's speech on Friday, but his continued pledge to "act as appropriate" to sustain the U.S. economic expansion generated only tepid financial market reaction. Instead, it was Trump who threw markets for a loop, sending the Dow down more than 600 points after he said he was ordering Americans to look for alternatives to doing business in China.
Wouldn't it be nice in all this turmoil to have some stocks that will chug right along, growing their stock price and delivering solid dividend yields, most of which outpace inflation? American States Water (NYSE:AWR) is an interesting utility because it reaches across a couple lines of business. It's a company that manages water resources for over 80 communities in California, particularly around Los Angeles.
The U.S. Strategic Petroleum Reserve (SPR) is having a back to school sale…for oil. They are offering 10 million beautiful barrels of crude to the highest bidder. The U.S. Department of Energy is offering the barrels of sour crude from the SPR for delivery between Oct. 1 and Nov. 30, according to a notice on Wednesday. You see the Strategic Petroleum Reserve was created in the aftermath of the Arab oil embargo.
Jessie Wang, co-founder and chief operating officer at Bigone Lab, discusses how her company analyzes data on consumer and tech companies and the trends she's seeing in the industry. She speaks to Bloomberg's Selina Wang on “Bloomberg Markets: Asia.
Altria has tried to offset this, with price increases on nearly all its brands and investments in vaping startup Juul Labs, pouch product on!, and cannabis company Cronos Group (CRON). On Friday, Morgan Stanley analyst Pamela Kaufman raised her rating on Altria to Equal Weight from Underweight, with a $44 price target. Altria was up 0.5% to $46.82 in morning trading on Friday.
There are a lot of changes on the horizon for 401(k) plans, which is generally good news for workers saving for retirement. In addition, the U.S. House of Representatives has passed legislation, the SECURE Act, which would further enhance retirement accounts for workers and potentially expand benefits to millions more people. -- Annuity options in 401(k) plans provide lifetime income.
Yes, the U.S. ten year Treasury yields 1.59%, not close to 0%, but negative rates seem to be creeping ever closer. For instance, negative interest rates haven't come to U.S. corporate debt, but Euro-denominated bonds issued by the likes of blue-chips Apple (AAPL), McDonald's (MCD), and Pepsi (PEP) carry negative yields. And in Europe, it was postulated that negative rates would never fly in the consumer sphere in terms of banks paying back depositors less than they put in their savings accounts, but that's now changing.
Gold prices surged higher on Friday in the wake of the Fed Chairs speech at Jackson Hole Wyoming and President Trump's tweet. President Trump reacted to the Chinese retaliating to the recent Trump threat of additional tariffs with specific tariffs on 75-billion dollars of goods that are exported to China. China specifically targeted cars and agricultural product which hurts people who live in red states.
Buying into the near–$17 trillion heap of global bonds with negative yields might sound like a losing proposition. “There is a big misunderstanding about negative-yielding debt,” said James Bianco, founder of Bianco Research, in an interview with MarketWatch. With bond prices moving in the opposite direction of yields, the sharp yield decline this summer, as the U.S.-China trade war has raged and American recession fears have bubbled up, has put significant price gains on the table.
Federal Reserve Chairman Jerome Powell said the U.S. economy is in a favorable place but faces “significant risks,” reinforcing bets for another interest-rate cut next month though the remarks failed to mollify President Donald Trump. “Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States,” Powell said Friday in a speech to the Kansas City Fed's annual symposium in Jackson Hole, Wyoming, minutes after China announced it would impose additional tariffs on $75 billion of American goods. “We will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective,” the chairman said.
Trade tensions have compounded with country-specific weaknesses to further mire the global growth outlook, said the International Monetary Fund's chief economist. “There are already a lot of factors weighing on global growth. Some of it is not trade-related, because some of this is coming from weaknesses in emerging markets, which depend upon their own country-specific factors,” IMF chief economist Gita Gopinath told Yahoo Finance at the Federal Reserve's annual Jackson Hole symposium Friday.
The iShares Core High Dividend ETF (NYSEARCA:HDV) has a 12-month dividend yield of 3.23%, which is well above the S&P 500 and 10-year Treasuries. However, this high-dividend ETF follows the Morningstar Dividend Yield Focus Index, which screens companies for financial health, giving the fund a quality look. With an annual fee of just 0.08%, HDV is one of the cheaper high dividend ETFs on the market today.
The Dow Jones was little changed Friday, along with the S&P 500 index and Nasdaq 100, after President Donald Trump hiked China tariffs. That China trade war escalation made good on Trump's vow to respond to Beijing's new retaliatory tariffs. Apple stock and Nike stock, both Dow Jones components, edged lower after hours after big losses Friday.
President Donald Trump on Friday excoriated the Federal Reserve and the man he hand-picked to lead the institution, ramping up his relentless critiques by asking whether the Fed was a “bigger enemy” than China. After Fed chief Jerome Powell declared at a conference in Jackson Hole that the central bank was prepared to sustain the U.S. economy with more rate cuts, Trump upped the ante with more broadsides against Fed policy. In a series of posts on Twitter, the president both lambasted the central bank while demanding that U.S. companies seek alternatives to China as the trade dispute between the two countries takes a turn for the worse.
Tweet Storm. The three major U.S. stock market indexes dropped sharply after President Donald Trump said he would respond to new Chinese tariffs on U.S. goods and told U.S. businesses to find alternatives to China. After Fed Chairman Jerome Powell said he was prepared to stimulate the U.S. economy if it slowed down, the President tweeted, “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?