U.S. Markets open in 6 hrs 2 mins

US STOCKS-Trump comments on China spook Wall Street

By Akanksha Rana and Medha Singh

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

* Indexes down: Dow 1.90%, S&P 1.94%, Nasdaq 2.33%

* China unveils retaliatory tariffs on U.S. goods

* Powell says will "act as appropriate" to support growth (Updates to early afternoon)

By Akanksha Rana and Medha Singh

Aug 23 (Reuters) - U.S. stock indexes slumped nearly 2% on Friday after President Donald Trump told U.S. companies they should look for ways to close their China operations, following Beijing's announcement that it would impose retaliatory tariffs on U.S. goods.

Trump's assertion that the U.S. would be "far better off" without China wiped out what would have been Wall Street's first weekly gain since July, while also knocking back the impact of a speech by Federal Reserve Chief Jerome Powell supporting further cuts in interest rates.

China had earlier hit back with tariffs on U.S. goods worth $75 billion including agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on Sept. 1 and others on Dec. 15.

"It (Trump's tweet) has certainly heightened concerns about trade and its drag on global growth," said Craig Bishop, lead strategist of fixed income group, RBC Wealth Management at Minneapolis.

"It has heightened chances of a recession. The President is his own worst enemy when he tries to manage both fiscal and monetary policies."

Trump also reacted furiously to Powell linking the trade war to risks to the U.S. economy.

All the major S&P subsectors were in the red, with tariff-sensitive sectors such as technology, industrials, energy and materials selling off the most.

Apple Inc, which has borne the brunt of the recent developments in the tariff war, was down 4%, weighing the most on Dow. Chipmakers, which rely heavily on China for their revenue, also took a hit, with the Philadelphia chip index sliding 3.6%.

At 1:06 p.m. ET, the Dow Jones Industrial Average was down 499.75 points, or 1.90%, at 25,752.49, the S&P 500 was down 56.77 points, or 1.94%, at 2,866.18. The Nasdaq Composite was down 186.17 points, or 2.33%, at 7,805.22.

U.S. stocks had earlier recovered after Powell said the central bank would "act as appropriate" to keep the current economic expansion on track, supporting bets on a further decline in key borrowing costs.

With a spike in trade tensions, traders have revived expectations of a more aggressive 50 basis point rate cut by the Fed in September, according to CME Group's FedWatch tool.

"Interest rate cuts, while they help the economy, they're not going to be enough to offset a major global trade war. It seems that's the direction we're heading in," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

Shares of Bunge Ltd fell 2.8%, while those of Archer Daniels Midland Co were down 1.4%, after China said it would impose an extra 5% tariff on U.S. soybeans and additional 10% duties on U.S. wheat, corn and sorghum.

Among the few bright spots, cloud-based service provider Salesforce.com Inc gained 2.9% after it forecast full-year revenue above estimates, while income-tax filing software company Intuit Inc rose 2.9% after its quarterly revenue beat expectations.

Declining issues outnumbered advancers for a 4.07-to-1 ratio on the NYSE and a 4.40-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs and 25 new lows, while the Nasdaq recorded 36 new highs and 120 new lows.

(Reporting by Akanksha Rana, Medha Singh, Sruthi Shankar in Bengaluru, Richard Leong in New York; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta)

  • Is Air New Zealand Limited (NZSE:AIR) Trading At A 38% Discount?
    Business
    Simply Wall St.

    Is Air New Zealand Limited (NZSE:AIR) Trading At A 38% Discount?

    Does the September share price for Air New Zealand Limited (NZSE:AIR) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. This is done using the Discounted Cash Flow (DCF) model.

  • Violence Flares as Protesters Defy a Police Ban to March Through Hong Kong's Streets
    World
    Time

    Violence Flares as Protesters Defy a Police Ban to March Through Hong Kong's Streets

    Protesters in Hong Kong once again defied a police ban Sunday to march through the territory's downtown districts in their push for greater political freedom, but what began as a peaceful demonstration quickly turned violent. Shortly after the march began, protesters set up barricades on Harcourt Road, near the city's legislature and main government offices, and hurled bricks and petrol bombs. Local news broadcasts showed protesters burning the Chinese flag and tearing down and burning a large banner that had been erected to commemorate China's upcoming national day on Oct. 1.

  • The 9 Best Stocks to Buy for the Next Decade
    Business
    InvestorPlace

    The 9 Best Stocks to Buy for the Next Decade

    That's what you call “pulling power,” and it's a big reason why AMZN stock will be a winner for the long haul and why it's a top stock to buy for the next decade. Apple (AAPL) You can say what you want about the iPhone maker's best days being behind it, but I have a feeling Apple (NASDAQ:AAPL) will continue to create products people want to buy for years to come. What these products are, I couldn't tell you … What I know is that Apple will continue to generate a huge amount of free cash flow to reward shareholders for their patience and loyalty.

  • Aldi plans massive London expansion as sales soar
    Business
    Yahoo Finance UK

    Aldi plans massive London expansion as sales soar

    Discount German supermarket Aldi said on Monday that it plans to double its London store count to more than 100. The chain will focus on opening Aldi Local stores, which are around half the size of its traditional stores and stock around 1,500 products, chief executive Giles Hurley said. London shoppers regularly tell us they would switch to Aldi if there was one nearby, so there is clearly a significant growth opportunity for us in the capital,” he said.

  • Fannie Mae and Freddie Mac Won't Go to Market Until End of 2020, FHFA Director Says
    Business
    Bloomberg

    Fannie Mae and Freddie Mac Won't Go to Market Until End of 2020, FHFA Director Says

    Federal Housing Finance Agency Director Mark Calabria discusses the outlook for Fannie Mae and Freddie Mac with Bloomberg's Vonnie Quinn on "Bloomberg Markets."

  • AT&T Stock: How Much Downside Do Analysts See?
    Business
    Market Realist

    AT&T Stock: How Much Downside Do Analysts See?

    On September 13, analysts had a consensus 12-month target price of $35.88 on AT&T, which implies a downside potential of 5.4% from its last closing price of $37.91. The target price has risen from $34.54 a month ago. AT&T stock: Technical levels

  • Bill Gates: “Economists don’t actually understand macroeconomics”
    Business
    Quartz

    Bill Gates: “Economists don’t actually understand macroeconomics”

    Bill Gates takes a dim view of economists' ability to know what's going on in the economy. “Too bad economists don't actually understand macroeconomics,” the Microsoft co-founder noted during a recent interview with Quartz. You won't get a consensus between economists quite the way that if you dropped a ball out your window and called up physicists and asked, 'What the hell happened?' There's so many factors including what [economist John Maynard] Keynes called 'animal spirits' in the economic equation that we don't have predictability.

  • What Did Henry Schein, Inc.'s (NASDAQ:HSIC) CEO Take Home Last Year?
    Business
    Simply Wall St.

    What Did Henry Schein, Inc.'s (NASDAQ:HSIC) CEO Take Home Last Year?

    In 1989 Stanley Bergman was appointed CEO of Henry Schein, Inc. (NASDAQ:HSIC). First, this article will compare CEO compensation with compensation at similar sized companies. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance.

  • Cruise giant to introduce new ship at South Florida port
    Business
    American City Business Journals

    Cruise giant to introduce new ship at South Florida port

    Royal Caribbean Cruises will debut its newest ship, Odyssey of the Seas, in Fort Lauderdale next year. The ship is set to make its maiden voyage from Port Everglades Nov. 5, 2020, according to the Miami-based cruise line's website. Port Everglades will serve as its homeport and the ship will split its time between South Florida and Europe.

  • Q&A: Why is the attack in Saudi Arabia affecting oil prices?
    Business
    Autoblog

    Q&A: Why is the attack in Saudi Arabia affecting oil prices?

    The strike on the heartland of Saudi Arabia's oil industry, including damage to the world's biggest petroleum-processing facility, has driven oil prices to their highest level in nearly four months. Here are some facts about the impact on oil supply and spare capacity: Why is this so disruptive for global oil supplies? The attack on Saudi oil facilities on Saturday not only knocked out over half of the country's production, it also removed almost all the spare capacity available to compensate for any major disruption in oil supplies worldwide.

  • Why The Toronto-Dominion Bank's (TSE:TD) CEO Pay Matters To You
    Business
    Simply Wall St.

    Why The Toronto-Dominion Bank's (TSE:TD) CEO Pay Matters To You

    Bharat Masrani became the CEO of The Toronto-Dominion Bank (TSE:TD) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. The aim of all this is to consider the appropriateness of CEO pay levels.

  • Why the Saudi oil attack is a ‘big deal’ that could be a ‘game changer’ in stock markets and crude prices
    Business
    MarketWatch

    Why the Saudi oil attack is a ‘big deal’ that could be a ‘game changer’ in stock markets and crude prices

    An intensifying Middle East conflict is threatening to throw the world's energy market into disarray after weekend drone attacks destroyed parts of Saudi Aramco's Abqaiq plant — one of the world's largest processors of oil — and a separate nearby oil field. On Saturday, the drone attacks, directed at Saudi Arabian oil facilities that account for nearly 10 million barrels of crude-oil production, resulted in massive plumes of black smoke emanating from the oil field, and a shutdown that could lead to about 50% of its production being at least temporarily thrown offline. Prominent crude-oil strategist Phil Flynn at Price Futures Group told MarketWatch on Sunday that the drone strike was a “big deal” that could result in a major spike in crude-oil prices, because of the potential disruption to global supplies.

  • Why Tesla Seems to Be Struggling with Q3 Deliveries
    Business
    Market Realist

    Why Tesla Seems to Be Struggling with Q3 Deliveries

    We see an uncanny similarity between Tesla's record deliveries in Q4 2018 and Q2 2019, as both quarters coincided with the gradual withdrawal of the federal tax credit. Tesla cars were eligible for a $7,500 tax credit last year, which fell to $3,750 on January 1, 2019. On July 1, the tax credit decreased further to $1,875.

  • AMD’s Revenue Could Rise Further, Says Moody’s
    Business
    Market Realist

    AMD’s Revenue Could Rise Further, Says Moody’s

    On September 13, Moody's Investors Service maintained a positive stance on the revenue of chip maker Advanced Micro Devices (AMD). Moody's expects AMD's revenue to rise significantly in the second half of 2019 and 2020. The company's new product offerings, improved designs, and higher market share are expected to drive its revenue growth.

  • Cannabis Roundup: MMEN, ACB, WEED, and CTST
    Business
    Market Realist

    Cannabis Roundup: MMEN, ACB, WEED, and CTST

    The cannabis sector was also down today, as its ETFs traded in the red. The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 1.9% and 2.3%, respectively. Also, the majority of cannabis stocks were trading lower.

  • Business
    MoneyShow

    Vanguard's Five Best Income Funds

    Investing a portion of a portfolio across several funds from the same provider, such as the best Vanguard dividend funds, can offer investors protection from market fluctuations and deliver long-term returns, explains income investing specialist Ned Piplovic, editor of DividendInvestor. The lowest yield among these funds is 3.4% and each one of these funds has delivered a total return of more than 10% over the trailing 12 months. Additionally, four of these funds have also delivered double-digit percentage total returns over the past three and five years.

  • Fox Business Network Host Lou Dobbs Tells Viewers President Donald Trump Makes Weekends 'Possible for Us All'
    News
    Meredith Videos

    Fox Business Network Host Lou Dobbs Tells Viewers President Donald Trump Makes Weekends 'Possible for Us All'

    On Friday evening, Fox Business Network host Lou Dobbs told his viewers, “Have a great weekend. The President makes such a thing possible for us all.

  • Crude Oil Prices Face New Reality As 'Historic' Attack Shatters Huge Misconception
    Business
    Investor's Business Daily

    Crude Oil Prices Face New Reality As 'Historic' Attack Shatters Huge Misconception

    Crude oil prices soared following an attack on Saudi Arabia's output over the weekend, resulting in the largest disruption of oil supplies ever. Oil giants rallied, and shale stocks popped. It will reportedly take longer for Saudi Aramco to restore production at its Abqaiq processing plant following a drone attack over the weekend.

  • Does Plug Power's (NASDAQ:PLUG) Share Price Gain of 84% Match Its Business Performance?
    Business
    Simply Wall St.

    Does Plug Power's (NASDAQ:PLUG) Share Price Gain of 84% Match Its Business Performance?

    One simple way to benefit from the stock market is to buy an index fund. Just take a look at Plug Power Inc. (NASDAQ:PLUG), which is up 84%, over three years, soundly beating the market return of 38% (not including dividends). Plug Power isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS).

  • How the Fed and Saudi Arabia Could Affect Gold Prices
    Business
    Market Realist

    How the Fed and Saudi Arabia Could Affect Gold Prices

    Yesterday, gold prices rose around 1%, or $15.90, following drone attacks on Saudi Arabia's Aramco oil facilities on September 14. The US blamed Iran for the attacks, but Iran denied the allegations.

  • Stock Futures Dip, China’s Yuan Drops with Shares: Markets Wrap
    Business
    Bloomberg

    Stock Futures Dip, China’s Yuan Drops with Shares: Markets Wrap

    U.S. and European stock futures dipped, and Treasuries saw modest gains after rising Monday, as investors gauged the implications of the strike on Saudi Arabian oil facilities. China's yuan dropped and Chinese and Hong Kong equities slid in the wake of the country's central bank refraining from lowering one of its interest rates Tuesday. Japan's Topix index rose, while stocks in Seoul and Sydney were little changed.

  • Saudi Attacks Aren't Bullish for One Energy Market
    Business
    Bloomberg

    Saudi Attacks Aren't Bullish for One Energy Market

    The windfall accruing to oil producers after the weekend's attacks in Saudi Arabia is a bad sign for U.S. natural gas. Flaring of natural gas, when producers burn the excess that they can't use or sell, is also hitting records. Preliminary data from Rystad Energy show producers in the Permian shale basin flared more than 800 million cubic feet per day in June.

  • FAA chief to meet with Boeing officials, test 737 MAX simulator
    Business
    Reuters

    FAA chief to meet with Boeing officials, test 737 MAX simulator

    New Federal Aviation Administration (FAA) chief Stephen Dickson plans to fly to Seattle this week to fly "newly configured" Boeing 737 MAX software in a simulator and will visit with Boeing officials, the agency said Monday. Boeing plans to revise the 737 MAX software to take input from both angle-of-attack sensors in the MCAS anti-stall system linked to two deadly crashes that led to a global grounding of the plane in March. The FAA confirmed that Dickson, who took over as administrator in mid-August, has no firm timeline for the grounded 737 MAX to resume flights or when Boeing will turn over final documentation.

  • Russia’s Main Gas Route to Europe Seen at Risk After Opal Ruling
    World
    Bloomberg

    Russia’s Main Gas Route to Europe Seen at Risk After Opal Ruling

    Russia may hesitate to strike a multiyear deal with the European Union and Ukraine on natural gas supplies after an EU court ruling on a key German pipeline. The judgment last week reduces the options Gazprom PJSC has to ship billions of dollars of gas to its biggest market without using Ukraine's pipeline network. But Russia may see the logic in the decision as flimsy and consider it to be a political rather than a valid legal move, said Katja Yafimava, a senior research fellow at the Oxford Institute for Energy Studies who specializes in European gas regulation.

  • 7 Momentum Stocks to Buy On the Dip
    Business
    InvestorPlace

    7 Momentum Stocks to Buy On the Dip

    In early September, we have seen a violent, significant and largely unprecedented shift in the investment landscape from momentum stocks to value stocks. In response to rising recession fears, investors ditched economically sensitive value stocks that require a good economy to head higher, and piled into momentum growth stocks that don't require a good economy to head higher (because they have such strong secular tailwinds).