Fundamentals Come to the Rescue for Everything But Tech Stocks

Fundamentals Come to the Rescue for Everything But Tech Stocks

Fundamentals Come to the Rescue for Everything But Tech Stocks

China's imposition of tariffs on a US$3 billion list of USA goods including pork and apples was expected, but still helped send markets down in what has become a jittery environment over trade war fears, said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.

Stocks closed sharply lower on Wall Street as technology companies took heavy losses and investors anxious about escalating trade tensions with China. The S&P 500 Index slid 2.2%, or 58.99 points. So while the Nasdaq 100 Index would have to fall about 11 percent to find valuation support on this metric, assuming forward earnings remain static at current levels, the S&P 500 Index would require only a 6 percent discount. The Russell 2000 index of smaller-company stocks fell 36.90 points, or 2.4 percent, to 1,492.53.

Wall Street surged on Thursday, bringing an upbeat end to a tumultuous, holiday-shortened week as technology stocks rebounded, but the S&P 500 and the Dow Jones Industrial Average posted their biggest quarterly declines in more than two years.

The Dow is down 1,075.03 points, or 4.3 percent.

Shares of Tesla jumped, up 8.2 percent as of 2.05pm in NY, after the vehicle maker reassured investors by saying it will not need to raise additional capital this year. The company has lost $83 billion in market value since mid-march.

The price of gold climbed $19.60, or 1.5 percent, to $1,346.90 an ounce and silver jumped 40 cents, or 2.5 percent, to $16.67 an ounce as some investors took money out of stocks and looked for safer investments.

Trump on Monday again criticized the e-giant's tax treatment as well as its its use of the United States Postal Service, tweeting: "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon".

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Microsoft dropped $2.97, or 3.3 percent, to $88.30 and Google's parent company, Alphabet, shed $31.13, or 3 percent, to $1,006.01. They were down 5.1 percent on Monday afternoon.

COMMODITIES: Benchmark U.S. crude lost $1.71, or 2.7 percent, to $63.23 a barrel in NY.

The amount of goods affected is a small share of China's $150 billion in annual imports of US goods.

Snap's stock fell 8.9 percent Monday. Tesla Inc., the heavily indebted electric vehicle maker, is struggling to explain what caused a fatal accident last month in which one of its vehicles crashed into a concrete lane divider while on autopilot.

U.S. Treasury yields fell to two-month lows as investors fled sliding stocks for safety ahead of Friday's closely watched jobs report.

U.S. WTI crude oil +0.7% at $63.46/bbl. Walmart stock fell 3.8 per cent. Trading volumes were light, with some global markets still closed.

The dollar rose to 106.61 yen from 105.85 yen. The euro dipped to $1.2288 from $1.2306. Brent crude, used to price worldwide oils, slid $1.52, or 2.2 percent, to $67.82 a barrel in London. Hong Kong's Hang Seng bucked the trend, ending up 0.2 percent.

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