Stocks drop amid renewed concerns over China tariffs

By MarketsFOXBusiness

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Sevens Report Founder Tom Essaye discusses the S&P 500’s bullish run and the U.S.-China trade debacle.

Stocks fell Thursday following a report that President Donald Trump wants to move ahead with plans to impose tariffs on $200 billion in Chinese goods.

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The Dow Jones Industrial Average dropped 137.65 points, or 0.53%, to 25,986.92. The S&P 500 was down 12.91 points, closing at 2,901.13. The Nasdaq Composite fell 21.32 points, or 0.26%, to 8,088.36.

According to a tweet by Bloomberg reporter Jennifer Jacobs, sources informed her that Trump told aides he wants to move ahead with a plan to impose tariffs on $200 billion in Chinese imports as soon as the public-comment period concludes next week.

FOX Business Network reported that a decision has not been finalized.

Meanwhile, Canadian and U.S. officials were meeting Thursday to renegotiate a NAFTA deal, after the U.S. and Mexico announced a preliminary trade deal between the two nations on Monday. Friday is seen as a deadline for the three countries to come to some agreement.

Earlier Thursday Trump touted the strength of the stock market, tweeting that more good news is coming.

I:DJIDOW JONES AVERAGES27154.2-68.77-0.25%
SP500S&P 5002976.61-18.50-0.62%
I:COMPNASDAQ COMPOSITE INDEX8146.488965-60.75-0.74%

Economic data released on Thursday included initial weekly jobless claims, personal income and consumer spending. Weekly jobless claims rose 3,000 to a seasonally-adjusted 213,000. U.S. personal incomes increased 0.3 percent in July and consumer spending advanced 0.4 percent.

The personal consumption expenditures (PCE) inflation index rose 0.1% in July and the core by 0.2%. The PCE index is the Fed’s preferred inflation gauge.

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In company news, Campbell’s Soup announced Thursday plans to sell its international operations and refrigerated-foods business, abandoning efforts to become a more fresh food-oriented company.

CPBCAMPBELL SOUP CO.41.27-0.41-0.98%

Commodities were mixed.

On Wednesday, shares rose on unexpectedly robust economic news: The government said that second-quarter GDP was revised to 4.2 percent versus the initial 4.1 percent. Analysts had expected no change.

The tech-heavy Nasdaq Composite and broader S&P 500 index closed at record highs -- for the fourth day in a row on Wednesday.

FOX Business’ Ken Martin contributed to this article.

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