Stocks drop amid renewed concerns over China tariffs
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.
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.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38386.09 | +146.43 | +0.38% |
| SP500 | S&P 500 | 5116.17 | +16.21 | +0.32% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15983.084278 | +55.18 | +0.35% |
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.
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.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CPB | CAMPBELL SOUP CO. | 44.93 | +0.08 | +0.18% |
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.