Wall Street slips after Trump casts doubt on quick China trade deal

By MarketsFOXBusiness

Do investors need a resolution to the China trade tensions?

Cresset Wealth Advisors Founding Partner Jack Ablin on the outlook for stocks.

President Trump’s cautionary words Tuesday on prospects for a U.S.-China trade deal offset Fed Chair Jerome Powell’s dovish comments on interest rates to send stocks modestly lower on Tuesday.

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Trump on Tuesday warned that ample work remains on reaching a trade deal with China and resumed threats to impose tariffs on $325 billion imports from the Asian nation.

I:DJIDOW JONES AVERAGES26109.81-25.98-0.10%
SP500S&P 5002916.7-6.95-0.24%
I:COMPNASDAQ COMPOSITE INDEX7991.923132-10.89-0.14%

The comments come after Trump and Chinese President Xi Jinping agreed to withhold the imposition of any new tariffs amid fresh negotiations.

Meanwhile, Powell reiterated his dovish view on interest rates during a speech, saying the central bank will act as appropriate to sustain the U.S. economic expansion. The futures market is fully pricing in a quarter-point rate cut on July 31, with a 29 percent probability for a half-point cut.

Investors also reacted to second-quarter earnings results from JPMorgan Chase, Wells Fargo, Johnson & Johnson and other top U.S. firms. 


Chase’s stock was up slightly after the bank reported better-than-expected earnings through June. The nation’s largest bank earned profits of $2.82 per share, higher than Wall Street predictions.

Shares of Goldman Sachs rose after the investment bank exceeded estimates with profits of $5.81 per share. The firm raised its quarterly dividend 47 percent to $1.25 per share after the Federal Reserve backed its 2019 capital plan, which includes $7 billion in share repurchases. 

JPMJP MORGAN CHASE & CO.108.11-0.58-0.54%
WFCWELLS FARGO & COMPANY44.88-0.38-0.83%
JNJJOHNSON & JOHNSON131.16-1.09-0.82%

Embattled lender Wells Fargo saw profits rise 22 percent to $1.30 per share amid an intense cost-cutting effort as the San Francisco-based firm continues its search for a new top executive.

Outside of Wall Street banks, Johnson & Johnson reported a 42 percent hike in profits to $2.08 per share despite a 1.3 percent decline in total sales to $20.5 billion. Sales in its pharmaceutical division, which accounts for the bulk of the health care conglomerate's earnings, grew 1.7 percent to $10.5 billion.

Johnson & Johnson is facing ongoing scrutiny over its role in the U.S. opioid crisis and potential cancer risks from its baby powder.

APAAPACHE CORP.21.80-0.10-0.43%
CVXCHEVRON CORP.116.58-0.73-0.62%

Crude oil prices tumbled nearly 3 percent or some $2 to $57.89 per barrel after Trump said progress was being made with Iran, indicating tensions in the Mideast may be easing. The decline hit oil producers' shares.


The yield on the 10-year Treasury edged up to 2.12 percent. Bond yields move in the opposite direction of bond prices.