Stocks retreat on Trump's gloomy outlook for China trade

By MarketsFOXBusiness

Peter Navarro: Dow Jones will exceed 30,000 with USMCA and rate cuts

White House trade advisor Peter Navarro says the Dow Jones will exceed 30,000 if Congress passes the USMCA trade deal and the Federal Reserve cuts rates.

Shares of energy and industrial companies weighed on the stock market Wednesday as concerns over growth prospects weakened investor sentiment.

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The declines stemmed from President Trump's comments the day before that the White House may seek to impose new tariffs on China after previously vowing to hold-off sent markets down.

TickerSecurityLastChange%Chg
I:DJIDOW JONES AVERAGES25628.9-623.34-2.37%
SP500S&P 5002847.11-75.84-2.59%
I:COMPNASDAQ COMPOSITE INDEX7751.765644-239.62-3.00%

Railroad operator CSX stock tumbled after it posted lower-than-expected quarterly profit and cut its full-year revenue forecast, reflecting worries about prospects for economic growth amid simmering trade tensions.

That pulled down other railroad companies, including Union Pacific and Norfolk Southern.

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Oil prices fell, which hit shares of producers like Exxon Mobil and Chevron.

Bank of America posted mixed results, with profits coming in higher than Wall Street and revenue falling below expectations.

TickerSecurityLastChange%Chg
CSXCSX CORP.64.62-1.52-2.30%
UNPUNION PACIFIC CORPORATION159.98-6.09-3.67%
KSUKANSAS CITY STHN119.50-3.70-3.00%
XOMEXXON MOBIL CORPORATION67.49-2.08-2.99%
CVXCHEVRON CORP.115.18-2.55-2.17%
BACBANK OF AMERICA CORP.26.47-0.72-2.65%

The yield on the benchmark 10-year Treasury slipped to 2.06 percent. Bond yields and prices move in opposite directions so declining yields indicate strengthening demand for the safety of government debt.

In economic news, U.S. homebuilding fell for a second straight month in June and permits dropped to a two-year low, suggesting the housing market continued to struggle despite lower mortgage rates.

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On Wednesday, investors heard from United Airlines executives on the impact of the grounding of Boeing’s Max fleet. Despite canceling thousands of flights over the past several months, the Chicago-based carrier reported a 54 percent rise in profits in the second quarter.