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US stocks fell at the start of trading Tuesday, facing the threat of further escalation of tariffs with the EU, threatening to break a string of eight-day wins for the S & A P 500.
What is the performance of benchmarks?
The Dow Jones Industrial Average
DJIA, -0.72%
was down 223 points, or 0.8%, to 26,115, while the S & P 500 index
SPX, -0.55%
fell 19 points. or 0.7%, at 2877. The Nasdaq Composite Index
COMP -0.28%
slipped 35 points, or 0.4%, to 7,919.
On Monday, the Dow, which lost 83.97 points, or 0.3%, to 26,341.02 points, the S & P 500 rose 3.03 points, or 0.1%, to 2,895.77 points, thus equalizing his longest streak of wins since October 2017. The Nasdaq technology-oriented composite index gained 15.19 points or 0.2% to 7,953.88.
What motivates the market?
A new clash in international trade is being digested by investors early in the morning, after the US Trade Representative's office threatened to impose tariffs on many European products on Monday night. The threat consists of retaliation against subsidies granted by European companies to aircraft manufacturers. Airbus SE
EADSY, -1.74%
If the United States did, the proposed tariffs would affect about $ 11 billion in imports into the United States, including helicopters, bicycles, cheese and wine.
Lighthizer said the Trump administration would wait for the World Trade Organization's permission to implement its obligations. President Donald Trump on Tuesday morning tweeted that the EU had taken advantage of the US, adding that it would "stop soon":
New tensions in international trade come as the Trump administration is on the verge of resolving a year-long dispute with China, which has upset the markets, as such a clash between the world's largest economies could disrupt global economic growth, market players said.
At the same time, British Prime Minister Theresa May was scheduled to meet German Chancellor Angela Merkel and French President Emmanuel Macron to discuss the prospect of a longer deadline for the country's divorce plan. 'European Union.
In addition, the International Monetary Fund reduced growth prospects in 2019 to 3.3% from 3.5% in January and 3.7% in October, marking its third reduction in growth forecasts. six months. The decline was broadly felt, with all major advanced economies, including the United States, and most of the major emerging market economies seeing their outlook deteriorate.
Lily: Brexit Brief: May on Merkel and Macron mission
What do the strategists say?
"The climate in continental Europe is holding up well in the face of heightened tensions between Washington DC and Brussels over the threat of $ 11 billion in tariffs on European imports," said David Madden, market analyst at CMC Markets on Tuesday. research note.
What data are being developed?
A report on employment opportunities for the month of February is expected to be released at 10:00 am ET.
Prior to this report, the reading of small business optimism had hardly changed in March, according to a poll released Tuesday. The National Federation of Independent Businesses said its small business optimism index edged up 0.1 percentage points from a seasonally adjusted 101.8, marking the third consecutive month in a narrow range.
What stocks are under discussion?
Actions of Wynn Resorts Ltd.
WYNN -3.49%
are under discussion after the company ended its talks for the purchase of Australian Crown Resorts shortly after confirming it was in negotiations. The stock fell 3.4% on Tuesday morning.
Listed Paris shares Airbus SE
AIR, -1.81%
were down 2% against the threat of US tariffs. Shares listed in the United States
EADSY, -1.74%
fell 0.7% Tuesday morning.
Avaya Holdings Corp.
AVYA, + 3.61%
after Bloomberg announced on Thursday evening (paywall) that the communications software company was organizing a sales process for the company, following the receipt of unsolicited offers. Shares rose 2.8%.
General Electric Co.
GE, -2.95%
Shares remained under pressure Tuesday, a day after J.P. Morgan's analyst, Stephen Tusa, downgraded his shares. Shares of the industrial conglomerate fell 5.1% Monday and 3.2% Tuesday morning.
Actions of American Airlines Group Inc.
ALA -3.48%
declined 1.3% after the company reduced its guidance for the first quarter.
How are other markets traded?
Asian markets ended on a mixed note, Japan's Nikkei 225
NIK + 0.19%
adding 0.2%, Hong Kong's Hang Seng Index
HSI, + 0.27%
up 0.3%, while the Shanghai Composite Index
SHCOMP, -0.16%
lost 0.2%. European stocks were slightly lower, with the Stoxx Europe 600
SXXP, -0.40%
down 0.4%.
In commodity markets, the price of oil
CLK9, -0.81%
was slightly lower, while gold futures
GCM9, + 0.42%
climbed. The US dollar
DXY, -0.15%
during this time, checked lower.
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