Dow loses 400 points after Trump advisors contradict each other at the same time

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The Dow Jones lost 400 points, or 1.6%, on Friday afternoon. The Nasdaq lost 2%, while the S & P 500 fell 1.5%.

Stocks traded higher earlier on Friday, but the market fell sharply as a result of conflicting messages from the Trump administration about trade.

While White House economic adviser Larry Kudlow gave an optimistic note on CNBC's China talks, trade adviser Peter Navarro warned CNN simultaneously of higher tariffs if the problems were not met. Were not resolved during the 90-day trading period.

"We have received a mix of conflicting messages from people belonging to the same government," said Art Hogan, chief market strategist at B. Riley FBR. "We do not know who we are supposed to listen to."

The concern over the negative consequences of the trade war and the hopes of progress prompted Wall Street in a frantic race. The US-China ceasefire boosted inventories on Monday. Doubts about the truce allowed the Dow to lose nearly 800 points in the red on Tuesday. And then the Dow Jones fell 785 points Thursday before organizing a huge comeback.
Why the stock market freaks out

alternated between good and bad cop at the commercial level .

Kudlow told CNBC on Friday that trade talks with China were "extremely promising".

Kudlow, director of Trump's National Economic Council, said that he had indicated that he would be willing to extend the 90-day trading deadline if there is "good, solid move and good action" .

Navarro, the White House Hawker for Commerce, gave a different tone to CNN. Asked that the administration would step down if the problems with China are not resolved within 90 days, Navarro suggested that Mr. Trump would simply increase existing tariffs on Chinese products worth 200 billions of dollars.

If China does not change its business practices, "we have a president who will resist this for once," said Navarro.

Navarro also defended the $ 12 billion that the United States raised through tariffs, although this money is mostly paid for by consumers and businesses in the United States.

Comments have not lifted the uncertainty of Wall Street. Trade-sensitive stocks, including Apple (AAPL), Boeing (BA) and Caterpillar (CAT) fell by more than 2%.

"We continue to receive conflicting reports of these types," said Joe Saluzzi, co-head of trading activities at Themis Trading. "The markets are confused."

Trump himself added to the confusion. While Trump expressed the wish to make an agreement with China, the president also alarmed some investors by calling himself "tariff man" on Twitter on Tuesday. This tweet was blamed for helping to plunge the market.

Still, on Thursday night, Trump said on Twitter that he was in agreement with a recent encouraging statement from China expressing its confidence in a trade deal within 90 days.

"Today is a microcosm of what we have known all week: conflicting messages," Hogan said. "Every message is contradicted."

Hogan pointed out the confusion surrounding a central issue: the beginning of the 90-day deadline for negotiations. At first, Kudlow suggested that the period begin on January 1st. The White House then corrected Kudlow to say that 90 days began at the dinner date, December 1st.
The stock market would fall further on Friday if it was not the case. for a rally in the energy sector. Oil stocks such as EOG Resources (EOG) and Anadarko Petroleum (APC) were the subject of an upward bid after OPEC and its allies reached an agreement to reduce oil prices. significantly their production. The price of American oil has risen 4% on news.
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