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NEW YORK – Global equities suffered small losses Monday after China withdrew from trade talks with the United States. Industrial companies and banks suffered the worst declines among US stocks.
The United States and China have officially started taxing larger amounts of their products on Monday, and the Wall Street Journal reported that China had withdrawn from negotiations that could have led to a new round of negotiations for put an end to the trade war.
The United States is now charging $ 200 billion more for Chinese imports at a rate of 10 percent and China has added taxes of 5 to 10 percent on $ 60 billion worth of US products. Among industrial companies, considered particularly vulnerable to tariffs, General Electric fell by 3.5%, while 3M fell by 1.3%.
Gains in other sectors offset some of the trade-related sales, leaving the US indexes slightly lower.
Oil prices jumped after OPEC decided not to produce more oil and gave a boost to the shares of big oil companies such as Exxon and Chevron. Technology and health care companies have also grown.
The trade dispute between the United States and China contributed to the volatility of some trading sessions earlier this year. Recently, investors have taken matters into their own hands. The S & P 500 has not increased or decreased by 1% in a day since the end of June.
"The market has been remarkably resilient over the last two months, as trade tensions have intensified," said Terry Sandven, chief equity strategist at US Bank Wealth Management.
Sandven said the trade dispute would last after the mid-term elections in November, but stocks should continue to rise due to strong earnings growth of US companies, combined with low inflation and low interest rates. low interest.
The S & P 500 index fell 10.30 points, or 0.4%, to 2,919.37. The Dow Jones Industrial Average lost 181.45 points, or 0.7%, to 26,562.05. The S & P 500 and the Dow both peaked last week.
The Russell 2000 Small Business Equity Index fell 7 points, or 0.4%, to 1,705.32. The Nasdaq composite gained 6.29 points, or 0.1%, at 7,993.25.
Sandven noted that this year's inventory gains have been concentrated in technology, retail and healthcare companies. That was the case Monday, Apple having gained 1.4% to $ 220.79 and Abbott Laboratories drug and infant formula manufacturer advanced 3.5% to $ 71.44.
US investors were busy with other news. The OPEC and its main allies like Russia have decided not to increase their oil production. Production is down in some OPEC countries, including Iran, which faces new sanctions from the United States.
US crude gained 1.8% to $ 72.08 a barrel in New York, while Brent crude, the international standard for oil prices, rose 3% to $ 81.20 a barrel in London, its highest level for more than three years.
Airlines and other transportation companies fell as investors expected to pay higher prices for fuel.
Investors also weighed a bargain deal.
Last Friday, Comcast won an auction for the controlling majority of the British giant Sky satellite television, topping an offer from Twenty-First Century Fox. In London, Sky shares jumped 8.6%. Comcast fell 6% to $ 35.63, while Fox rose 1.5% to $ 45.01.
Disney, which buys Fox, has climbed 2.1 percent to 112.77 dollars.
Barrick Gold will buy competitor Randgold Resources for $ 6.1 billion in shares. The merged company will combine Randgold's African mines with Barrick's interests in the Americas to form the world's largest gold digger.
Barrick rose 5.4% to $ 11.04 and Randgold gained 6.6% to $ 68.14.
The Sirius XM subscription radio company said that it was buying the Pandora Media music streaming service. The agreement will extend Sirius service beyond cars and into homes and other areas. The companies valued the transaction at about $ 3.5 billion in stock.
Sirius sank 10.3% to $ 6.26 and Pandora slid 1.2% to $ 8.98.
An Italian newspaper reported that the Versace group was about to announce its acquisition, and Bloomberg and Reuters reported that luxury fashion and handbag manufacturer Michael Kors was the buyer. The Italian publication, Corriere della Sera, said the deal was worth 2 billion euros (2.4 billion dollars).
The title of Michael Kors slipped 8.2% to $ 66.71.
Markets in Europe declined slightly while Asian indices posted higher losses. The German DAX fell by 0.6% and the CAC 40 in France by 0.3%. The FTSE 100 in Great Britain dropped 0.4%. The Hang Seng Hong Kong index fell 1.6% and India 1.5%. Markets in Japan and South Korea have been closed for national holidays.
Marijuana-related companies have once again made spectacular moves. Intrexon, a biotech company, recorded a strong 31.5% increase to $ 19.07 after reporting a yeast strain to produce marijuana chemicals consistently and at low cost. Scientists say that this has been a problem in the search for the drug.
Canadian medical marijuana company Tilray sank 19.1% to $ 99.50, its third big loss in a row. Before that, the value of the stock had almost tripled in a week and a half.
Bond prices have fallen. The 10-year Treasury bond yield went from 3.06% to 3.08%.
In other commodity trade, wholesale gasoline rose 1.9% to $ 2.05 a gallon. Heating oil added 2.7% to 2.29 dollars a gallon. Natural gas gained 2% to $ 3.04 per 1,000 cubic feet.
Gold added 0.3% to $ 1,204.40 an ounce. Silver lost 0.1% to $ 14.34 an ounce. Copper fell 0.8% to 2.84 dollars a pound.
The dollar rose from 112.52 yen to 112.73 yen. The euro rose slightly to 1.1758 dollar against 1.1747 dollar.
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Marley Jay, editor of AP Markets, can be reached at http://twitter.com/MarleyJayAP. His work is available at https://apnews.com/search/marley%20jay
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