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3 years agoon
Stocks fell broadly Tuesday after President Donald Trump cast doubt over the potential for a trade deal with China this year and threatened to impose tariffs on French goods.
KEEPING SCORE: The S&P 500 index was down 1% as of 1 p.m. Eastern time. The Dow fell 379 points, or 1.4%, to 27,403. The index was briefly down 457 points. The Nasdaq fell 1%. The Russell 2000 index of smaller company stocks fell 0.6%.
Asian and European markets also fell.
DECEMBER DIP? The lack of a trade deal before the year ends could mean the market is in for a turnaround from a strong, record-setting November. The S&P 500 had its best month since June with a 3.4% gain because of cooling trade tensions and optimism that a resolution to the dispute was near.
Two days of deflated hopes has already sent the S&P 500 about 2% lower and the tech-heavy Nasdaq has slipped 2.1%.
December is a typically solid month for the stock market, with the S&P 500 making gains regularly since the last recession ended in 2009. Last year, though, fears about a recession and rising interest rates hurt the major indexes.
METAL MARRIAGE: Cleveland-Cliffs plunged 12.1% after the iron-ore miner said it will pay $1.1 billion for steel maker AK Steel. U.S. steel producers have struggled since the Trump administration put a 25% steel tariff into place last year. Domestic demand has slumped as oil and gas drillers pull back on purchases of steel pipe. The price for hot rolled steel has slid almost 30% this year. AK Steel rose 4.3%.
DRESSED FOR SUCCESS: Lands’ End vaulted 18.4% after the clothing maker reported surprisingly good fourth-quarter earnings and raised its profit forecast for the year.
ECONOMIC WATCH: Wall Street still has a busy week ahead for some key economic gauges following disappointing manufacturing and construction data on Monday.
Investors will get a better view of the services sector, which makes up the bulk of the economy, with a November report on Wednesday. Economists expect a very slight drop in growth.
Employment data is also on tap this week. On Wednesday, payroll processor ADP will release its latest survey of hiring by private companies. The Labor Department will release its closely watched employment report on Friday.
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