Tags: wall street | dow | stock | market | amazon

Dow Drops 200 as Amazon, Intel Tumble Amid Trade Worries

Dow Drops 200 as Amazon, Intel Tumble Amid Trade Worries
(Tearswept/Dreamstime)

Thursday, 21 June 2018 04:02 PM

U.S. stocks fell on Thursday, with the Dow marking an eighth straight decline, as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a U.S. Supreme Court ruling on state sales tax collection.

Amazon dropped as much as 1.9 percent after the ruling, which allows states to force online retailers to collect sales taxes, before paring losses to trade down 0.9 percent. Wayfair lost 0.7 percent, Overstock.com tumbled 6.5 percent, Etsy declined 1.0 and Ebay dropped 3.2 percent.

"You have seen the tug of war as far as investors are concerned with the trading ranges since the announcement, it would appear it is still to be determined the absolute level of ramifications," said Eric Wiegand, senior portfolio manager at U.S. Bank Private Wealth Management in New York.

Intel also weighed heavily on the S&P 500, down 2.0 percent after Chief Executive Officer Brian Krzanich resigned following a probe that revealed a past consensual relationship with an employee violated company policy.

Big U.S. manufacturers and automakers were under pressure after Germany's Daimler cut its 2018 profit forecast and BMW said it was looking at "strategic options" because of a trade war between the U.S. and China.

Caterpillar lost 2.19 percent and Boeing declined 1.4 percent, with the S&P industrials off 1.00 percent and on track for their seventh fall in eight sessions.

"Our feeling had been there is some complacency built in to that expectation that it is more ploy than policy. But one of the first cracks in that argument right now is the Daimler announcement," said Weigand.

The Dow Jones Industrial Average fell 196.1 points, or 0.8 percent, to 24,461.7, the S&P 500 lost 17.56 points, or 0.63 percent, to 2,749.76 and the Nasdaq Composite dropped 68.56 points, or 0.88 percent, to 7,712.95.

The price-weighted Dow index is heavily affected by industrial companies and trade concerns pushed the index into negative territory for the year earlier this week, with the index posting its eight straight decline.

Ford fell 1.60 percent, General Motors dropped 2.06 percent and Tesla declined 3.75 percent. The S&P 500 automobiles and components index slumped 1.77percent.

Energy was the worst performing sector, down 1.86 percent as oil prices fell ahead of a meeting of the Organization of the Petroleum Exporting Countries, where producers are expected to boost output.

Earnings were a bright spot, with Darden Restaurants surging 14.64 percent and grocer Kroger jumping 9.74 percent after issuing strong quarterly results.

Declining issues outnumbered advancing ones on the NYSE by a 2.07-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favored decliners.

The S&P 500 posted 24 new 52-week highs and 9 new lows; the Nasdaq Composite recorded 118 new highs and 33 new lows. 

© 2019 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
StreetTalk
U.S. stocks fell on Thursday, with the Dow marking an eighth straight decline, as industrials wobbled again on trade war concerns while Amazon and other online retailers weakened after a U.S. Supreme Court ruling on state sales tax collection.
wall street, dow, stock, market, amazon
452
2018-02-21
Thursday, 21 June 2018 04:02 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved