Global Stocks Drop Amid Concerns About Turkey

Postado Agosto 12, 2018

With the second-quarter USA earnings season mostly over, investors are turning their attention from solid economic growth and corporate profits to other risks, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

Bookings Holdings fell 5.9 percent and weighed the most on the S&P and the Nasdaq after it forecast third-quarter profit below expectations.

The Russell 2000 index of smaller-company stocks picked up 4.01 points, or 0.2 percent, to 1,690.89.

The slide followed a tweet from US President Donald Trump announcing he was doubling US tariffs on Turkish steel and aluminium.

"Today's impact has set the markets in a temporary risk-off sentiment", said Matt Forester, chief investment officer of BNY Mellon's Lockwood Advisors. You worry about the effects on Europe.

Rite Aid RAD.N fell 11.5 percent after the drug store chain and US grocer Albertsons Cos ABS.N agreed to terminate their merger agreement.

At 9:48 a.m. EDT the Dow Jones Industrial Average was down 158.88 points, or 0.62 percent, at 25,350.35, the S&P 500 was down 13.35 points, or 0.47 percent, at 2,840.23 and the Nasdaq Composite was down 31.69 points, or 0.40 percent, at 7,860.09.

The S&P financial index fell 1.4 percent, among the biggest drags on the S&P 500.

Shares of trade-sensitive companies also declined, including Boeing, 3M and Caterpillar, which were all down at least 1.4 percent.

Tesla shares ended up 0.9 per cent.

Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favoured decliners.

The tech-heavy index .IXIC was up 0.31 percent at 7,913.03, barely 0.25 percent away from hitting an all-time high.

Oil prices were down slightly as the escalating China-U.S. trade dispute cast doubt on the outlook for crude demand. That compares with the 6.4 billion-share daily average for the past 20 trading days, according to Thomson Reuters data.