Stocks plunge after China retaliates in trade war

[TomCADem]

Source: CNBC

Stocks fell sharply Monday as a trade war between the world’s largest economies intensified, with China retaliating against the United States' latest move.

The Dow plunged 600 points, while the S&P 500 sank 2.3% and the Nasdaq sank 3%. The three indexes were on pace to post their biggest-one day loss since May 13. The Nasdaq was on track to fall for a sixth straight session, which would be its longest losing streak since late 2016. The S&P 500 headed for a six-day losing streak as well. The major indexes have also fallen more than 5% from their record highs set last month.

Trade bellwethers Caterpillar and Boeing dropped 2.2% and 2.3%, respectively. Semiconductor stocks liked Micron Technology, Skyworks Solutions and Advanced Micro Devices fell at least 2.8%.

Apple shares slid 4%. Nike dropped 2%. Retail stocks like Etsy, Abercrombie & Fitch and Stitch Fix all fell at least 4.3%. Office Depot slid 9.3%. Party City fell 7.2%. Macy’s and Best Buy slid 6% and 5.2%, respectively. The SPDR S&P Retail ETF (XRT) traded 3% lower. FedEx dropped 4.5%

Read more: https://www.msn.com/en-us/money/markets/stocks-plunge-after-china-retaliates-in-trade-war/ar-AAFlytq?ocid=spartandhp

[ProudMNDemocrat]

1. Trump is out to destroy the Economy...

And then lay the blame on Democrats for it.

Just you watch.

[olddad65]

7. correction: RUSSIA is out to destroy our economy....

Trump is just Putin's useful idiot, His job is to keep the focus on himself, so people don't realize that RUSSIA is at war with us. And they are wining.

JUST ANOTHER DAY IN AMERUSSIA!!!

[ProudMNDemocrat]

12. That too.

Hillary Clinton tried to warn us. We listened. 63 million did not.

[notdarkyet]

27. I've thought so for a long time. Trumps trying to pocket as much as he can before it crashes.

Not the sm, the whole economy. Tariffs etc.

[KPN]

14. No. I think he is stoking a cold war with China to gain political leverage and stiffen up his

support pre-2020. He thinks this along with the deplorable base will win for him. But wait, there's more: Iran is next.

[olddad65]

20. The Russian interference in the 2020 election will 'win' it for Putin, again.

[John Fante]

26. No, it will not.

WE will win.

[gohuskies]

2. We are all tired of Trump's 'Winning'

Hell bent on taking us into the abyss with his elementary grasp of world economics, what a stupid jerk...

[Traildogbob]

9. The Party of Death

Maybe destroying the cash flow to billionaires will have the GOP take a step to cut ties. Murder doesn't affect them. Everything the GOP does ends up with dead Americans. War, poisoned environment, unlimited guns, no health care, no Social Security, poison food, unchecked police killings. I could go on. How many American lives lost from Veitnam and wars forward. Then add up the deaths from guns on our soil since Nam. GOP is responsible for millions of dead American. Tell me why they are not the Party of Death. Pro life?????

[OnlinePoker]

3. Hmmm...I seem to recall someone saying "Trade wars are good and easy to win". n/t

[TomCADem]

6. Before Making Fun of Trump, Some Folks Like Bernie Sanders Want to Go Further...

Is the question whether Trump has gone far enough in this trade dispute. Are his tariffs too low? Here's Bernie's statements on the current dispute from his website:

https://feelthebern.org/bernie-sanders-on-china/

In response to the trade imbalance and currency manipulation, the current administration has started a trade war with China. In addition, President Trump issued an executive order that declared a national emergency over Chinese threats against US technology and added Huawei Technologies, one of China’s largest companies, to the Bureau of Industry and Security (BIS) Entity List, which makes it more difficult for Huawei to do business with U.S. companies. The ongoing trade dispute with China has disturbed the markets and will likely fail to reduce U.S. trade deficits with China or stop the currency manipulation. Instead, tariffs may make things worse. The trade dispute will hurt American families and likely cost American jobs.

Bernie does not disagree with the tough approach to China, just the way it’s being done by the administration.


* * *

In 1993, Bernie voted in the House against granting China “Most Favored Nation” status. In 2000, Bernie voted against Permanent Normal Trade Relations.

Bernie lists Ten Fair Ways to Reduce the Deficit and Create Jobs, among them is stopping China’s currency manipulation.

In a 2015 editorial, Bernie wrote, “our overall trade policy must also change for corporations to start investing in America and creating jobs here again, and not just in China and other low wage countries.”

Bernie’s Agenda for America calls for ending free trade policies. Instead of passing such trade deals, Bernie argues we must “develop trade policies which demand that American corporations create jobs here, and not abroad.”

[KPN]

15. Schuler said about the same the other day. It's not that we don't need to deal with the

current trade inequities with China, but that how we do it shouldn't be half-cocked -- and that's all tRump knows and can be -- half-cocked.

He doesn't have a fucking clue what he's doing and relies simply on what has worked for him throughout his life -- bluster and bully with the backing of Daddy's or someone else's money -- in this case every Americans'.

[SpankMe]

4. The economy is not the stock market, and the stock market is not the economy. n/t

[crazytown]

5. And Lehmann was not the stock market

but there it is.

[KPN]

16. Tell that to most of our elected federal officials over the past couple of decades.

[stopdiggin]

30. but real people get hurt

We're heard this mantra for years. While technically true (and I'll grant benefit of the doubt in your motives) .. substantively, it's an inanity. The strong inference is that there is little connection (and besides, "real" people are more effected by the economy, so really don't have to be as concerned ..) which is bollocks start to finish. Try running that line by a schoolteacher whose retirement just went up in smoke.

[IronLionZion]

8. This is all a pump and dump scheme

Pressure the Fed to cut rates, get corporations to buy back shares to inflate stock prices, so insiders can sell high.

Then tweet out some trade war tariffs knowing stock prices will dip lower. We're all being taken for a ride.

They're expecting this house of cards to fall on the next presidential administration, which will likely be Democratic.

[old guy]

11. This!

[KPN]

19. There is some substantive truth to this imo, though tRump also thinks and does things

half-cocked without any real clues as to how they'll ultimately work out. .... But yeah, no question in my mind that he has been manipulating the markets and coordinating with "friends" and family to reap benefit for himself and them (though in his mind the benefits all are ultimately his since he makes the world turn and the sun come up each day).

I also think the corporate tax cuts were made knowing full well that corporations would simply buy back shares to pump up prices ... and we are seeing them reap the gains this past week as well as other down cycles that happen every 4-6 months or so since he was elected. These people (his "friends&quot aren't stupid and know/knew how to manipulate him as well as Moscow Mitch and Paul Ryan (at the time of the tax cuts) and most of the rest of the GOP.

And yes, it will all come crumbling down -- at which point we'll have a Democrat about to take office in the WH. And the cycle will repeat with Democrats holding the lousy economy/massive deficit bag once again.

It's rinse and repeat, rinse and repeat. When will the average American voter wake the fuck up?! Probably never since most of them can't afford to save and invest in the stock market and therefore never read or pay attention to the financial news. They just know that they don't have enough money because of, well to keep it short, gub'mint!

[IronLionZion]

21. Most of the stock market increase was in 2017, before his tax cuts

Companies absolutely used their tax cuts for buybacks. And many of their executives promptly sold high. We've had volatility ever since.

The Fed capitulating to this president by lowering rates just encouraged him to announce more tariffs. They're expecting the lower stock prices will cause the Fed to lower rates more to stimulate it, and the cycle continues. The Fed won't have much to work with in the next recession. This is a dangerous game.

Somewhere a Republican voter who doesn't own stocks is thinking poor people on welfare are taking his tax dollars.

[KPN]

22. Absolutely. It was euphoria and buying the rumors during that period (2017).

Agree with everything you said -- although for some reason a lot of economists are second guessing past dogma; specifically, what goes up must come down. I don't get that. It is dangerous ... and I actually fear for my financial security after being retired 6 years. I made my decision to retire only after extremely detailed figuring, refiguring and re-reiguring several times more just to be sure before feeling finally 100% secure in my decision. .... Since tRump, I'm not so sure. Thinking of putting all our money in money markets.

[Grasswire2]

10. He's likely making a fortune shorting. nt

[RainCaster]

13. DFT's Dunning-Kruger strategy in this trade war will hurt his biggest champions

Yeah!

[Yo_Mama_Been_Loggin]

17. Stable genius in action

Smartest ass in the whole barnyard.

[mahatmakanejeeves]

18. Dow plunges 600 points after China devalues its currency

Dow plunges 600 points after China devalues its currency

By Anneken Tappe, CNN Business

Updated 11:02 AM ET, Mon August 5, 2019

New York (CNN Business) -- The Dow tumbled more than 600 points and global stocks were in disarray on Monday after China escalated the trade war with the United States.

The Chinese government devalued the yuan to fall below its 7-to-1 ratio with the US dollar for the first time in a decade Monday. A weaker currency could soften the blow the United States has dealt China with its tariffs.

The cheaper yuan ignited fear on Wall Street that the United States would respond with even higher tariffs, prolonging the standoff with China and potentially weakening the global economy. Investors are particularly concerned that the Trump administration could try to devalue the dollar, sparking a currency war that could weaken Americans' purchasing power.
....

[keithbvadu2]

23. Take that, China!

Take that, China!

[disndat]

25. the U.S. farmers aren't hurting

Trump compensated the framers for the loss with $$$ Billion of Taxpayers money.

[NickB79]

29. Most of those billions went to corporate farms

The majority of farmers aren't getting more than a token payout from Trump's ag bailout. Even if the payouts were evenly distributed, they wouldn't make up for the losses incurred. We're talking about waaaaay more than the $20 billion doled out so far.

There will be a lot of farms going bankrupt soon.

[NurseJackie]

24. Putin cheers!

So much winning!

Yes... I'M TIRED OF WINNING... he was right! Make it stop!

[NoMoreRepugs]

28. The Great Negotiator strikes again.

My tinfoil hat theory is that the current trade war with China makes it almost certain there will be Chinese social media participation in the 2020 election to counter Puties boys helping the Orange Douche.