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US STOCKS-China's tariff blow weighs on Wall Street, Powell speech in focus

Published 23/08/2019, 14:57
Updated 23/08/2019, 15:00
© Reuters.  US STOCKS-China's tariff blow weighs on Wall Street, Powell speech in focus

© Reuters. US STOCKS-China's tariff blow weighs on Wall Street, Powell speech in focus

(For a live blog on the U.S. stock market, click LIVE/ or

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* Indexes down: Dow 0.40%, S&P 0.43%, Nasdaq 0.56%

* China unveils retaliatory tariffs on U.S. goods

* Powell's speech to start at 10:00 a.m. ET

* HP Inc (NYSE:HPQ) falls after CEO exit, disappointing forecast

* Foot Locker (NYSE:FL) slumps after quarterly results miss estimates

(Updates to open)

By Akanksha Rana and Medha Singh

Aug 23 (Reuters) - U.S. stocks fell on Friday after China

threatened to impose additional tariffs on $75 billion worth of

U.S. goods, ahead of a highly anticipated speech from Federal

Reserve Chair Jerome Powell.

China's latest tariffs, which follow U.S. duties on $300

billion worth of Chinese goods, threaten to prolong an ongoing

trade war between the world's top two economies that has raised

concerns about slowing global growth.

China's commerce ministry said it would impose additional

tariffs on thousands of U.S. products, including agricultural

products, crude oil, small aircraft and cars. Tariffs on some

products would take effect on Sept. 1 and others on Dec. 15

U.S. Treasury bond yields slid following the development,

while interest sensitive banks .SPXBK fell 0.55%.

Tariff-sensitive technology stocks .SPLRCT dropped 0.54%,

pressured by a fall in chipmakers and Apple Inc AAPL.O . The

Philadelphia chip index .SOX slid 1.62%.

"Of course China is going to retaliate. That is part of the

trade war," said Scott Brown, chief economist at Raymond James,

in St. Petersburg, Florida.

"Trade issues are going to be important heading into the

Powell speech and he has to give some indication on how the

global environment is influencing the Fed."

Powell speaks at 10 a.m. ET (1400 GMT) in Jackson Hole and

investors will be looking for confirmation that the central bank

will cut interest rate next month to sustain a decade long bull

run for Wall Street.

At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was

down 103.97 points, or 0.40%, at 26,148.27, the S&P 500 .SPX

was down 12.45 points, or 0.43%, at 2,910.50. The Nasdaq

Composite .IXIC was down 45.05 points, or 0.56%, at 7,946.34.

Energy sector .SPNY dropped 1.20%, the most among the S&P

sectors, as oil prices fell.

Defensive plays were in favor as utilities .SPLRCU was the

only major S&P higher, while and real estate .SPLRCR and

consumer staples .SPLRCS posted the smallest losses.

HP Inc HPQ.N slipped 6.8% after Chief Executive Officer

Dion Weisler stepped down and the PC maker forecast

fourth-quarter profit below analysts' estimates. The biggest gainer on the S&P was Salesforce.com Inc (NYSE:CRM) CRM.N

up 5.6%, after the cloud-based service provider forecast

third-quarter and full-year revenue above Wall Street estimates.

Declining issues outnumbered advancers for a 2.68-to-1 ratio

on the NYSE and for a 2.39-to-1 ratio on the Nasdaq.

The S&P index recorded 21 new 52-week highs and 13 new lows,

while the Nasdaq recorded 11 new highs and 41 new lows.

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