Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Stocks Dive on China, Brexit Worries, Manufacturing Weakness

Stock MarketsSep 03, 2019 05:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. - Stocks started September with another round of nasty volatility.

The S&P 500 fell 0.69% on Tuesday. The Dow Jones industrials dropped 1.08%. And the Nasdaq Composite was off 1.1%.

U.S. financial markets were closed Monday for Labor Day.

There were plenty of reasons for the slump.

There was the imposition of new 15% tariffs on goods imported from China and a similar tariff imposed by China on U.S.-made imports. The two sides have mostly toned down the rhetoric, but talks expected this month have not yet been scheduled.

A weak report on U.S. manufacturing activity from the ISM dowing contraction in the sector for the first time in three years.

Concerns continued about political chaos in the United Kingdom that could affect the British and European economies. After the close of trading, Prime Minister Boris Johnson lost a vote that allows tomorrow for debate for a no-deal Brexit.

Antitrust worries increased for Alphabet (NASDAQ:GOOGL). Some 30 states are planning to join an antitrust probe of the Internet giant, the Washington Post reported Tuesday. Google shares were off about 1.7%.

And there were new worries about when Boeing will be able to get the 737 Max airliner back in the air. Boeing (NYSE:BA) was off 2.66%, the weakest Dow performer, and contributed 66 points to the Dow's 286-point loss.

Many investors coped with the volatility by seeking safe havens, especially gold and Treasury securities. Gold futures jumped $26.50 to $1,555.90 an ounce in futures trading in New York and there was talk the metal could move higher.

Some stocks held their own because of predictable cash flows and little exposure to geopolitical issues, including American Tower (NYSE:AMT) and Everest Re Group (NYSE:RE).

Among the eight Dow stocks that showed gains were Procter & Gamble (NYSE:PG), Coca-Cola (NYSE:KO) and Walmart (NYSE:WMT), all classic defensive stocks.

The 10-Year Treasury yield fell to 1.472% after hitting a two-and-a-half-year low of 1.429%.

Oil futures moved lower, with West Texas Intermediate crude falling $1.16 to $53.94 a barrel in futures trading. Brent crude, the global benchmark, was off 40 cents to $58.26 a barrel.

With Tuesday's losses, the S&P 500 is 4% from its peak in July. The Dow is off 4.67% and the Nasdaq is off 5.58%. All three indexes remain firmly in the black on the year, however.

But the averages are still below their Autumn 2018 peaks, suggesting that there are powerful resistance forces that could limit the market's gains. Fueling the resistance is the uncertainty caused by the U.S.-China trade fight as well as uncertainty in Europe over Brexit and also economic uncertainty in Latin America.

Wednesday may see some pressure from food processor Tyson Foods (NYSE:TSN), which cut full-year guidance in part because of commodity-price volatility and costs associated with enhancing food safety. Shares fell 6.2% after hours.

In addition, traders will be watching to see where Hurricane Dorian is heading and for signals on where the August jobs report will land. The report is due before Friday's open.

Kidney-dialysis-center operator DaVita HealthCare Partners (NYSE:DVA), American Tower (NYSE:AMT), reinsurance company Everest Re Group (NYSE:RE) and Nextera Energy (NYSE:NEE) were among the top S&P 500 performers Tuesday.

Alexion Pharmaceuticals (NASDAQ:ALXN), IPG Photonics (NASDAQ:IPGP), oil-and-gas producer Concho Resources (NYSE:CXO) and Westinghouse Air Brake Technologies (NYSE:WAB) were among the S&P 500's biggest laggards.

Stocks Dive on China, Brexit Worries, Manufacturing Weakness

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Hank Williams
Hank Williams Sep 03, 2019 5:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buyers buying on HOPE. Ha ha ha!
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email