Dow reverses after new tariffs announced | Retail stocks tank on trade escalation

THU, AUG 01, 2019

EVENING BRIEF

AS OF THU, AUG 01, 2019 • 04:00 ET

DJIA		26581.45
		-1.05%	-282.82

S&P 500		2953.57
		-0.90%	-26.81

NASDAQ		8111.12
		-0.79%	-64.30

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	208.43	-4.61	-2.16%
PFE	38.25	-0.23	-0.60%
MSFT	138.06	+1.79	+1.31%

S&P 500
NAME	LAST	CHG	%CHG
GE	10.08	-0.37	-3.57%
AMD	29.86	-0.59	-1.94%
BAC	29.48	-1.20	-3.91%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	29.86	-0.59	-1.94%
AAPL	208.43	-4.61	-2.16%
MSFT	138.06	+1.79	+1.31%

EDITOR'S NOTE

What a day. The Dow was up 300 points — then with one tweet from the president announcing fresh tariffs on Chinese imports, it fell right back down.

President Donald Trump abruptly ratcheted up the trade war with China on Thursday by announcing 10% tariffs on an additional $300 billion worth of Chinese goods, effective Sept. 1. Shares of retailers tanked as they are seen as the biggest target in the new round of China tariffs, CNBC's Yun Li reports.

Best Buy, Office Depot and Abercrombie & Fitch all plunged about 10% after the news while the SPDR S&P Retail ETF dropped more than 3%, on pace for its worst day since May.

Goldman Sachs analyst Christopher Prykull told clients in May that major consumer categories impacted by the final round of tariffs include consumer electronics, apparel, footwear and toys. The bank had given a 30% chance at the time that the last round of tariffs would be implemented.

Quincy Krosby, chief market strategist at Prudential Financial, said trade has always been a key issue hanging over the market, and whether or not we see an escalation. "The fact is we'll surely get a reaction from Beijing," Krosby told CNBC's Fred Imbert.

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