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Stocks down 1% as Trump suggests trade deal could wait

|By:, SA News Editor

Stocks skid at the open after Pres. Trump said at the NATO summit that it might be better to wait until after the 2020 election to complete a trade deal with China; Dow -1.2%, S&P -1.3%, Nasdaq -1.4%.

Also, the U.S. and France appear headed for a tariff dispute over France's new digital tax law that the U.S. Trade Representative says discriminates against U.S. tech companies.

Trump announced yesterday that the U.S. would restore steel and aluminum tariffs on imports from Brazil and Argentina.

Losses today would add to yesterday's steep decline, as the S&P 500's 0.9% drop was the index's worst showing since early October.

European bourses trade mostly lower, with U.K.'s FTSE -1.8% and France's CAC -1.2% but Germany's DAX flat; in Asia, Japan's Nikkei -0.6% and China's Shanghai Composite +0.3%.

In the U.S., an early look at the S&P 500 sectors shows information technology (-1.5%), financials (-1.4%) and industrials (-1.2%) leading the retreat, with the rate-sensitive utilities (+0.4%) and real estate (+0.2%) sectors rising.

Among individual names, Caterpillar -2.9%, Apple -2.8%, Intel -2.8%, 3M -2%.

U.S. Treasury prices are higher, lifting the two-year yield up 7 bps to 1.55% and the 10-year yield 8 bps higher to 1.76%; U.S. Dollar Index -0.1% to 97.75.

WTI January crude oil -0.1% to $55.87/bbl.

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