Published: Mon, April 09, 2018
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Dow tumbles more than 700 points amid mounting trade war fears

Dow tumbles more than 700 points amid mounting trade war fears

The Dow Jones Industrial average fell by more than 2 percent by closing bell Friday, rebounding from being down some 767 points at midday.

Earlier this week, the Trump administration announced plans for tariffs on $50 billion worth of Chinese goods in retaliation for China's alleged theft of USA intellectual property. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Caterpillar declined 1.3 percent and Deere dropped about 2 percent.

Craig Holke, investment strategy analyst for the Wells Fargo Investment Institute, said the market will continue to bounce around as investors worry about changes in trade that could slow down the global economy and company profits.

Then came a directive from the White House, asking staff to find $100 billion worth of Chinese goods to hit with tariffs. China said it would "counterattack with great strength" if that happens. But late Thursday, Trump ordered the U.S. Trade Representative to consider placing more tariffs on Chinese imports.

"The process itself seems to be quite chaotic", she said. Heating oil lost 2 cents to $1.96 a gallon. After a recent check, the 14-day RSI is now at 54.99, the 7-day stands at 66.22, and the 3-day is sitting at 78.29.

Health care companies also declined. Retailers say rising prices for imports would hurt vulnerable consumers, while major USA industrial and agricultural exporters fear losing crucial business in China.

Nonfarm payrolls increased by 103,000 last month, the Labor Department said, the fewest in six months and lower than economists' forecast of 193,000 jobs. China is the second largest importer of United States oil, after Canada.

Wary investors are holding out hope that the two sides will reach a deal before the trade barriers go into effect.

Bond prices rose, sending yields lower.

April 5 is a positive day so far for Horizons S&P 500 Covered Call ETF (NYSEARCA:HSPX) as the ETF is active during the day after gaining 1.6% to hit $48.9 per share.

Automakers Ford, General Motors, Fiat Chrysler and Tesla fell between 2 percent and 4 percent. The lower yields mean banks can't make as much money from lending, and that send bank stocks lower.

Shares of Facebook also rose, adding 1.7%. Copper fell 2 cents to $3.06 a pound.

On the currency front, the USA dollar is trading at 107.07 yen compared to the 106.78 yen it fetched at the close of NY trading on Wednesday. The Philadelphia semiconductor index fell 0.54 percent. The Williams %R oscillates in a range from 0 to -100.

Gold futures ( edged higher, up 0.5% to $1,335 an ounce.

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