Dow Triumphs Amid China's Tariff Retaliation

Dow Triumphs Amid China's Tariff Retaliation

Analysts had expected the markets to drop drastically after China hit back on the U.S. with a 25% tariff on 106 products.

However, investor concerns appeared to ease after Trump's top economic adviser Larry Kudlow said the administration was involved in a "negotiation" with China rather than a trade war.

The announcement by China came shortly after the US Trade Representative published a proposed list of products imported from China that could be subject to additional tariffs.

The Dow Jones industrial average fell as much as 620 points in afternoon trading Friday, its latest big swing this week.

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The turnaround was the biggest comeback for the DJIA since February 6 when it dropped by 2.33% before later gaining 2.35%.

Stocks start lower but have pared opening bell losses and nowhere near the bloodbath levels indicated by the futures markets overnight; Dow -0.4%, S&P -0.3%, Nasdaq -0.2%. (UTX) and Caterpillar, Inc.

Average hourly earnings rose eight cents or 0.3 per cent last month, above the expected 0.2 per cent increase.

The Dow fell 588 points, or 2.4 percent, at 23,909. Young said that despite corporate fundamentals remaining strong, the increasing trade tensions between two of the world's largest economies are perceived as a growing threat to corporate earnings and global growth, a move that is lowering equity valuations. This stock has been struggling since President Donald Trump suggested it doesn't pay its fair share of taxes.

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"Clearly the reaction from China to tariffs is clearly the only factor driving the markets today", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.

Investors might feel a little less anxious about a possible trade war after they've overcome Wednesday morning's panic.

Another flare-up in trade tensions between the US and China sent the stock market sharply lower for the second time this week.

China's tariffs on USA soybean exports led to bets that higher domestic reserves would lower food costs for meat producers such as Tyson Foods (Frankfurt: 870625 - news), Hormel, Sanderson Farms and Pilgrim's Pride, helping those stocks. "We can not let this continue!"

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