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Overnight Markets: Dow falls amid lingering trade-war concerns

Overnight Markets: Dow falls amid lingering trade-war concerns

by Himanshu Singh Mar 13, 2018 at 02:26

The Dow Jones industrial average fell on Monday, snapping a two-session winning streak, as shares of industrial giants were weighed down by tariffs signed into law last week by President Donald Trump.

The Dow Jones Industrial Average fell 157 points, or 0.62%, to 25,179, the S&P 500 lost four points, or 0.13%, to 2,783 and the Nasdaq Composite added 28 points, or 0.36%, to 7,588.

Boeing, Caterpillar and United Technologies all fell at least 2%. The Dow rose more than 100 points earlier in the session as shares of Apple and Goldman Sachs reached all-time highs. Amazon also hit an all-time high to help lead the gains.

Trump implemented a 25% tariff on steel imports and a 10% charge on aluminum imports. However, Canada and Mexico - two key US trade partners - were excluded from the tariffs. But investors worried that other countries could retaliate by imposing tariffs on US goods.

In corporate news, David Solomon will take over as president and COO at Goldman Sachs after Harvey Schwartz, his sole competitor for the CEO position, retires next month. Goldman shares rose as much as 1.7% before closing 1% higher.

Longtime Dow Chemical Co. leader Andrew Liveris plans to step down next month. Co-lead director Jeff Fettig will assume the executive chairman role at the company, now known as DowDuPont Inc. and soon to be broken apart. Shares of the DowDuPont were down 1.2%.

Biogen Inc. said it reached a deal to buy a phase-2b-trial-ready schizophrenia treatment from Pfizer Inc. for up to $590 million. Shares of Biogen were down 2.2% while Pfizer fell 0.4%.

Shares of Broadcom Ltd. rose 3.6% after the Singapore-based semiconductor company said it expects to complete its relocation to the US by 3 April.

In Asia, share markets traded mixed on Tuesday after Wall Street gave up gains as investors fear Trump's tariffs on steel and aluminum imports could trigger a trade war.

Australian shares eased 0.59%. Japan's benchmark index Nikkei 225 slipped 0.22%. South Korea's Kospi index was up 0.04%. Over in Hong Kong, the Hang Seng Index was 0.24%. Mainland markets were in the green, with the Shanghai composite inching up 0.13%.


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