The worst days for the Dow

By May 13, 2019Bitcoin Business
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The Dow came very close to falling 600 points this morning.

For reference, here are the worst days for the Dow, measured by points:

But the Dow is only down 2%. Measured by percentage, today’s drop does not register on the top 50 worst days of all time.

Every Dow stock is in the red

From CNN Business' Anneken Tappe

About an hour into the trading day, things aren't looking great.

The Dow is off by more than 500 points, or more than 2%. The S&P 500 and the Nasdaq are down 2.1% and 2.7%, respectively.

Not a single Dow component is in positive territory.

In the S&P, 24 companies are defending their gains amid the trade war-driven market selloff. Storage business Public Storage (PSA), miner Newmont Goldcorp (NEM) and utility American Water Works (AWK) are leading gainers.

Bitcoin is one thing that isn't plunging today

From CNN Business' Anneken Tappe

While stocks are headed lower across the world, Bitcoin headed higher.

The cryptocurrency even breached the $7,500 level at one point, which it hadn't touched since August 2018.

With no major news factors behind the aggressive appreciation, the sharp $1000 jump over the weekend remains a mystery to investors. Although such explosive moves are nothing new in the volatile world of cryptocurrency, there is the coincidental view that the rally in Bitcoin has come around the same time as heightened US-China trade tensions have eroded risk sentiment," said Lukman Otunuga, research analyst at FXTM.

Still, it was too early to tell whether Bitcoin had re-established itself as a safe-haven asset, Otunuga cautioned.

Bitcoin is up more than 90% this year, according to Refinitiv.

Read more about whether Bitcoin Is the new buy and hold asset.

SoftBank slammed by Uber flop and US-China trade tension

Japanese tech investing giant SoftBank is getting hit hard by Uber's IPO flop and the growing trade war with China.

SoftBank is the biggest investor in Uber (UBER). It owns nearly 13% of the company through its SoftBank Vision Fund. The value of that stake has plunged nearly 16% since Uber went public Friday.

Making matters worse for SoftBank? It is also the largest shareholder in Chinese e-commerce giant Alibaba (BABA). And that stock was down more than 3% Monday after the US and China each slapped a new round of tariffs on one another.

SoftBank shares fell more than 3% in Tokyo Monday before Wall Street opened. But based on how poorly Uber and the broader market are doing so far today, expect another big drop for Masayoshi Son's company on Tuesday.

Stocks open sharply lower after China retaliates with additional tariffs

From CNN Business' Anneken Tappe

US stocks started the week sharply lower as trade tensions between the United States and China escalated further.

Beijing announced this morning it would raise tariffs on $60 billion of US imports to 25% in retaliation to Washington ratcheting up tariffs from 10% to 25% on $200 billion imports.

All three indexes dropped last week, with the S&P and the Nasdaq recording their worst weekly losses since December. The Dow had its worst week since March.

The only Dow component in the green this morning is Verizon (VZ), up 0.2%.

Apple (AAPL), Caterpillar (CAT) and Boeing (BA), which have been particularly sensitive to the trade headlines, are leading decliners in the Dow.

Dow futures are sharply lower after China retaliates with higher tariffs

From CNN Business' Anneken Tappe

Dow futures are sharply lower on Monday after China said it will raise tariffs in retaliation for last week's tariff increase by the United States.

China hiked tariffs on $60 billion of imports from the United States. It first imposed the tariffs last year.

Worries over the escalation of the trade spat with China just aren't going away.

Stock futures are sharply down, falling some 2% across the board for the Dow, S&P 500 and Nasdaq. Dow futures were more than 400 points lower.

Read the full story of how the trade war is affecting stocks today here.

Fact check: Trump's claim that US GDP was 'greatly helped' by tariffs

From Lydia DePIllis

President Trump's statement that tariffs on China were one of the reasons for the robust 3.2% GDP number for the first quarter is only half right.

GDP growth was driven in part by a big drop in imports, following a surge of imports last year as companies attempted to stock up in advance of tariff deadlines. Usually, imports weigh negatively on GDP, while exports increase it.

A drop in imports from China was a large factor in the first quarter economic growth. But exports to China also declined. The US sells way less to China than it buys from them.

However, a drop in imports isn't always a good thing, since many imports are used to produce things in America that are then re-exported. Also, tariffs impact the economy in multiple ways, including consumer prices -- which have climbed substantially on goods subject to new tariffs -- and disruptions to supply chains.

Cumulatively, economists estimate that the tariffs have had a slight negative impact on growth so far, and that impact will increase significantly over the next year if the new 25% tariffs on $200 billion in Chinese imports are not removed.

Companies themselves say that tariffs have been bad for business. Manufacturing purchasing managers indices and hiring have been down since the middle of last year. In the April NABE survey, 75% of economists at goods-producing businesses said the trade war had been a drag on growth.

China announces it will raise tariffs on US imports

From CNN Business' Lily Lee

China has announced it will raise tariffs on $60 billion worth of imported goods from the United States.

The tariffs will go into effect at midnight Beijing time on June 1, according to China’s State Council Customs Tariff Commission.

Beijing's action comes in retaliation. Last Friday, the United States raised tariffs on some $200 billion Chinese imports from 10% to 25% after trade talks held in Washington failed to produce a breakthrough.

Oil prices rise nearly 2% after Saudi Arabia reports tanker attacks

From CNN Business' Zahraa Alkhalisi

Oil prices are rising as escalating tensions in the Middle East stoke fears about a global supply crunch.

Brent crude futures — the global benchmark — gained about 1.9% on Monday to trade at $71.75 a barrel. US crude oil futures gained about 1.6% to $62.48.

Saudi Arabia said two of its oil tankers had been sabotaged off the coast of the United Arab Emirates, in attacks it said posed a threat to shipping and the security of global oil supplies.

Read the full story on what drives oil prices today here.

For reference, here are the worst days for the Dow, measured by points:

But the Dow is only down 2%. […]

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