US STOCKS-Wall St on track to snap 4-day rally; latest trade threat weighs

Reuters

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    * US proposes fresh tariffs on $200 bln worth of China goods
    * Boeing, Caterpillar lead decliners on Dow 
    * Chipmakers slide
    * Indexes down: Dow 0.8 pct, S&P 0.6 pct, Nasdaq 0.4 pct 

 (Updates to late afternoon)
    By Caroline Valetkevitch
    NEW YORK, July 11 (Reuters) - U.S. stocks looked set on
Wednesday to snap a four-day winning streak after Washington's
threat to impose tariffs on an additional $200 billion worth of
Chinese goods fanned trade war fears, while a sharp drop in oil
prices hit energy.
    China responded to U.S. President Donald Trump's threats by
accusing the United States of bullying and warned that it would
hit back.  urn:newsml:reuters.com:*:nL4N1U71IM
    Industrial names including Boeing  BA.N , 3M  MMM.N  and
Caterpillar  CAT.N , which have been among the hardest hit
throughout the recent trade dispute, were among the Dow's
biggest drags on Wednesday.
    The materials index  .SPLRCM , down 1.7 percent, was another
big negative influence among sectors, with Freeport-McMoRan
 FCX.N  down 3.7 percent as copper prices hit their lowest in
about a year.  urn:newsml:reuters.com:*:nL4N1U73HL
    "The tone of today didn't start off well due to tariff
fears," said Michael Antonelli, managing director, institutional
sales trading, at Robert W. Baird in Milwaukee.
    But, he said, "the drop in oil is driving this extra drop
lower."
    The S&P 500 energy index  .SPNY  fell 2.1 percent, leading
sector declines. U.S. crude oil futures settled down 5 percent
on the trade dispute escalation and as expectations of growing
supplies increased on news that Libya would reopen ports.
 urn:newsml:reuters.com:*:nL4N1U71P4
    The Dow Jones Industrial Average  .DJI  fell 186.39 points,
or 0.75 percent, to 24,733.27, the S&P 500  .SPX  lost 16.59
points, or 0.59 percent, to 2,777.25 and the Nasdaq Composite
 .IXIC  dropped 32.84 points, or 0.42 percent, to 7,726.35.
    The drop is not as steep as what was seen in late March and
early April when the escalating trade rhetoric between China and
the United States led to the S&P falling more than 2 percent on
four occasions.
    The market slide has been contained by the speculation that
the Trump administration could change its mind by the end of
August, when the tariffs are due to come into effect, some
strategists said.  
    Investors are also looking forward to the earnings season,
where S&P 500 companies are expected to post second-quarter
profit growth of around 21 percent, according to Thomson Reuters
data.
    However, Morgan Stanley told clients that the earnings
season could trigger risk aversion among investors if companies
start warning of slower growth due to trade tariffs.
 urn:newsml:reuters.com:*:nL8N1U71ZS
    Chipmakers, which largely depend on China for their revenue,
weighed the most, with the Philadelphia semiconductor index
 .SOX  falling 2.4 percent.
    The utilities sector  .SPLRCU  was the only one in positive
territory, with a 0.8 percent gain.
    Twenty-First Century Fox  FOXA.O  fell 3.6 percent after the
media company raised its offer for Britain's Sky  SKYB.L ,
seeing off rival bidder Comcast  CMCSA.O  for now. Comcast
shares were up 1.2 percent.
    Declining issues outnumbered advancing ones on the NYSE by a
2.31-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored decliners.
    The S&P 500 posted 12 new 52-week highs and 1 new lows; the
Nasdaq Composite recorded 59 new highs and 43 new lows.   

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Sino-US war and S&P 500    https://reut.rs/2NKw0pN
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 (Additional reporting by Amy Caren Daniel in Bengaluru; Editing
by Anil D'Silva and Chizu Nomiyama)
 ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;
Reuters Messaging:
caroline.valetkevitch.thomsonreuters.com@reuters.net))

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