RPT-US STOCKS-Wall St snaps 4-day rally; latest trade threat weighs

Reuters

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    * U.S. proposes fresh tariffs on $200 bln worth of China
goods
    * Boeing, Caterpillar lead decliners on Dow 
    * Chipmakers slide
    * Indexes down: Dow 0.9 pct, S&P 0.7 pct, Nasdaq 0.6 pct 

 (Repeats to include in-line graphic. No changes to text)
    By Caroline Valetkevitch
    NEW YORK, July 11 (Reuters) - U.S. stocks fell on Wednesday,
breaking a four-session streak of gains 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 shares.
    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 by
the recent trade dispute, were among the Dow's biggest drags.
    Materials  .SPLRCM , down 1.7 percent, was another big
negative influence on the market, with Freeport-McMoRan  FCX.N 
down 3.9 percent as copper prices  CMCU3  hit their lowest in
about a year.  urn:newsml:reuters.com:*:nL4N1U73HL
    Investors said trade war worries may slip to the background
as investors begin to focus more closely on second-quarter
earnings over the coming weeks. Results from JPMorgan Chase
 JPM.N  and other big banks are due Friday.
   "The trade situation is worrisome but nothing more is going
to happen right away. This story may recede in people's
consciousness while current stories capture people's interests,
particularly earnings," said John Carey, portfolio manager at
Amundi Pioneer Asset Management in Boston.
    "People are looking for some fairly strong earnings, and
there's certainly potential for disappointment."
 
   Analysts are forecasting S&P 500 companies' earnings grew
about 21 percent in the second quarter from a year earlier,
according to Thomson Reuters data.
    Also pressuring the market Wednesday, the S&P 500 energy
index  .SPNY  fell 2.2 percent, leading sector declines. U.S.
crude oil futures  CLc1  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 219.21 points,
or 0.88 percent, to 24,700.45, the S&P 500  .SPX  lost 19.82
points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite
 .IXIC  dropped 42.59 points, or 0.55 percent, to 7,716.61.
    Chipmakers, which largely depend on China for their revenue,
fell, with the Philadelphia semiconductor index  .SOX  down 2.6
percent.
    The market's drop was 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 may have been contained in part by
speculation the Trump administration could change its mind by
the end of August, when the tariffs are due to come into effect,
some strategists said.  
    The utilities sector  .SPLRCU  was the only one in positive
territory, with a 0.9 percent gain.
    Twenty-First Century Fox  FOXA.O  fell 4 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 1.3 percent.
    Declining issues outnumbered advancing ones on the NYSE by a
2.74-to-1 ratio; on Nasdaq, a 1.87-to-1 ratio favored decliners.
    The S&P 500 posted 13 new 52-week highs and one new low; the
Nasdaq Composite recorded 63 new highs and 51 new lows.
    About 6.0 billion shares changed hands on U.S. exchanges.
That compares with the 6.9 billion daily average for the past 20
trading days, according to Thomson Reuters data.

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GRAPHIC: U.S.-China tariff war and the S&P 500    https://reut.rs/2NKw0pN
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 (Additional reporting by Amy Caren Daniel in Bengaluru; Editing
by Chizu Nomiyama and James Dalgleish)
 ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;
Reuters Messaging:
caroline.valetkevitch.thomsonreuters.com@reuters.net))

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