US STOCKS-Trade worries threaten Wall St's four-day winning streak

Reuters

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    * US proposes fresh tariffs on $200 bln worth of China goods
    * Boeing, Caterpillar lead decliners on Dow 
    * Tech shares slide, chipmakers lead losses
    * Indexes down: Dow 0.82 pct, S&P 0.66 pct, Nasdaq 0.53 pct 

 (Changes comment; updates details, prices)
    By Amy Caren Daniel
    July 11 (Reuters) - U.S. stocks fell on Wednesday and looked
set to snap their four-day winning streak after Washington's
threat to impose tariffs on an additional $200 billion worth of
Chinese goods raised fears of an escalating trade war.
    China responded to Trump's threats by accusing the United
States of bullying and warned that it would hit back.
 urn:newsml:reuters.com:*:nL4N1U71IM
    The biggest drags on the Dow Jones Industrial Average were
Boeing  BA.N , 3M  MMM.N , Caterpillar  CAT.N  and Chevron
 CVX.N . Their shares were down between 1.7 percent and 2.9
percent.
    The materials index  .SPLRCM  dropped 1.95 percent, the most
among the major S&P sectors, led by a 4.7 percent drop in
Freeport-McMoRan  FCX.N , as copper prices hit their lowest in
about a year.  urn:newsml:reuters.com:*:nL4N1U73HL
    "These companies have the most going on with China tariffs,
so they would be the ones that get hurt the most," said Mark
Esposito, chief executive officer of Esposito Securities in
Dallas.
    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
    At 13:06 EDT the Dow Jones Industrial Average  .DJI  was
down 203.69 points, or 0.82 percent, at 24,715.97, the S&P 500
 .SPX  was down 18.43 points, or 0.66 percent, at 2,775.41 and
the Nasdaq Composite  .IXIC  was down 41.22 points, or 0.53
percent, at 7,717.98.
    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, Esposito
said.  
    
    The technology sector  .SPLRCT  slid 0.44 percent.
Chipmakers, which largely depend on China for their revenue,
weighed the most, with the Philadelphia semiconductor index
 .SOX  falling 2.35 percent.
    The defensive utilities sector  .SPLRCU  was the only one in
the positive territory, with a 0.45 percent gain.
    Twenty-First Century Fox  FOXA.O  fell 3.7 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 2 percent. 
    Fastenal's  FAST.O  shares rose 10.4 percent, the most on
the S&P, after the industrial products distributor's Q2 revenue
and profit topped estimates.
    TripAdvisor  TRIP.O , also among the top percentage gainers,
 rose 1.5 percent on a Barclays rating upgrade.   
    Declining issues outnumbered advancers for a 2.46-to-1 ratio
on the NYSE and for a 1.77-to-1 ratio on the Nasdaq.
    The S&P index recorded 11 new 52-week highs and one new low,
while the Nasdaq recorded 51 new highs and 32 new lows.

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 (Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil
D'Silva)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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