The Stock Market

8:41 p.m.
August 23, 2019

What a day not to buy or even trade stock. The Dow was not friendly today what does this mean for the future. The Dow Jones Industrial Average dropped nearly 600 points after Trump launched into a Twitter tirade lambasting China for intellectual property theft and fentanyl shipments to the US. 

“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing .your companies HOME and making your products in the USA,” Trump said.

The relentless back and forth between the two sides is making it impossible for businesses that have built a manufacturing base in China over the past 30+ years to plan for the future,” Jay Foreman, CEO of Basic Fun toy company lamented in an email to The Post.
“You cannot close the border to low skilled labor and order us to bring production back to America!” Foreman vented. “Never have we ever experienced such an unhinged way of governance. It’s out of control and outrageous.”

Investors were also rattled. Both the S&P 500 and Nasdaq joined in the Dow’s drop, shedding 2.2 percent and 2.6 percent.

Trump also directed Fed-Ex, Amazon, UPS and the US Post Office to “search for & refuse” fentanyl shipments from China and other countries. Shares of Amazon dropped 3.0 percent while Fedex and UPS shares were both off roughly 3.5 percent.
Apple, which makes many of its products in China,dropped 4.4 percent to $203.07 a share — making it the worst performer on the Dow.
“This escalates the trade war, unfortunately,” Donald Selkin, chief market strategist at Newbridge Securities, told The Post, adding that it is unclear that the President has the authority to order companies.
“The stocks taking the biggest beatings are the ones with the biggest China exposure,” Selkin said.
Trump’s remarks came following China announcing that it plans to impose $75 billion of tariffs on US goods including agricultural products and small aircraft as well as resume tariffs on US autos.
The tariffs are set to go into effect in two stages on Sept. 1 and Dec. 15, mimicking the schedule the US plans for instituting tariffs on Chinese goods.

The Stock Market The Stock Market Reviewed by Anson Moore on August 23, 2019 Rating: 5

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