Stocks Tumble on Trade War Anxiety     05/23 09:57

   Stocks tumbled Thursday on Wall Street as investors' anxiety over the U.S. 
trade spat with China increased and put the market on track for its third 
straight week of losses.




   NEW YORK (AP) -- Stocks tumbled Thursday on Wall Street as investors' 
anxiety over the U.S. trade spat with China increased and put the market on 
track for its third straight week of losses.

   The Dow Jones Industrial Average fell as much as 400 points. Every sector in 
the S&P 500 index fell except for utilities. Investors sought safety in the 
bond market and the yield on the 10-year Treasury dropped to 2.33 percent, the 
lowest level in more than a year.

   The market has been highly volatile this month as the U.S. and China 
escalate their dispute over trade. The two sides have broken off negotiations 
and appear set for long standoff. Investors are concerned a prolonged trade war 
could hurt the U.S. economy and corporate profits. The broad S&P 500 index is 
on pace for its worst month of 2019.

   Trade-sensitive technology stocks again led the losses. Many tech companies 
do significant business with China and this week face the additional headwind 
of proposed restrictions on technology sales to Chinese companies by the Trump 
administration. Apple fell 2.1% and Microsoft fell 1.2%. Chipmakers, including 
Intel, Broadcom and Nvidia, all fell broadly.

   Banks also fell broadly in the sell-off. JPMorgan shed 2.1% and Bank of 
America slid 2.5%.

   Energy stocks slid as the price of oil plunged 4.8% to $58.50 a barrel. 


   Investors fled to safer holdings. Utilities were the only companies making 
gains. The sector is considered less of an investment risk and more money gets 
shifted into those stocks when people are concerned about volatility and a 
slowdown in economic growth.

   The U.S. and China concluded their 11th round of trade talks earlier this 
month with no agreement. Instead, the U.S. moved to increase tariffs on Chinese 
goods, prompting China to do the same. The trade dispute escalated further 
after the U.S. proposed restrictions on technology sales to China, though it 
has temporarily backed off.

   China is looking for ways to retaliate and has reached out for support from 
Russia and its neighbors in Asia. Both the U.S. and China have made overtures 
about continuing trade talks, but none are scheduled.

   Markets in Asia and Europe also saw steep losses. 


   KEEPING SCORE: The S&P 500 index fell 1.4% as of 10:20 a.m. The Dow Jones 
Industrial Average fell 370 points, or 1.4%, to 25,408. The Nasdaq composite 
rose 1.6%.

   BRAZIL CALLING: Avon shares soared 9.3% after Brazilian cosmetics maker 
Natura announced that it is buying the beauty products company for $3.7 billion 
in stock.

   The deal would create the world's fourth-largest group of beauty products. 
Natura also currently owns retail stores like The Body Shop.

   ENTICING PROFIT: Victoria's Secret owner L Brands surged 13.8% after blowing 
away Wall Street's first quarter earnings forecasts.

   The company, which also owns Bath & Body Works, gave investors a surprise 
profit on better-than-expected revenue. 


(BAS)

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