Want Unlimited Digital Access to NY Daily News? Try 13 WEEKS FOR ONLY 99¢
Stock market plummets as President Trump attacks Amazon, China announces retaliatory tariffs
Stocks continued to slide Monday, as China slapped steep import penalties on American food companies and President Trump reignited his war of words with Amazon.
The Dow Jones industrial average dropped 459 points, or about 1.9%, landing at 23,645 points at the closing bell. It was down as much as 758 points earlier in the day.
Online retail giant Amazon saw its stock drop a whopping 5.2% to $1,372, marking a significant dent in its $1,600 per share that it peaked at last month. The benchmark Standard & Poor's 500 index and the Nasdaq both followed suit, tumbling 59 points, or 2.2%, and 193 points, or 2.7%, respectively.
Trader Joseph Lawler works on the floor of the New York Stock Exchange on Monday.
(RICHARD DREW/AP)
The stock market upset came after China announced sweeping tariffs on 120 U.S. food products, including a 25% penalty on frozen pork products. Beijing's move, which set off renewed fears of a global trade war, responds to Trump's announcement last month that his administration will enact harsh import tariffs on Chinese steel and aluminum.
Market analysts were concerned by the tariff tussle.
"The fact that a country has actually raised tariffs in retaliation is an important step in the wrong direction,” said Kate Warne, an investment strategist for Edward Jones.
While stocks skidded, Trump once again attacked Amazon over Twitter.
President Trump once again attacked Amazon on Twitter Monday.
(YURI GRIPAS/REUTERS)
"Only fools, or worse, are saying that our money losing Post Office makes money with Amazon," Trump tweeted before taking to the White House lawn to celebrate the annual Easter egg roll. "THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!"
But some critics say Trump's Amazon accusations are dubious at best.
China's President Xi Jinping waits during a signing ceremony at the Great Hall of the People in Beijing last year.
(FRED DUFOUR/AFP/GETTY IMAGES)
Amazon pays the same bulk shipping rate as other retailers, and some suspect that Trump has beef with the retailer because its owner, billionaire Jeff Bezos, also owns The Washington Post. Trump has a penchant for accusing the newspaper of peddling in "fake news."
Eric Schiffer, CEO of New York-based investment firm Patriarch, said Trump's repeated attacks on Amazon take on multiple layers.
"Donald Trump scores many political points here: He’s pushing his pro-America agenda, he’s advocating for small and medium-sized businesses and he’s taking a shot at someone who he feels has injured his brand," Schiffer told the Daily News, referring to Bezos.
Schiffer wasn't surprised by the Amazon stock plummet.
"People would rather go and invest in something that isn’t under White House assault," Schiffer said. "Investors get scared because there’s a perception of a thirst for war."
end quote from:
http://www.nydailynews.com/news/politics/stocks-plummet-trump-attacks-amazon-china-announces-tariffs-article-1.3910432
No comments:
Post a Comment