(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)
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US job openings rise to 7.74 million in January
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Delta Air Lines ( DAL ) lowers first-quarter forecast, shares fall
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Kohl's slides on bleak annual sales forecast
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Dow Transportation index touches seven-month low
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Indexes: Dow slips 0.85%, S&P 500 off 0.37%, Nasdaq up
0.18%
(Updates to mid-session trading)
By Johann M Cherian and Pranav Kashyap
March 11 (Reuters) - The Dow and the benchmark S&P 500
fell in choppy trading on Tuesday after U.S. President Donald
Trump announced fresh tariffs on Canada, adding to investor
unease that his trade policies could trigger an economic
slowdown.
Trump doubled his planned tariffs on all imports of steel
and aluminum products from Canada to 50%, in response to the
province of Ontario's decision to place a 25% tariff on its
electricity exports to the United States.
He also threatened to "substantially increase" tariffs on
cars coming into the U.S. on April 2. Ford and General
Motors ( GM ), that have vast supply chains across North
America, fell around 3% each.
Global markets have been roiled ever since Trump sparked
back-and-forth tariff moves against major trading partners such
as Canada, Mexico and China. Analysts have warned that the
escalating trade tension could fan inflationary pressures and
potentially stall economic growth.
On Monday, the S&P 500 recorded its most significant one-day
drop since December 18, wiping out a staggering $4 trillion from
its recent peak. Meanwhile, the tech-heavy Nasdaq confirmed a
10% correction late last week.
"Every time we feel like we're getting a little bit of a
lift, we get a Trump update on more tariffs," said Dennis Dick,
a trader at Triple D Trading.
"International investors looking at all the political
uncertainty in the North American markets are saying let's
invest elsewhere."
At 11:46 a.m. ET the Dow Jones Industrial Average
fell 356.14 points, or 0.85%, to 41,555.57, the S&P 500
lost 21.02 points, or 0.37%, to 5,593.54 and the Nasdaq
Composite gained 31.77 points, or 0.18%, to 17,500.09.
Nine of the 11 S&P 500 subsectors fell, led by a 0.8% drop
in industrials. The S&P 500 equally weighted index
lost 1%.
Tariff uncertainty has also weighed on consumer sentiment,
with company executives increasingly flagging the impact it can
have on upcoming earnings.
Kohl's forecast a bigger-than-expected drop in
annual comparable sales, sending the retailer's shares down 23%.
Dick's Sporting Goods declined 5.9% after the
retailer forecast downbeat annual results.
Delta Air Lines ( DAL ) slid 7% after the carrier slashed
its first-quarter profit estimates by half.
American Airlines ( AAL ) also dropped 4.8% after the
carrier forecast a bigger-than-expected first-quarter loss,
sending the broader Dow transportation index down by
2.5%.
"(Tariff uncertainty) is creating a degree of paralysis
across the system," said David Russell, global head of market
strategy at TradeStation.
Trump will meet the chief executives of America's biggest
companies later in the day.
Meanwhile, a U.S. Labor Department report showed job
openings increased in January. A closely watched inflation
report is expected later in the week.
Interest rate futures point to the U.S. Federal Reserve
leaving borrowing costs unchanged at its meeting next week, but
traders are increasingly pricing in more interest rate cuts in
the second half of the year on expectations of slowing growth.
Aiding gains on the Nasdaq, megacaps such as Nvidia ( NVDA )
rose 3% and Amazon.com ( AMZN ) added 1.8%, while Tesla
added nearly 4.6% after the stock fell 15.4% in the previous
session.
Oracle dropped 3.7% after the cloud company missed
quarterly revenue estimates.
Citi became the latest brokerage to revise its stance on
U.S. stocks, downgrading its recommendation to "neutral".
Declining issues outnumbered advancers for a 1.43-to-1 ratio
on the NYSE and a 1.14-to-1 ratio on the Nasdaq.
The S&P 500 posted four new 52-week highs and 14 new lows,
while the Nasdaq Composite recorded 15 new highs and 267 new
lows.