U.S. Stocks Fall as Trade War Heats Up
The announcement by U.S. President Donald Trump that the trade war with China is forthcoming affected the performance of U.S. stocks. The S&P 500 Index and the Dow Jones Industrial Average snapped their multi-day win streaks. Meanwhile, the Nasdaq Composite Index registered its worst daily decline since July 27.
All three main benchmarks fell on Monday. The broader S&P 500 shed 16.18 points (-0.56%) and blue-chip index Dow Jones shed 92.55 points (-0.35%). The tech-heavy Nasdaq lost 114.25 points (-1.43%) with Apple Inc. (AAPL) dropping -2.66% as worries that the tech giant will be hit by the new tariffs.
According to a senior administration official, Bluetooth devices and consumer electronics such as smartwatches were stricken off the list of Chinese products to be targeted with 10% tariffs starting next week. However, other tech products, including the networking equipment used by several tech companies were not excluded.
U.S. Announces New Round of Tariffs vs. China
The chance of a diplomatic breakthrough with China on trade has dissipated. White House announces a new round of tariffs on $200 billion worth of Chinese goods that shall take effect next week.
Even as Washington and Beijing are working to restart trade talks, Trump had urged his advisers to press forward with the tariffs. The U.S. will charge a 10% tariff on Chinese imports then increase to 25% at the end of the year.
The additional tariffs are on top of penalties charged earlier in 2018 on $50 billion worth of Chinese goods. Taken collectively, nearly half of the products that China sells to the U.S. each year will be hit by American tariffs. The Chinese government said it would strike back.
Apple and Qualcomm Lock Horns Before ITC
Apple Inc. (AAPL) is squaring off with and Qualcomm Inc. (QCOM) before the U.S. International Trade Commission (ITC). The second trial began between the iPhone maker and the world’s biggest mobile chipmaker began on Monday in Washington, D.C.
The case is one two cases Qualcomm is pursuing against Apple at the ITC. They are asking the trade judges to ban the importation of certain iPhone models containing Intel Corp.’s (INTC) modem chips. They argue that the said chips help phones connect to wireless data networks.
Apple previously accused Qualcomm of unfair patent licensing practices while Qualcomm has in turn accused Apple of patent infringement.
Netflix, Amazon Bring Home Emmy Awards
Netflix Inc. (NFLX) had a grand night at the 70th Emmy Awards on Monday night. The streaming services leader tied with Amazon.com Inc. (AMZN) for the most awards. Netflix edged AT&T Inc.’s (T) HBO for most nominations this year but tied with the premium cable channel with 23 wins apiece.
Among the Netflix shows that won an Emmy are “Black Mirror,” “Godless” and “Seven Seconds.” Claire Foy also won lead actress in a drama for her role in “The Crown.”
Amazon swept the comedy category with “The Marvelous Mrs. Maisel” winning five major awards – best comedy series, lead actress, supporting actress in a comedy, best writing, and best directing in a comedy.
HBO garnered major awards as well, including best drama series with “Game of Thrones” and a couple of awards for “Barry” for best lead and supporting actors in a comedy.
Japanese Billionaire is Space X’s First Passenger to the Moon
Tesla Inc. (TSLA) CEO Elon Musk disclosed the identity of his space transportation company’s first passenger on a voyage around the moon. Space X’s will have Japanese billionaire Yusaku Maezawa, the founder and chief executive of online fashion retailer Zozo, as the passenger.
The tentative target date for the moon flight aboard SpaceX’s forthcoming Big Falcon Rocket spaceship is 2023. “He’s a very brave person to do this.” Musk said of the Japanese entrepreneur. The announcement took place at Space X’s headquarters and rocket factory in the Los Angeles suburb of Hawthorne.
Maezawa is most famous worldwide for his record-breaking $110 million purchase of an untitled 1982 Jean-Michel Basquiat painting, The entrepreneur said he would be inviting 6 to 8 artists to join him on the said lunar orbit mission.-