Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI tumbled Wednesday after the U.S. threatened additional tariffs on $200 billion worth of China-made goods.
- Leading decliners Wednesday on the blue-chip Dow were Caterpillar Inc. (CAT) - Get Report , Chevron Corp. (CVX) - Get Report and DowDuPont Inc. (DWDP) - Get Report .
- Pfizer Inc. (PFE) - Get Report fell after the drugmaker said Tuesday it would defer price hikes following talks with Donald Trump and said Wednesday that it plans to reorganize into three business units.
Wall Street Overview
Stocks on Wall Street closed sharply lower and global stocks tumbled on Wednesday, July 11, following the latest escalation in trade war rhetoric from the White House, which published a list of $200 billion worth of China-made goods it said will be hit with fresh tariffs.
The list, which includes products across sectors such as consumer technology, agriculture and automobile parts and equipment, came just days after Donald Trump unveiled $34 billion in tariffs on Chinese goods that were immediately reciprocated by Beijing.
"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition," U.S. Trade Representative Robert Lighthizer said in a statement. "Rather than address our legitimate concerns, China has begun to retaliate against U.S. products ... There is no justification for such action."
China's Commerce Ministry said Wednesday that the latest tariff threat was "bad for China, the U.S. and the rest of the world" and promised to retaliate with both "quantitative and qualitative" measures.
The Producer Price Index, which measures inflation at the wholesale level, rose 0.3% in June, higher than economists' estimates of up 0.2%. PPI for the last 12 months rose to 3.4% from 3.1%, the highest level since 2011.
Twenty-First Century Fox Inc. (FOXA) - Get Report increased its bid to buy Britain's Sky PLC on Wednesday, just a day ahead of expected clearance from U.K. authorities in a deal that could pressure Comcast Corp.'s (CMCSA) - Get Report ability to top Walt Disney Co. (DIS) - Get Report in the race for Rupert Murdoch's U.S. media assets. Twenty-First Century Fox shares fell 4%.
The price increases went into effect on July 1. But Pfizer, in a statement, said it would "defer" the price hikes to "give the president an opportunity to work on his blueprint to strengthen the healthcare system and provide more access for patients."
Meanwhile, Pfizer said Wednesday it would reorganize its business into three units.
- Pfizer to Reorganize Itself Into 3 Business Units
- Pfizer's Reorganization Into 3 Businesses Raises the Specter of a Split
The Fair Trade Commission said that Apple's Japanese unit had forced NTT Docomo Inc., KDDI Corp. and SoftBank Group Corp. to offer subsidies and sell iPhones at a discount, according to Reuters. Shares fell 1.4%.
Dunkin' Brands Group Inc. (DNKN) - Get Report named David Hoffmann as CEO. He will remain as president of Dunkin' Donuts U.S.. Hoffmann succeeds Nigel Travis, who has served as CEO since 2009. Travis was appointed executive chairman. Shares rose 0.5%.
Action Alerts PLUS holding PayPal Holdings Inc. (PYPL) - Get Report edged up 0.06% to $86.22 after Susquehanna Financial Group raised its target price on the stock to $105 from $93 and maintained a positive rating.
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