Dow turns lower as industrial stocks weigh

Lloyd Doyle
March 13, 2018

Boeing, Caterpillar and United Technologies all fell at least 2%. The S&P 500 was down 3.55 points, or 0.13 percent, to 2,783.02.

Friday's data and reaction were a marked difference from January jobs report last month, when a jump in hourly earnings growth sparked the first correction for the Dow and the S&P 500 in roughly two years.

The Dow Jones Industrial Average fell 157 points, or 0.62%, to 25,179, the S&P 500 lost four points, or 0.13%, to 2,783 and the Nasdaq Composite added 28 points, or 0.36%, to 7,588. The Treasury Budget reported a -$215.2 billion deficit in February.

Volatility can also push markets higher especially when it comes to the outlook for inflation and interest rates.

Traders of US short-term interest-rate futures, however, have reeled bets back in on the Federal Reserve delivering any more than the earlier forecast three rate hikes this year.

Investors will get a second indication of inflation this week, with an update on consumer prices due Tuesday.

Several big industrial stocks continued to fall. "The rise of trade hawks in the White House casts a dark shadow over trade in Asia", said Mizuho Bank in a report.

Retailers including Amazon and Starbucks also made headway.

Shares of Oclaro Inc.(OCLR) jumped 28% after Lumentum Holdings Inc.(LITE) said it would acquire the optical components company in a deal valued at $1.8 billion ( Lumentum also rose $4.33, or 6.3 percent, to $73.30. Co-lead director Jeff Fettig will assume the executive chairman role at the company, now known as DowDuPont Inc. Shares of the DowDuPont were down 1.2%.

Stocks ended up split on Wall Street as gains for technology companies were offset by losses elsewhere.

Australian shares are expected to start the day flat, as concerns about imported metal tariffs and the potential for a trade war continue to drag down Wall Street.

Shares of Broadcom Ltd. rose 3.6% after the Singapore-based semiconductor company said it expects to complete its relocation to the USA by 3 April. Over the year, average hourly earnings have increased by 68 cents, or 2.6 percent, lower than market expectations.

Many of the United States' big manufacturers have suffered since U.S. President Donald Trump announced plans to impose tariffs on steel and aluminum imports, a move that could increase their costs while hampering sales overseas.

Other reports by Iphone Fresh

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