U.S. stocks post weekly losses amid trade tension concerns, earnings

Source: Xinhua| 2019-08-12 01:33:41|Editor: ZX
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NEW YORK, Aug. 11 (Xinhua) -- U.S. stocks posted losses after a roller-coaster ride throughout the past week as the market monitored the latest development of U.S.-China trade tensions and quarterly corporate earnings results.

For the week, the Dow lost 0.8 percent, the S&P 500 erased 0.5 percent, and the Nasdaq was down 0.6 percent.

Trump tweeted on Aug. 1 that he would place an additional 10 percent tariff on the remaining 300 billion U.S. dollars worth of Chinese imports starting on Sept. 1.

Several U.S. industry associations have voiced their opposition to the White House plan to impose more tariffs, arguing that such an action will not facilitate negotiation but only hurt Americans.

Analysts have said that since the new tariffs would target retail items, along with other consumer goods, the impact on the U.S. economy will be more direct.

The threatened tariff will also drag on corporate confidence, capital expenditures and global growth in the near term, Morgan Stanley strategists said in a note.

China's National Development and Reform Commission and the Ministry of Commerce said it would temporarily not rule out the possibility of levying additional tariffs on imported U.S. farm produce with deals made after Aug. 3, and related Chinese companies have halted purchases of U.S. farm produce.

In corporate news, Disney shares lost more than 5 percent on weaker-than-expected quarterly earnings results.

The company reported earnings per share of 1.35 U.S. dollars and revenue of 20.25 billion dollars Tuesday after market close, both missing analysts' expectations.

Lyft reported quarterly earnings results that beat market expectations Wednesday after market close. It reported revenue of 867.3 million U.S. dollars, an increase of 72 percent year over year.

Uber reported quarterly earnings results that missed market expectations. The ride-hailing platform registered diluted net loss of 4.72 U.S. dollars per common share on revenue of 3.17 billion dollars. Its shares were down 6.8 percent on Friday.

On the economic front, in the week ending Aug. 3, the advance figure for seasonally adjusted initial claims was 209,000, a decrease of 8,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 215,000 to 217,000, according to the Labor Department on Thursday.

The four-week moving average was 212,250, an increase of 250 from the previous week's revised average. The previous week's average was revised up by 500 from 211,500 to 212,000, said the department.