Dow futures fall over 300 points as U.S.-China trade talks appear stalled - MarketWatch

Wall Street was setting up for a tough start to the week on Monday, with Dow Jones Industrial Average futures down roughly 500 points as China moved to raise tariffs on U.S. goods and take other retaliatory measures after Washington last week raised duties on $200 billion of Chinese imports.

How did the benchmark indexes fare?

Dow futures YMM9, -1.91%  496 points, or 1.9%, to 25,648, while S&P 500 futures ES, +1.86% dropped 57.80 points, or 2%, to 2,829.10. Nasdaq-100 futures NQM9, -2.53%  slid 192 points, or 2.5%, to 7,418.25.

On Friday, the Dow Jones Industrial Average DJIA, +0.44%  rose 114.01 points, or 0.4%, to end at 25,942.37, recovering from a deficit of more than 350 points. The S&P 500 index  SPX, +0.37% gained 0.4% to 2,881.40, while the Nasdaq Composite Index  COMP, +0.08% climbed 0.1% to 7,916.94.

For the week, the Dow fell 2.1%, its biggest weekly loss since March. The S&P saw a 2.2% weekly fall and the Nasdaq shed 3%, the biggest losses for both since the week ending Dec. 21.

Read: Why the stock market is at the mercy of the U.S. consumer

What drove the market?

Trade tensions that drove volatility for stocks last week were rebooting Monday, as investors faced up to the fact that a deal between the U.S. and China could take longer than they expected. Talks in Washington ended with no agreement on Friday.

After raising tariffs on $200 billion worth of annual Chinese imports from 10% to 25% on Friday, the Trump administration said it was ready to impose 25% tariffs on another roughly $300 billion worth of Chinese goods, or nearly all the remaining products Americans buy from China each year.

On Monday, Chinese officials announced retaliatory tariffs against the U.S., hitting $60 billion in annual exports to China with new or expanded duties that could reach 25%. Hu Xijin, editor in chief of China’s Global Times, a daily Chinese tabloid with ties to the Communist Party, reported on Twitter Monday morning that China may take further steps in the coming days and weeks.

China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.

— Hu Xijin 胡锡进 (@HuXijin_GT) May 13, 2019

In several tweets over the weekend, President Donald Trump argued that the U.S. was in an advantageous position over trade, though White House economic adviser Larry Kudlow admitted Sunday that “both sides” will feel the pain. His comment that Trump and China’s President, Xi Jinping, may meet at the Group of 20 international conference in June failed to soothe investors.

Trump early Monday continued to send tweets regarding the talks, arguing that there was “no reason” for U.S. consumers to pay tariffs and that companies would leave China to avoid the duties if a deal isn’t reached.

....completely avoided if you by from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!...

— Donald J. Trump (@realDonaldTrump) May 13, 2019

Chinese media over the weekend ran several editorials blasting the U.S. position and vowing that Beijing would stand firm in the talks.

Read: Chinese media says ‘fierce U.S. offensive’ over trade won’t work

Which stocks are in focus?

Shares of several companies perceived as sensitive to rising U.S.-China trade tensions were under pressure before the start of trade Monday, including Apple Inc. AAPL, -1.39% semiconductor firm Advanced Micro Devices Inc. AMD, +2.76% and Intel Corp. INTC, -0.90%

Uber Inc. stock will remain in focus Monday, after the ride-hailing firm made its debut on the New York Stock Exchange Friday. After pricing at $45 per share, Uber stock closed down 7.6% at 41.57. Shares remain under pressure in premarket trade, down 6.1% before the bell.

Videogame publisher Take-Two Interactive Software Inc. TTWO, +1.23% and Tencent Holdings Ltd. TCEHY, +1.51% are both set to report earnings after the close on Monday.

What’s on the economic calendar?

At 11 a.m. Eastern Time, the Federal Reserve will release its survey of consumer expectations.

Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida were each set to speak at separate conferences on Monday, starting at around 9 a.m. Eastern Time.

What are strategists saying?

“Any good will to risk assets on Friday has faded through Asia, and there the preservation of capital is the overriding theme, although there is absolutely no panic,” said Chris Weston, head of research at Pepperstone.

“Protectionism and the impact that can have on demand can be hard to model, and it feels that with these dynamics in play the market will further de-risk, with traders wanting a return of their equity, as opposed to on their equity,” Weston added.

How are other assets trading?

Trade worries weighed on Asian markets, where the Shanghai Composite SHCOMP, -1.21%  closed down 1.2% and other major indexes logged losses of 1% or more. Europe followed suit with the Stoxx Europe 600 SXXP, -1.16%  down 0.6%.

As investors backed out of equities, haven assets such as the Japanese yen got a bid, with the USDJPY, -0.78%  rising 0.1% to ¥109.68 against the dollar DXY, -0.23% But gold GCM9, +0.30%  slipped about 0.2%.

Oil prices CLM9, +1.33% were climbing after Saudi Arabia said two oil tankers were attacked near the Strait of Hormuz early Sunday.

See: Strait of Hormuz: Oil ‘choke point’ in focus as U.S. ends Iran waivers

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2019-05-13 12:10:00Z
CAIiEGG5Qu8sd6lMViA7ZHM6pVUqGAgEKg8IACoHCAowjujJATDXzBUwiJS0AQ

China will raise tariffs on some US goods from June 1 - ForexLive

China hits back

China to raise tariffs on US goods.

They plan to set import tariffs on $60 billion worth of US goods. The tariffs will range from 5%-25%.

Reports also say China may stop purchasing US agricultural products and energy, cut Boeing orders and restrict US service trade with China. The Global Times reports that Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically.

Headlines are just crossing but the Australian and Canadian dollars are down to session lows. US stock futures are falling, with S&Ps down nearly 50 points.

This is starting to look dire. Trump is dead-set on tariffs and China has decided it can take the pain.

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https://www.forexlive.com/news/!/china-says-to-raise-tariffs-on-some-us-goods-from-june-1-20190513

2019-05-13 12:09:00Z
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62% of millennials say they're living paycheck to paycheck - CNBC

Almost two-thirds of millennials say they're living paycheck to paycheck and only 38% feel financially stable, according to a new survey from Charles Schwab.

Millennials, more than any other generation surveyed by Schwab, feel the most insecure when it comes to their finances. That's according to roughly 380 millennials (ages 23 to 38) surveyed for Schwab's 2019 Modern Wealth report.

Yet millennials also say they spend an average of $478 a month on "nonessential" purchases, such as dining out, entertainment, luxury items and vacations. That's less than the $587 Gen Xers report spending, but more than the $359 spent by baby boomers.

"It may seem odd that when we look at statistics that say so many millennials are living paycheck to paycheck, but on the other hand, they're overspending," says Farnoosh Torabi, personal finance author and host of the "So Money" podcast. Schwab partners with Torabi's Stacks House, a pop-up experience that promotes financial independence for women.

But while it may seem counterintuitive, it's the reality many millennials face, she says. "When your financial life is in disarray, chances are, you will overspend," she tells CNBC Make It. "Emotions around money lead us to make irrational choices."

It's not just a spending problem

It may be easy to criticize millennials for simply spending too much, but other issues are also at play, Terri Kallsen, Schwab's executive vice president of investor services, tells CNBC Make It.

"Spending is not the enemy that we might think that it is," she says. As a generation, millennials also are facing systemic financial issues that can feel overwhelming. They generally carry more debt than previous generations did at their age, for example. One major reason for that is student loans. The number of households with student loan debt doubled from 1998 to 2016, Pew Research Center found. The median amount of loan debt millennials carried was $19,000, significantly higher than Gen Xers' balance of $12,800 at the same age.

Student loans are not the only kind of debt millennials hold. About 40% of millennials (defined here as those 20 to 35 years old) have credit card debt, according to a recent survey by LightStream, the online lending division of SunTrust Bank.

Millennials ages 25 to 34 had an average of $36,000 in debt last year, excluding home mortgages, according to Northwestern Mutual's 2018 Planning & Progress Study.

Rising home costs and the fact that salaries just don't go as far as they once did to cover the necessities also adds to the pressure.

"When you're saddled with student loan debt, when you have credit card debt, when you don't have a lot of financial literacy, that can lead you to making unhealthy decisions with your money, including overspending," Torabi says.

It's about finding 'balance'

While managing your money is part math, most of it comes down to mindset, Torabi says.

Adds Kallsen:  "We want people to have good experiences in life, but the most important thing is that people find the right balance so that spending doesn't impact their long-term financial security."

You need to find a strategy that works for you and allows you to have rewarding life experiences and save for the future. "Too much of any one thing is not a good thing for your overall biochemistry," Kallsen says. "And too much of any one thing, from a finance standpoint, is not a good thing for your overall financial plan."

If you're trying to reduce your spending, the first step is to get organized about what you spend and how you spend it, Saundra Davis, a financial coach and adjunct professor at Golden State University, tells CNBC Make It. "Know where you are and know what you want," she says.

Be really clear with yourself about what you want and what's achievable. And be realistic, she says. Don't expect yourself to go immediately from saving nothing to putting away $400 a month. If you can barely save $40, start by trying to save $40.

Surround yourself with people and influences that will help you make healthy financial decisions. "If you're hanging out with people who are constantly spending money, constantly keeping up with the Joneses, guess what — that's going to have a big impact on your bottom line as well," Torabi says.

Don't miss: 52% of Americans have cried about money—but this simple 3-step plan can help

Like this story? Subscribe to CNBC Make It on YouTube!

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2019-05-13 11:37:28Z
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62% of millennials say they're living paycheck to paycheck - CNBC

Almost two-thirds of millennials say they're living paycheck to paycheck and only 38% feel financially stable, according to a new survey from Charles Schwab.

Millennials, more than any other generation surveyed by Schwab, feel the most insecure when it comes to their finances. That's according to roughly 380 millennials (ages 23 to 38) surveyed for Schwab's 2019 Modern Wealth report.

Yet millennials also say they spend an average of $478 a month on "nonessential" purchases, such as dining out, entertainment, luxury items and vacations. That's less than the $587 Gen Xers report spending, but more than the $359 spent by baby boomers.

"It may seem odd that when we look at statistics that say so many millennials are living paycheck to paycheck, but on the other hand, they're overspending," says Farnoosh Torabi, personal finance author and host of the "So Money" podcast. Schwab partners with Torabi's Stacks House, a pop-up experience that promotes financial independence for women.

But while it may seem counterintuitive, it's the reality many millennials face, she says. "When your financial life is in disarray, chances are, you will overspend," she tells CNBC Make It. "Emotions around money lead us to make irrational choices."

It's not just a spending problem

It may be easy to criticize millennials for simply spending too much, but other issues are also at play, Terri Kallsen, Schwab's executive vice president of investor services, tells CNBC Make It.

"Spending is not the enemy that we might think that it is," she says. As a generation, millennials also are facing systemic financial issues that can feel overwhelming. They generally carry more debt than previous generations did at their age, for example. One major reason for that is student loans. The number of households with student loan debt doubled from 1998 to 2016, Pew Research Center found. The median amount of loan debt millennials carried was $19,000, significantly higher than Gen Xers' balance of $12,800 at the same age.

Student loans are not the only kind of debt millennials hold. About 40% of millennials (defined here as those 20 to 35 years old) have credit card debt, according to a recent survey by LightStream, the online lending division of SunTrust Bank.

Millennials ages 25 to 34 had an average of $36,000 in debt last year, excluding home mortgages, according to Northwestern Mutual's 2018 Planning & Progress Study.

Rising home costs and the fact that salaries just don't go as far as they once did to cover the necessities also adds to the pressure.

"When you're saddled with student loan debt, when you have credit card debt, when you don't have a lot of financial literacy, that can lead you to making unhealthy decisions with your money, including overspending," Torabi says.

It's about finding 'balance'

While managing your money is part math, most of it comes down to mindset, Torabi says.

Adds Kallsen:  "We want people to have good experiences in life, but the most important thing is that people find the right balance so that spending doesn't impact their long-term financial security."

You need to find a strategy that works for you and allows you to have rewarding life experiences and save for the future. "Too much of any one thing is not a good thing for your overall biochemistry," Kallsen says. "And too much of any one thing, from a finance standpoint, is not a good thing for your overall financial plan."

If you're trying to reduce your spending, the first step is to get organized about what you spend and how you spend it, Saundra Davis, a financial coach and adjunct professor at Golden State University, tells CNBC Make It. "Know where you are and know what you want," she says.

Be really clear with yourself about what you want and what's achievable. And be realistic, she says. Don't expect yourself to go immediately from saving nothing to putting away $400 a month. If you can barely save $40, start by trying to save $40.

Surround yourself with people and influences that will help you make healthy financial decisions. "If you're hanging out with people who are constantly spending money, constantly keeping up with the Joneses, guess what — that's going to have a big impact on your bottom line as well," Torabi says.

Don't miss: 52% of Americans have cried about money—but this simple 3-step plan can help

Like this story? Subscribe to CNBC Make It on YouTube!

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https://www.cnbc.com/2019/05/10/62-percent-of-millennials-say-they-are-living-paycheck-to-paycheck.html

2019-05-13 11:02:29Z
52780295006666

Dow futures drop nearly 300 points as U.S.-China trade talks appear stalled - MarketWatch

Wall Street was setting up for a tough start to the week on Monday, with Dow Jones Industrial Average futures down over 300 points as investors waited for countermeasures from China after trade talks with the U.S. appeared to end in a stalemate.

How did the benchmark indexes fare?

Dow futures YMM9, -1.20%  fell 311 points, or 1.2%, to 25,653, while S&P 500 futures ES, +1.86% dropped 36.40 points, or 1.2%, to 2,850.50. Nasdaq-100 futures NQM9, -1.66%  slid 127.75 points, or 1.7%, to 7,482.50.

On Friday, the Dow Jones Industrial Average DJIA, +0.44%  rose 114.01 points, or 0.4%, to end at 25,942.37, recovering from a deficit of more than 350 points. The S&P 500 index  SPX, +0.37% gained 0.4% to 2,881.40, while the Nasdaq Composite Index  COMP, +0.08% climbed 0.1% to 7,916.94.

For the week, the Dow fell 2.1%, its biggest weekly loss since March. The S&P saw a 2.2% weekly fall and the Nasdaq shed 3%, the biggest losses for both since the week ending Dec. 21.

Read: Why the stock market is at the mercy of the U.S. consumer

What drove the market?

Trade tensions that drove volatility for stocks last week were rebooting Monday, as investors faced up to the fact that a deal between the U.S. and China could take longer than they expected. Talks in Washington ended with no agreement on Friday.

The Trump administration said it was ready to impose 25% tariffs on another $300 billion worth of Chinese goods, nearly all that country’s imports, after that duty was lifted to 10% as of Friday. Investors are now waiting for retaliatory measures from Beijing. The country’s chief negotiator, Vice Premier Liu He, has demanded tariffs on Chinese exports to the U.S. be lifted as a condition for striking a deal.

In several tweets over the weekend U.S. President Trump tweeted that the U.S. was in an advantageous position over trade, though White House economic adviser Larry Kudlow admitted Sunday that “both sides” will feel the pain. His comment that Trump and China’s President, Xi Jinping, may meet at the Group of 20 international conference in June failed to soothe investors.

Trump early Monday continued to send tweets regarding the talks, arguing that there was “no reason” for U.S. consumers to pay tariffs and that companies would leave China to avoid the duties if a deal isn’t reached.

....completely avoided if you by from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!...

— Donald J. Trump (@realDonaldTrump) May 13, 2019

A Sunday editorial in the Global Times, a daily Chinese tabloid newspaper published by the Communist Party, said the “fierce U.S. offensive is irrational,” and the idea that China cannot bear a trade war is “a fantasy and misjudgment.”

“China has been pushing forward the bilateral talks with a high sense of responsibility and maximized sincerity, but it will never yield to the extreme pressure from the U.S., or compromise on matters of principle,” said a Monday op-ed in The People’s Daily, an official newspaper of the Central Committee of the Communist Party

With no economic data on the calendar, investors were likely to keep the focus on those tensions. Boston Fed President Eric Rosengren and Fed Vice Chairman Richard Clarida were each set to speak at separate conferences on Monday, starting at around 9 a.m. Eastern Time.

What are strategists saying?

“Any good will to risk assets on Friday has faded through Asia, and there the preservation of capital is the overriding theme, although there is absolutely no panic,” said Chris Weston, head of research at Pepperstone.

“Protectionism and the impact that can have on demand can be hard to model, and it feels that with these dynamics in play the market will further de-risk, with traders wanting a return of their equity, as opposed to on their equity,” Weston added.

How are other assets trading?

Trade worries weighed on Asian markets, where the Shanghai Composite SHCOMP, -1.21%  closed down 1.2% and other major indexes logged losses of 1% or more. Europe followed suit with the Stoxx Europe 600 SXXP, -0.55%  down 0.5%.

As investors backed out of equities, haven assets such as the Japanese yen got a bid, with the yen rising 0.3% to ¥109.67 against the dollar DXY, -0.04% But gold GCM9, -0.26%  slipped about 0.3%. Industrial metals were down across the board with copper HGN9, -1.15%  off 1% to $2.740 a pound.

Oil prices CLM9, +1.35% were climbing after Saudi Arabia said two oil tankers were attacked near the Strait of Hormuz early Sunday.

See: Strait of Hormuz: Oil ‘choke point’ in focus as U.S. ends Iran waivers

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https://www.marketwatch.com/story/dow-futures-drop-over-200-points-as-u-s-china-trade-talks-appear-stalled-2019-05-13

2019-05-13 09:49:00Z
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Following an Epic Surge, Analyst Expects Bitcoin to Pullback to $4,300 - newsBTC

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1. Following an Epic Surge, Analyst Expects Bitcoin to Pullback to $4,300  newsBTC
2. Bitcoin Climbs Above $7,000 as Cryptocurrency Rally Extends  Bloomberg
3. Crypto world descends on New York as bitcoin makes come back  Yahoo Finance
4. Bitcoin Gains $1000 Over The Weekend, No Signs Of Market Top  Kitco News
5. Bitcoin jumps above $7,000 to 9-month high  Financial Times
6. View full coverage on Google News

https://www.newsbtc.com/2019/05/13/pullback-expected-after-bitcoins-first-1000-weekend/

2019-05-13 08:30:00Z
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Forex - Dollar Hits New 4-Month High as Trade Dispute Worsens - Investing.com

© Reuters.

Investing.com -- The dollar hit a four-month high against the but was lower against the yen and Swiss franc early Monday in Europe as the worsening trade conflict between the U.S. and China prompted bids for ‘safe-haven’ assets.

At 03:00 AM ET (0700 GMT), the dollar was at 109.73 , down 0.2% from late Friday, and having dipped as low as 109.60 overnight. That was just a little above the three-month low that the pair hit on Friday as a fresh round of U.S. tariffs on Chinese imports came into force.

The dollar hit a new four-month high against the yuan of 6.8654 overnight.

Over the weekend, President Donald Trump initiated a process to levy 25% tariffs on all remaining untouched Chinese imports, but the two sides continued to negotiate, avoiding an all-out breakdown of the talks. It’s still unclear what form China’s promised retaliation will take.

Anthony Kettle, a senior portfolio manager with BlueBay Asset Management, said it was “logical” that any deal to settle the dispute will now be delayed and that global growth in the second quarter could suffer as a result.

“This represents a significant change compared to market expectations for a deal being signed this week,” Kettle said. “Trade uncertainty is not the market’s friend, and this leads us to take a more cautious stance in the near term, despite the better economic data of late.”

The , which measures the greenback against a basket of six major currencies, was at 97.340, effectively unchanged from Friday as weakness against havens was offset by a rise against risk proxies such as the and .

In Europe, there was little on the data or political calendar to move the or . Sterling may be buffeted later in the week by more political maneuvering ahead of European Parliament elections in nine days’ time, as poor polling numbers put more pressure on Prime Minister Theresa May to break off talks with the Labour Party on a cross-party deal to deliver Brexit.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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2019-05-13 06:40:00Z
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