Renewed Trade War Fears Spark Pullback

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after renewed trade war fears spark pullback. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

US stocks set to open slightly higher as Italian political concerns ease

U.S. stock index futures eked out slight gains ahead of Thursday’s open, supported by positive sentiment seen in markets overseas. Around 5:00 a.m. ET, Dow futures rose 13 points, indicating a higher open of 20.22 points. The Nasdaq and the S&P 500 futures indicated a slightly positive start to the session for their respective markets.

The S&P 500 (SPY) pulled back -0.69% today. Sector decliners led advancers 9 to 1 as shown below in the sector graph. Consumer staples (XLP) led decliners down with a -1.60 loss on the day. Other sectors with a 1% loss or more included healthcare (XLV) and industrials (XLI). Consumer discretionary (XLY), energy (XLE), financials (XLF), materials (XLB), real estate (XLRE) and technology (XLK) each closed with minor losses of less than 1%. Utilities (XLU) squeezed out a minor gain of less than 1%.

The Dow Jones index gave back 251 points (-1.02%) to close at 24,415. The Nasdaq subtracted 20 points (-0.27%) to settle at 7,442.

Renewed Trade War Fears Spark Pullback

News that the Trump administration was implementing tariffs on steel and aluminum on US allies European Union, Canada and Mexico pushed stocks into the red for the day. Boeing and Caterpillar…two multi national companies vulnerable to trade fell 1.7% and 2.3% respectively today.

Key takeaway…

For a better understanding on the tariffs applied to the European Union, Canada and Mexico…I found this informative article:

Trump administration will put steel and aluminum tariffs on Canada, Mexico and the EU

The Trump administration will put tariffs on steel and aluminum imports from Canada, Mexico and the European Union, the latest action in a string of protectionist policies to crack down on alleged trade abuses. The tariffs of 25 percent on steel imports and 10 percent on aluminum imports will take effect at midnight Thursday, Commerce Secretary Wilbur Ross told reporters.

Notable S&P movers…

I highlighted the notable S&P winners and losers for the day in each sector breakdown.

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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5/31/18

S&P 500 Sector Graph

Renewed Trade War Fears Spark Pullback

S&P 500 (SPY)

Renewed Trade War Fears Spark Pullback

Consumer Discretionary (XLY)

Renewed Trade War Fears Spark Pullback

Consumer Staples (XLP)

Renewed Trade War Fears Spark Pullback

Energy (XLE)

Renewed Trade War Fears Spark Pullback

Financials (XLF)

Renewed Trade War Fears Spark Pullback

Real Estate (XLRE)

Renewed Trade War Fears Spark Pullback

Healthcare (XLV)

Renewed Trade War Fears Spark Pullback

Industrials (XLI)

Renewed Trade War Fears Spark Pullback

Materials (XLB)

Renewed Trade War Fears Spark Pullback

Technology (XLK)

Renewed Trade War Fears Spark Pullback

Utilities (XLU)

Renewed Trade War Fears Spark Pullback

S&P 500 Sector Heat Map

Renewed Trade War Fears Spark Pullback

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