The Dow Jones Industrial Average and other key indexes sold off in the stock market today amid heightened U.S.-China trade war concerns and weak manufacturing data.
XThe Dow Jones industrials and Nasdaq tumbled 1.1% each, while the S&P 500 gave up 0.7%. Small caps tracked by the Russell 2000 slumped 1.4%. Early figures showed higher volume on both the NYSE and Nasdaq.
On Sunday, the U.S. imposed 15% tariffs on Chinese goods including electronics. China then set 5% to 10% tariffs on American goods including crude oil.
The Institute for Supply Management's manufacturing gauge for August came in at 49.1, well below forecasts for 51.3. That marked the first reading below 50 — which signals contraction — in three years.
Boeing (BA), down 2.7%, led the losers in the Dow Jones index. Shares gapped down to test their 50-day moving average. The jet maker's 737 Max may be grounded into the holiday travel season, the Wall Street Journal reported. Financial stocks Goldman Sachs (GS) and American Express (AXP) also shed more than 2% each.
Apple, Microsoft Fall
Big-cap techs Apple (AAPL) and Microsoft (MSFT) fell 1.5% and 1.3%, respectively. Apple, which relies on China for some key components, is testing its 50-day. Microsoft slipped below its support line. Apple is now five weeks into a new flat base with a 221.47 buy point. Microsoft is also shaping a new flat base. The potential entry is 141.77.
The broad sell-off hit banks, chipmakers and building-related stocks particularly hard. Mostly defensive industry groups bucked the decline, such as gold miners, utilities and food.
Over in the IBD 50, Planet Fitness (PLNT) stumbled 5% to test its 200-day line. The stock continues to work on a double-bottom base with a potential 79.90 buy point.
China stocks Huya (HUYA) and New Oriental Education (EDU) lost about 4% each, as did Temper Sealy International (TPX), SolarEdge Technologies (SEDG) and textbook firm Chegg (CHGG).
Only a handful of IBD 50 stocks avoided the sell-off. The biggest gainers were Kirkland Lake Gold (KL), up 2%, and CareTrust REIT (CTRE), which added 1%. Gold prices rose 1.5% to $1,551.60 an ounce as investors seek a safe haven.
Gold funds have rallied. SPDR Gold Shares (GLD) gained 1.4% and is near its highest levels since April 2013, as is iShares Gold Trust (IAU), up 1.6%. VanEck Vectors Gold Miners (GDX) and VanEck Vectors Junior Gold Miners (GDXJ) added a respective 1.7% and 2.2%.
The Innovator IBD 50 ETF (FFTY) fell 1.2% in today's stock market.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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