(The Closing Bell will be updated sometime after 4:00 PM CDST to include the latest updates from IBD and Bloomberg Evening Briefing.)
FYI: U.S. stocks slid Monday, extending a turbulent streak of trading, after officials in Beijing and the White House exchanged fresh threats in a trade fight that many fear could crimp growth.
The Dow Jones Industrial Average fell 617 points, or 2.38%, to 25324, heading for its biggest one-day loss since January. The S&P 500 dropped 2.41% and the Nasdaq Composite declined 3.41%.
There is still time for the U.S. and China to carve out a trade agreement, analysts said, noting the two countries’ increased tariffs won’t hit goods in transit immediately. And U.S. indexes are still up solidly for the year: the S&P 500 and Nasdaq are up double-digit percentages in 2019. Still, investors and analysts say a breakdown of trade talks risks damaging business and consumer confidence, potentially crimping spending at a time when growth is already widely expected to moderate.
UBS analysts estimate U.S. growth could drop by 0.75 to 1 percentage point and stocks could fall double-digit percentages if the U.S. hits all Chinese exports with 25% tariffs.
Shares of manufacturers and chip makers slid anew Monday, extending a slide from late last week.
Heavy machinery maker Caterpillar fell 5.2%, while Boeing lost 4.2% and memory-chip maker Micron Technology shed 4%. The group has been sensitive to developments on trade, especially because many analysts believe its profits are closely tied to global growth and demand from China.
iPhone maker Apple, which assembles almost all of its goods in China, slid 5.4%.
The Russell 2000 index of small-capitalization companies, which tends to be especially sensitive to U.S. growth prospects, lost 3.4%.
Stock indexes outside of the U.S. also came under selling pressure, with the Stoxx Europe 600 and Shanghai Composite losing 1.2% apiece.
Later this week, investors will be watching for reports on U.S. retail sales, as well as housing starts.
The bond market flashed fresh warning signs about growth Monday, with the yield on the benchmark 10-year U.S. Treasury note sliding below 2.400% for the first time since March. Yields, which fall as bond prices rise, tend to decline when investors are less optimistic about the economic outlook.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-05-13/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/dow-futures-drop-over-200-points-as-u-s-china-trade-talks-appear-stalled-2019-05-13/printWSJ:
https://www.wsj.com/articles/global-stocks-stumble-on-renewed-trade-anxiety-11557734434?mod=article_inlineBloomberg:
https://www.bloomberg.com/news/articles/2019-05-12/yen-advances-yuan-slips-as-trade-war-escalates-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-tumbles-617-points-stock-indexes-break-support/CNBC:
https://www.cnbc.com/2019/05/13/us-markets-react-to-china-trade-war-news-and-more.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-rout-worsens-as-china-hits-back-on-trade-idUSKCN1SJ159?il=0U.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-falls-as-trade-dispute-escalates-investors-disconnect-from-vodafone-idUKKCN1SJ0N7Europe:
https://www.reuters.com/article/europe-stocks/update-1-european-shares-hit-seven-week-lows-amid-u-s-china-trade-standoff-idUSL5N22P1NWAsia:
https://www.marketwatch.com/story/asian-stocks-move-lower-monday-as-markets-react-to-failed-us-china-trade-talks-in-washington-2019-05-13/printBonds:
https://www.cnbc.com/2019/05/13/us-bonds-us-china-trade-tensions-remain-in-focus.htmlCurrencies:
https://www.cnbc.com/2019/05/13/forex-market-us-china-trade-war-g20-summit-in-focus.htmlOil:
https://www.cnbc.com/2019/05/13/oil-market-us-china-trade-war-global-economy-in-focus.htmlGold
https://www.cnbc.com/2019/05/13/gold-market-us-china-trade-talks-tariff-war-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
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