FYI: ( Early tomorrow I'll be linking my 30,000 link to MFO Discussion. So get up early and enjoy a free cup of coffee in your MFO coffee mug compliments of Hank & Old_Joe. Bee is bringing the honey, Catch 22 has promised to bake cookies, and Gary is providing paper plates. David will give us another geography lesson, Charles is bringing his pet owl.)
U.S. stocks fell again Friday, deepening their losses for the week, as investors overlooked an in-line jobs report and focused on earlier threats by President Trump to extend tariffs to essentially all Chinese imports.
The escalation in trade tensions sent major stock indexes around the world tumbling and sparked the worst one-day drop in oil prices since 2015. As investors sold stocks, they flocked to assets viewed as relatively safe, such as government bonds, the U.S. dollar and gold.
On Friday, the S&P 500 fell 0.73%, while the Dow Jones Industrial Average lost 98 points, or 0.37%. Both indexes are down more than 2.8% this week, on pace for their worst performances in months.
Benchmarks in Japan and Hong Kong retreated more than 2%, while stocks also dropped in countries that are big trading partners with China, such as Germany and France, and could be impacted by slowing growth there.
The yield on the 10-year U.S. Treasury note fell to 1.881% from 1.894% on Thursday, its lowest yield since the 2016 presidential election. In the months following the election yields rose as investors bet that massive tax cuts and infrastructure spending would stimulate growth and inflation. All those gains have since disappeared.
Friday followed one of the most volatile days in months for U.S. stocks and bonds, triggered by a surprise pronouncement by Mr. Trump that effective Sept. 1 the U.S. will place new tariffs on $300 billion in Chinese goods—including smartphones, clothes, toys and other consumer products. They would come on top of tariffs already imposed on $250 billion in imports from China.
U.S. employers added 164,000 jobs in July, the Labor Department said Friday. The jobless rate held steady at 3.7%. Economists surveyed by The Wall Street Journal anticipated that 166,000 jobs were added to payrolls and that the unemployment rate fell to 3.6%. Stocks barely reacted to the data.
In the foreign-exchange markets, the Japanese yen gained 0.7% against the U.S. dollar after rising 1.3% overnight, its biggest single-day gain in more than two years.
The Nikkei 225 declined 2.1% on Friday, ending the week 2.6% lower. The Hang Seng dropped 2.3%, putting its weekly loss at 5.2%, its largest one-week decline since February 2018.
In Europe, the Stoxx Europe 600 fell 2.6%, its biggest drop since December 2018, led by losses in the basic resources and autos sectors, which were both down by more than 3%.
In commodities, global oil benchmark Brent crude rose 3.1% to $62.35 a barrel, as it partially recovered from a sharp fall Thursday following Mr. Trump’s tariff threat. Gold gained 1.8%.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/stock-futures-extend-tariff-inspired-decline-ahead-of-july-jobs-report-2019-08-02/printWSJ:
https://www.wsj.com/articles/fresh-trump-tariff-threat-roils-investors-around-world-11564714274Bloomberg:
https://www.bloomberg.com/news/articles/2019-08-01/asia-stocks-set-to-slide-on-fresh-tariff-shock-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-loses-707-points-for-week-as-trump-roils-stock-market/CNBC:
https://www.cnbc.com/2019/08/02/stock-market-dow-futures-slightly-lower-after-trumps-tariff-threat.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-drops-to-one-month-low-on-trade-growth-fears-idUSKCN1US1D2U.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-endures-worst-day-of-2019-brexit-worries-hit-rbs-idUKKCN1US0SBEurope:
https://www.reuters.com/article/us-europe-stocks/trumps-china-tariff-drives-european-stocks-to-worst-day-in-seven-months-idUSKCN1US0V5Asia:
https://www.cnbc.com/2019/08/02/asia-markets-us-china-trade-war-japan-south-korea-dispute-in-focus.htmlBonds:
https://www.cnbc.com/2019/08/02/us-bonds-trump-imposes-new-tariffs-on-china.htmlCurrencies:
https://www.cnbc.com/2019/08/02/forex-markets-us-china-trade-war-dollar-yen-in-focus.htmlOil:
https://www.cnbc.com/2019/08/02/oil-markets-us-china-trade-war-in-focus.htmlGold:
https://www.cnbc.com/2019/08/02/gold-markets-us-china-trade-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 
