- News of new tariffs sends S&P 500 and Dow Jones lower
- Tesla stocks drop after Tuesday’s strong rise
- Walt Disney, Snap, Papa John’s drop while CVS Health Corp. strengthens
US stock markets traded mostly sideways yesterday, with robust corporate earnings being largely cancelled out by the ongoing trade war between the US and China.
The S&P 500 dropped by 0.03%. The Dow Jones Industrial Average ended 0.18% lower at 25,584, while the Nasdaq strengthened by 0.06%.
Markets were negatively affected yesterday by the announcement that the US plans to impose 25% tariffs on $16bn more of Chinese imports within the next two weeks. China immediately retaliated by announcing 25% tariffs on an additional $16bn of US products.
Tesla stocks dropped 2.4% yesterday following their largest single-day increase since 2014, with some investors appearing to question Elon Musk’s plan to take the firm private.
Tesla shares surged 11% and closed at $379.57 on Tuesday after Musk wrote on Twitter that he was considering taking the company private at $420 per share, adding that the necessary funding was in place.
He complained about the negative effect a fluctuating share price had on workers and shareholders, and the undue pressure quarterly earnings reports placed on the company.
In other market news, Walt Disney published disappointing quarterly results and the share price subsequently dropped 2.2%.
Snap Inc. shares dropped 6.7% yesterday despite higher-than-expected revenue and a narrower loss for Q2. Daily active users, however, dropped by 2% for the first time ever.
Papa John’s International Inc. reported earnings for Q2 that were lower than expected and reduced its earnings forecasts for 2018. Its share price dropped 5.2%.
CVS Health Corp.’s Q2 earnings of $1.69 per share exceeded expectations of $1.61, and it increased the lower end of its 2018 guidance. The share price increased by 4%.