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MARKET MOVERS DOW 30 NASDAQ 100 SECTORS

Dow drops 600 points on fears

of slowing economic growth,
banks lead the decline
 Fred Imbert | @foimbert
Published 7 Hours Ago | Updated 15 Mins Ago



by Taboola
 Stocks still have one more hurdle before the
'bullish promised land,' Cramer says
Made in China: Here are the cars at risk of being
pulled from US market in Trump trade war
If you invested $1,000 in bitcoin 2011, you'd be a
millionaire. A few months ago? You're in the red
Stocks giving back chunk of trade
 gains  
2 Hours Ago | 01:28
Wall Street could get 7 percent out of 'Santa
Claus rally': Strategist
JP Morgan's market-moving strategist says rally
has further to go: 'Pain trade is on the upside'
Stocks fell on Tuesday as investors worried about a bond-market Cramer Remix: These recession-proof stocks are
phenomenon signaling a possible economic slowdown. Lingering worth buying on a pullback
worries around U.S.-China trade also sent jitters down Wall Street.
TRENDING NOW
The Dow Jones Industrial Average fell 600 points, led by losses in
Caterpillar. The S&P 500 declined 2.4 percent to trade below its 1. Dow drops 600
points on fears of
200-day moving average as the financials sector lagged. Utilities was slowing economic
the only positive sector in the S&P 500, rising 0.7 percent. The growth, banks lead
Nasdaq Composite also dropped 2.8 percent. the decline

"You can see the utilities positive on the day, but financials are
2. Michael Avenatti
announces he will
getting hammered on the flatter curve while industrials are likely
not run for president
down on the tariffs headlines," said Jack Ablin, founding partner of
in 2020
Cresset Wealth.

3.
The yield on the three-year Treasury note surpassed its five-year Alexandria Ocasio-
counterpart on Monday. When a so-called yield curve inversion Cortez: I paid twice
happens — short-term yields trading above longer-term rates — a as much for
recession could follow, though it is often years away after the signal insurance as a
waitress as I will in
triggers.
Congress
Long-term rates fell to session lows around midday in New York
while short-term yields were little changed. 4. 'I am a Tariff Man':
Trump threatens to
restart trade war if
"We started the day at 2.95 percent. Just a couple minutes before
China talks fail
noon, the 10-year yield went from a 2.94 to a 2.92 percent yield.
That doesn't sound like much but that's closer to a yield inversion
and that's adding to the overall pressure in the stock market," said 5. Feds expand beef
recall as salmonella
Robert Pavlik, chief investment strategist at SlateStone Wealth.
outbreak broadens to
Jeffrey Gundlach, CEO of Doubleline Capital, told Reuters this 246 cases in 26
states
inversion signals that the economy "is poised to weaken."

Lower long-term rates put pressure on bank stocks. The SPDR S&P
Bank ETF (KBE) dropped 4.7 percent. Shares of J.P. Morgan Chase,
Citigroup and Bank of America all declined more than 3 percent.
The SPDR Regional Banking ETF dropped 5 percent and traded
around 20 percent below its 52-week high and was on pace for its
worst day since March 2017.

"No good deed goes unpunished," said Art Hogan, chief market
strategist at B. Riley FBR. "As we get headwinds from trade worries
fading, you get an inverted yield curve and another brick added to
the market's wall of worry."

Brendan McDermid | Reuters

Traders work on the floor at the New York Stock Exchange, November 28, 2018. 

Further fears of an economic slowdown were stoked by weaker-

than-expected quarterly guidance from Toll Brothers. The company
issued its forecast for the first quarter. Toll Brothers also pointed to
negative reports about the housing market as the cause for the
slowdown. New home sales have fallen for 11 straight months.

Doubt about a permanent deal between the U.S. and China crept
into investors' minds following a stellar rally in the previous session.

The U.S. and China agreed over the weekend to hold off on any
additional tariffs on each other's goods on January 1, in order to
allow trade talks to continue. Leaders from the two countries met
over dinner at the G-20 summit in Argentina. The news sent stocks
surging on Monday, with the Dow rallying more than 300 points.

But discrepancies over when that truce would begin has led to
confusion. While President Donald Trump's economic advisor,
Larry Kudlow, told reporters Monday that the cease-fire would start
from January 1, the White House later issued a corrected statement
saying that the 90-day truce period would start on December 1.

"Bottom line, yesterday's price action further confirmed that while

clearly there has been some important macro clarity provided, we
need to see more before we can expect the S&P 500 to make a
serious challenge to the old highs," said Tom Essaye, founder of The
Sevens Report.

China and the U.S. have been engaged in a tense sparring match
over trade, with both countries hitting each other's economies with
levies on imported goods. Trump's administration has so far slapped
tariffs on $250 billion worth of Chinese imports, while Chinese
President Xi Jinping's government has imposed tariffs on $110
billion in U.S. goods.

Trump said in a series of tweets Tuesday that a deal between the two
countries would get done if possible. "But if [it's] not possible
remember ... I am a Tariff man."

Donald J. Trump
@realDonaldTrump

The negotiations with China have already started. Unless

extended, they will end 90 days from the date of our wonderful
and very warm dinner with President Xi in Argentina. Bob
Lighthizer will be working closely with Steve Mnuchin, Larry
Kudlow, Wilbur Ross and Peter Navarro.....
33.7K 3:30 PM - Dec 4, 2018

12.2K people are talking about this

Donald J. Trump
@realDonaldTrump

......on seeing whether or not a REAL deal with China is actually

possible. If it is, we will get it done. China is supposed to start
buying Agricultural product and more immediately. President Xi
and I want this deal to happen, and it probably will. But if not
remember,......
25.5K 3:55 PM - Dec 4, 2018

8,633 people are talking about this

Donald J. Trump
@realDonaldTrump

....I am a Tariff Man. When people or countries come in to raid

the great wealth of our Nation, I want them to pay for the
privilege of doing so. It will always be the best way to max out
our economic power. We are right now taking in $billions in
Tariffs. MAKE AMERICA RICH AGAIN
48.8K 4:03 PM - Dec 4, 2018

27.3K people are talking about this

Donald J. Trump
@realDonaldTrump

.....But if a fair deal is able to be made with China, one that does
all of the many things we know must be finally done, I will
happily sign. Let the negotiations begin. MAKE AMERICA
GREAT AGAIN!
27K 4:10 PM - Dec 4, 2018

10.7K people are talking about this

—CNBC's Ryan Browne , Tom Franck and Michael Sheetz contributed to

this report.

Fred Imbert
Markets Reporter

RELATED SECURITIES

Symbol Price   Change %Change

NASDAQ 7266.43 -175.08 -2.35%

 
S&P 500 2733.84 -56.53 -2.03%
 
DJIA 25295.31 -531.12 -2.06%
 

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