US STOCKS-Wall St falls as CSX results point to damage from trade tensions

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* Dow transports fall 3.2%

* Fed's Beige Book points to trade concerns

* Bank of America rises after earnings beat

* Indexes down: Dow 0.25%, S&P 0.39%, Nasdaq 0.17% (Updates to late afternoon, changes byline, adds NEW YORK todateline)

By April Joyner

NEW YORK, July 17 (Reuters) - U.S. stock indexes dipped onWednesday as weak results from CSX Corp stoked concerns that theprotracted trade war between the United States and China couldhurt corporate earnings.

CSX CSX.O shares tumbled 9.9% and were set for theirbiggest one-day drop since 2008 after the rail freight companyposted lower-than-expected quarterly profit and cut itsfull-year revenue forecast. Ongoing trade tensions havecontributed to a decline in truck and rail freight volumes inthe first half of 2019. urn:newsml:reuters.com:*:nL2N24H1M5

The losses in CSX shares helped push down the S&P 500industrials index .SPLRCI , whose 1.9% slide was the largestamong the S&P's 11 major sectors. The Dow Jones TransportationAverage .DJT fell 3.2%.

The Federal Reserve's Beige Book, a compendium of anecdotesfrom U.S. businesses, also pointed to trade-related pressures ontransportation and manufacturing companies. urn:newsml:reuters.com:*:nFOMHIEF5B

Despite a pause on additional U.S. tariffs on Chinese goods,"none of the underlying issues have really been put to bed,"said Ed Campbell, portfolio manager and managing director at QMAin Newark, New Jersey. "It's a risk factor that could come backat any time."

Indeed, on Tuesday, President Donald Trump said he couldimpose tariffs on additional Chinese goods at any time.

But persistent trade-related concerns are a critical factorsupporting expected interest-rate cuts from the Federal Reservelater this month, Campbell said. The anticipation of rate cutshas helped propel U.S. stocks to new highs in the past week.

"One of the things Trump is doing with trade is he's usingit as a cudgel against the Fed," he said. "The Fed is citinguncertainty relating to trade as a reason they're open tocutting rates."

The Dow Jones Industrial Average .DJI fell 67.45 points,or 0.25%, to 27,268.18, the S&P 500 .SPX lost 11.8 points, or0.39%, to 2,992.24 and the Nasdaq Composite .IXIC dropped13.76 points, or 0.17%, to 8,209.03.

In addition to CSX, shares of other rail companies fell.Union Pacific CorpUNP.N shares dropped 6.2%, Norfolk SouthernCorp NSC.N shares slid 6.3% and Kansas City SouthernKSU.N shares slipped 4.4%.

Union Pacific and Kansas City Southern will report resultson Thursday and Friday, respectively.

Bank of America CorpBAC.N rose 2.0% after posting aprofit beat, though the company lowered its annual net interestincome forecast. urn:newsml:reuters.com:*:nL4N24I2H5

Profit for S&P 500 companies is expected to rise 0.4% in thesecond quarter from a year ago, according to Refinitiv IBESdata.

Abbott LaboratoriesABT.N shares rose 3.3% after themedical device maker topped quarterly profit estimates andlifted its full-year adjusted earnings forecast. urn:newsml:reuters.com:*:nL4N24I2MU

Qualcomm IncQCOM.O shares rose 0.8% after the U.S.Justice Department asked a federal appeals court to pause theenforcement of a sweeping antitrust ruling against the mobilechip supplier. urn:newsml:reuters.com:*:nL2N24H1S1

Declining issues outnumbered advancing ones on the NYSE by a1.55-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favored decliners.

The S&P 500 posted 25 new 52-week highs and two new lows;the Nasdaq Composite recorded 51 new highs and 77 new lows. (Reporting by April Joyner; Additional reporting by Medha Singhand Uday Sampath Kumar in Bengaluru; Editing by SaumyadebChakrabarty, Shounak Dasgupta and Jonathan Oatis) ((April.Joyner@thomsonreuters.com; +1 646 223 7480; ReutersMessaging: april.joyner.thomsonreuters.com@reuters.net; Twitter:@aprjoy))

This article appears in: Stocks , World Markets , Politics
Referenced Symbols: ABT ,

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