Markets Now: Blame Boeing---and Caterpillar and 3M---for the Dow's 287-Point Drop


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5:04 p.m. Boeing (BA), Caterpillar (CAT) and 3M (MMM) accounted for big chunk of the D ow Jones Industrial Average's drop on Tuesday. Together, these industrial companies, which are sensitive to escalating trade tensions, form almost 19% of the benchmark.

Shares of Boeing were down 3.8 % to $341.12, while Caterpillar dropped 3.6% to $143.3, and 3M fell 2.4% to $199.39. These firms generate significant portions of their sales in China. For instance, China accounts for a fifth of Boeing's jetliner deliveries.

The Dow Jones Industrial Average continued to get hit harder than the S&P 500 and the Nasdaq Composite. The Dow Jones Industrial Average slumped 287.26 points or 1.2%, to 24,700.21 while the S&P 500 fell 0.4% to 2762.57 and the Nasdaq Composite Index was dropped 0.3% or 21.44 to 7725.58.

Together, Boeing, Caterpillar and 3M contributed nearly 164 points to the price-weighted Dow's decline today.

The S&P 500 Looks Very Different Today Than It Did in 2009

3:50 p.m. How much has the market changed since it bottomed in 2009? A lot, according to data from Bank of America Merrill Lynch Chief Investment Strategist Michael Hartnett. In a report released yesterday, he showed the MSCI AC World Index's 10 biggest stocks as percentage of market cap in 2009 versus the 10 largest today. Only Exxon Mobil (XOM) is on both lists. -Reshma Kapadia


As Dow Tumbles 330 Points, Too Soon to Discuss a Comeback?

11:00 a.m. The SPDR S&P 500 ETF (SPY) opened down 0.92% this morning, the seventh drop of 0.75% or more since the high in January. So what comes next?

After four of those six previous opening declines, the S&P 500 finished higher than it opened, according to a note from Bespoke Investment Group. The two downside gaps of more than 1%, on Feb. 6 and April 4, were followed by the market index finishing the day significantly higher than it opened.

Most of the large downside opening gaps have been related to tariff threats from the Trump administration and China, the investment group said. On Monday, President Donald Trump t hreatened to impose new tariffs on $200 billion of Chinese goods.

All told, over the six prior large downside opening gaps, the S&P 500 had a median open-to-close gain of 0.53%.

The Dow Jones Industrial Average has slumped 335.71 points, or 1.3%, to 24,651.76, while the S&P 500 has dropped 0.8% to 2750.9 and the Nasdaq Composite has fallen 1.0% to 7672.09. - Karen Langley

7:45 a.m.Where'd he learn to negotiate like that ?

Stocks are getting pummeled this morning after President Donald Trump said he would seek an additional $200 billion of tariffs on Chinese goods, prompting a pledge of retaliation from China. For investors who've been betting that Trump's tariff threats were merely a negotiating tactic, it's suddenly looking more like a real trade war.

S&P 500 futures have dropped 1.2, while Dow Jones Industrial Average futures have tumbled 363 points, or 1.5%. Nasdaq Composite futures slumped 1.3%. Despite the losses, the CBOE Volatility Index, aka the VIX, aka the market's fear index, is showing little signs of fear: Its risen 17% to just 14.35, well below even last month's peak of around 17.

"As long as investors expect trade headwinds to be resolved and growth to remain firm into 2019, downside risk should be limited and helps explain why the VIX that is only at 14 this morning," explains Evercore ISI strategist Dennis DeBusschere. -Ben Levisohn

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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