Stocks plunge on trade fears: May 7, 2019

By CNN Business

Updated 6:17 p.m. ET, May 7, 2019
15 Posts
Sort byDropdown arrow
1:33 p.m. ET, May 7, 2019

How bad is today's selloff?

By CNN Business' David Goldman

If the Dow finishes the day at this level, it will be the second-worst trading day of the year.

In case you forgot: The worst day of 2019 was January 3, when the Dow fell 660 points.

What happened then? Apple warned that it would miss its quarterly sales forecast because of weakening growth and trade tensions in China.

1:26 p.m. ET, May 7, 2019

Dow is down nearly 500 points

From CNN Business' Anneken Tappe

We're into the second half of the trading day and the Dow has fallen 500 points.

Market sentiment isn't rosy. European stocks closed lower in their worst day since March 22, as investors assess the risk posed to the global economy if the US and China can't agree a trade deal.

Tuesday's market action was an example of "it's not what you say, it's what they hear," suggested Putri Pascualy, Managing Director for PAAMCO.

Trade war concerns have ebbed and flowed in the last eighteen months, that part isn’t new. What is new is market reaction. Previously investors happily shrugged trade risk, citing growth as a reason for bullishness. These days, risk factors aren’t being shrugged off so easily. The math on risk premia for multiple asset classes have changed," Pascualy said.
12:22 p.m. ET, May 7, 2019

Mylan's stock is getting absolutely clobbered

From CNN Business' Jordan Valinsky

Drugmaker Mylan's (MYL) stock is down 17% after it reported lower-than-expected revenue in its first quarter earnings report.

The EpiPen manufacturer reported total revenue of $2.5 billion, which was 7% lower compared to the same period a year ago. It also reported a net loss of $25 million for the quarter, a stark contrast to the $87.1 million profit it reported a year ago.

Mylan blamed its poor showing on the strong US dollar and problems with its Morgantown, West Virginia plant.

12:25 p.m. ET, May 7, 2019

Markets worldwide tumble

From CNN Business' Anneken Tappe

Tuesday's selloff was by no means limited to the US.

Around the world, stocks were doing a whole lot worse and European bourses closed lower.

  • The UK's FTSE 100, the French CAC 40 and Germany's Dax all closed 1.6% lower.
  • It was the worst day since March 22 for all three of the stock indexes, according to Refinitiv.
  • The pan-European Stoxx 600 Index ended Tuesday 1.5% lower, which was its worst day since February.

11:37 a.m. ET, May 7, 2019

Oil sinks 1.7% on trade drama

From CNN Business' Anneken Tappe

It's not just stocks that are getting battered by talk of more China tariffs. US oil futures are down 1.7%.

Of course, any trade negotiations could impact global growth, and that's weighing on financial markets all over.

A slowing world economy could put a dent in oil demand. Additionally, US sanctions on Iran and those who buy oil from Tehran has hurt supply.

Meanwhile, the US is sending an aircraft carrier to the Middle East, in an effort to deter any possible Iranian military action. US national security adviser John Bolton said there have been "troubling and escalatory indications and warnings" from the country.

Oil was last at $61.21 a barrel.

11:16 a.m. ET, May 7, 2019

McDonald's is the only stock on the Dow that's up

From CNN Business' Anneken Tappe

About an hour into trading, stocks are solidly in the red.

A slightly better than expected JOLTS report for March, recording 7.5 million job openings, didn't help matters.

McDonald's (MCD) is the only stock in the Dow that is in the green, according to Refinitiv. Its shares are 0.2% higher.

Boeing (BA) and Pfizer (PFE) lead the losers in the Dow, falling 2.3% and 2.1%, respectively.

In the S&P 500, Mylan (MYL) is the biggest loser, down nearly 14%. On the other end of the spectrum, a few companies are hanging on to gains, led by AIG (AIG), which is up 6.5%.

10:31 a.m. ET, May 7, 2019

Stock losses accelerate as Wall Street gets tariff whiplash

From CNN Business' Anneken Tappe

US stock market losses accelerated Tuesday morning, as financial markets grapple with the risk of an all-out trade war.

The DowS&P 500 and Nasdaq were all solidly in the red. The Dow was more than 300 points lower after about an hour of trading. The S&P 500 was down 1.3%% and the Nasdaq fell 1.3%, also both adding to their earlier losses.

On Sunday, President Donald Trump threatened further tariffs on Chinese imports, throwing global markets into disarray. Investors previously expected Beijing and Washington to be close to sorting out a trade deal after months of negotiations.

The "Goldilocks" investing environment of low inflation and high growth had calmed investors' nerves over the past several months. But political risk came back with a vengeance after the US-China trade negotiations seem to be on thinner ice than previously thought possible this late in the talks.

Read the full story here.

2:04 p.m. ET, May 7, 2019

Google I/O: What to expect from Google's big developer conference

From CNN Business' Samantha Murphy Kelly

Google (GOOGL) CEO Sundar Pichai will take the stage Tuesday at the company's annual Google I/O developer conference in Mountain View, California. Here's what we're expecting:

  • New hardware: cheaper versions of its flagship Pixel phone and a smart home hub upgrade
  • Software updates: updates to Google Assistant. We'll also likely learn more about its next-generation Android Q mobile operating system, which offers more shortcuts, privacy controls and multitasking features.
  • Lots of talk about AI, possible mentions of Android TV

The multi-day event is typically set up like an outdoor festival for developers, rather than a traditional conference. It usually hosts exhibits and a series of activities, such as a fake tattoo parlor and a roller rink. One night often ends with a performance from a well-known band. 

Google I/O coincides this year with another developer conference: Microsoft Build. Last week, Facebook (FB) held its F8 event where it outlined new strategies for privacy, rolled out a new platform design and logo, and gave updates on its Facebook Dating service.

9:39 a.m. ET, May 7, 2019

Stocks start lower

From CNN Business' Anneken Tappe

US stocks opened lower today, adding onto Monday's losses.

President Donald Trump's threats of further tariffs on Chinese imports worried investors around the world, pulling stocks lower.

  • The Dow opened 0.9%, or 241 points lower.
  • The S&P 500 started down 0.8%.
  • The Nasdaq kicked off 1% lower.

Anheuser-Busch InBev (BUD) 1.8% down after announcing it was considering an IPO for its Asia business.

Shares of Lyft (LYFT) opened little changed ahead of its first earnings as a public company, due after the bell today.