Markets Now: Dow Drops 105 Points as Turkey Finally Matters


Markets Now: Dow Drops 105 Points as Turkey Finally Matters

Andrew Cummings
August 12, 2018

The S&P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 87 new highs and 102 new lows.

The S&P 500 was in slightly positive territory most of the day, putting it once again close to the record high it hit January 26.

USA stock index futures fell about half a percent on Friday, tracking global shares, as the Turkish lira tumbled on concerns over the country's economy and its deepening rift with the United States.

Tesla's shares rose 0.7 percent. The S&P 500 erased 0.075 point, or 0.03 per cent, to 2,857.70, Xinhua news agency reported.

The Russell 2000 is up 17.52 points, or 1 percent.


The Toronto Stock Exchange's S&P/TSX fell 90.47 points, or 0.55 per cent, to 16,326.51, led lower by the health care, consumer staples and utilities sectors.

The slide followed a tweet from US President Donald Trump announcing he was doubling US tariffs on Turkish steel and aluminium.

At 2:47 p.m. (1847 GMT), the Dow Jones Industrial Average was down 270.25 points, or 1.06 percent, to 25,238.98, the S&P 500 had lost 25.21 points, or 0.88 percent, to 2,828.37 and the Nasdaq Composite had dropped 65.17 points, or 0.83 percent, to 7,826.61.

"It was a classic risk-off move", said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey.

Turkey's lira touched a record low against the dollar, weakening 4 percent in 24 hours after meetings in Washington looked to have made little progress in mending a row over Ankara's jailing of an American pastor.


Bookings Holdings (BKNG.O) fell 5.9 percent and weighed the most on the S&P and the Nasdaq after it forecast third-quarter profit below expectations.

The Russell 2000 is up 155.38 points, or 10.1 per cent.

About 5.9 billion shares changed hands on U.S. exchanges.

Declining issues outnumbered advancing ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.10-to-1 ratio favoured advancers. Excluding the energy sector, the earnings growth estimate declines to 20.4 per cent.


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