Boeing, Caterpillar, 3M stocks account for more than half Dow’s afternoon skid as trade tensions rattle
The Dow Jones Industrial Average Tuesday afternoon was holding firmly lower, with the lion’s share of the benchmark’s decline tied to companies most sensitive to escalating trade conflagrations. Boeing Co. , down 3.7% or $13.30, Caterpillar Inc. , decline by 3.6% lower or $5.34, and 3M Co. shares, shedding 2.1% or $4.25, were combining to produce a 154-point headwind for the price-weighted blue-chip gauge, representing more than half of Tuesday’s 270-point decline. A $1 move in any one of the Dow’s 30 components equates to a swing of 6.89 points. President Donald Trump raised the stakes in the U.S.’s trade conflict with China late Monday, asking his administration to draw up a fresh list of Chinese goods worth $200 billion on which to impose tariffs and promising a fresh $200 billion in tariffs if Beijing retaliates. Industrial companies including 3M, Caterpillar and Boeing which all do business internationally have been vulnerable to rising tensions between the world’s biggest economies. Investors fret that the current tit-for-tat status of the trade conflict between the pair could devolve into a full-blown tariff war and ripple through markets across the globe. Most recently, the Dow was off 1.1%, off its lows of the session, the S&P 500 index was 0.4% lower, while the Nasdaq Composite Index was declining by 0.3%.