US stocks set to plunge on new Trump trade threats against China


Global markets were awash in red this morning after President Donald Trump ratcheted up trade pressure on China, asking the U.S. trade representative late Monday to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. (CNBC)

The Dow, already on a five-session losing streak, was set to plunge more than 300 points at the open, threatening to put the blue-chip average into negative territory for the year. Bond yields were dropping. Oil prices were also lower. (CNBC)

* 'Belligerent' US trade stance could hurt America's iconic companies the most: Jim O'Neill (CNBC)
* Billionaire investor Jim Mellon: Sharp sell-off in US stocks is the beginning of a 'very major correction' (CNBC)

The worst stock selling was in Asia overnight, with the Shanghai composite and Shenzhen composite sinking 3.8 percent and 5.77 percent respectively. The Greater China markets were on holiday Monday, and got their first crack at reacting to last week's tariff measures. (CNBC)

The 25 percent tariff on up to $50 billion of Chinese products that President Trump announced Friday against Chinese imports are set to start July 6. China plans to retaliate, saying the U.S. 'initiated a trade war' and Beijing is not afraid to fight back. (CNBC)

* China's ZTE sinks 23% after Senate defies Trump and votes to reimpose sanctions (CNBC)

Apple's (AAPL) iPhones would not be subject to new tariffs on phones assembled in China, according to a New York Times report. The paper said President Trump had made that commitment to Apple CEO Tim Cook in a meeting last month.

On the U.S. economic calendar, the government releases May housing starts at 8:30 a.m. ET. Forecasts call for a 1.8 percent increase to an annual rate of 1.31 million units. After the bell, earnings from Oracle (ORCL), FedEx (FDX) and La-Z-Boy (LZB) are out. (CNBC)


President Trump this evening will huddle with House Republicans in a rare conference meeting on immigration, seeking to clarify his support for a newly released GOP bill shielding so-called dreamers from deportation. (Politico)

Homeland Security Secretary Kirstjen Nielsen defended the Trump administration's "zero-tolerance" immigration policy, which has resulted in the separation of thousands of children and their parents along the U.S.-Mexico border. (CNBC)

* UN refugee boss: I'm 'very concerned' about US separating migrant children (Reuters)

North Korean leader Kim Jong Un arrived today in Beijing, where he will likely brief Chinese President Xi Jinping on his summit with President Trump last week, as Washington and Seoul agreed to suspend a major joint military exercise. (Reuters)

Federal prosecutors charged an ex-CIA employee with espionage violations in connection with last year's leak to an unnamed organization, believed to be WikiLeaks, of a collection of hacking tools that the agency used for spy operations overseas. (Washington Post)

Obamacare should be repealed in August and replaced with a new system that lifts national consumer protections and gives control of health care to the states, according to a proposal by a conservative group set to be released today. (WSJ)

Tesla (TSLA) CEO Elon Musk sent an email to workers saying an unnamed employee had engaged in "extensive and damaging sabotage." Musk said the electric automaker is investigating whether the employee was working with any outside organizations. (CNBC)

Amazon (AMZN) is partnering with Marriott (MAR) to help increase guest access to amenities with Alexa, through its voice-controlled device Echo, in an attempt to expand its presence in the hospitality industry. (Reuters)

* Jeff Bezos now worth a record $141 billion (CNBC)

The combined wealth of the world's millionaires rose for a sixth straight year, topping $70 trillion for the first time ever in 2017 thanks to an improving global economy and strong stock market performance, according to a report. (USA Today)


Wells Fargo (WFC) is considering a combination of its private client and wealth brokerage services units. Both divisions target affluent clients and many of their functions overlap.

AT&T (T) is promising fewer commercials, smaller channel bundles and personalized programming following its buyout of Time Warner, according to John Stankey, CEO of the newly renamed WarnerMedia unit.

Foundation Medicine (FMI) is being bought out by Swiss drug giant Roche in a $2.4 billion deal worth $137 per share. Roche had already owned 57 percent of the U.S.-based molecular diagnostic test-maker.

Sirius XM Holdings (SIRI) was downgraded to hold from buy at Pivotal Research in a valuation call. Pivotal's target price for the satellite radio operator's stock remains at $7.75 per share.


Match Day 6 at the World Cup in Russia features Colombia versus Japan. On Monday, England opened its campaign with a 2-1 victory over Tunisia. However, the go-ahead goal didn't come until stoppage time. (Fox Sports)