US open: Stocks head south after Trump springs Mexican tariff surprise

Trading on Wall Street began with heavy losses after Donald Trump made a surprise announcement overnight that the US would impose tariffs on imports from Mexico.

As of 1505 BST, the Dow Jones Industrial Average was down 1.10% at 24,892.59, while the S&P 500 was 1.15% lower at 2,756.72 and the Nasdaq Composite was trading 1.35% weaker at 7,465.92.

The Dow opened 277 points lower following the news, which itself came amidst reports that China could be readying fresh retaliatory moves against the US.

Hu Xijin, the editor of Chinese tabloid the Global Times, tweeted: "Based on what I know, China will take major retaliative measures against the US placing Huawei and other Chinese companies on Entity List.

"This move indicates Beijing will not wait passively and more countermeasures will follow."

Elsewhere, Bloomberg revealed that Beijing had a plan in place to restrict exports of rare earth materials to the US if the Asian power feels necessary to do so.

The measures were said to be focused on heavy rare earths, used in vehicles and many consumer products.

With China still in mind, market participants were also coming to terms with negative economic data out of the country, as manufacturing activity contracted in May, weighed down by weaker export orders as a result of the escalating trade tensions with Washington.

On the US data front, income growth and spending in the US picked up by more than expected last month pointing to a pick up in consumption over the second quarter, with prices set to remain not far from the Federal Reserve's definition of price stability.

According to the Department of Commerce, in nominal terms, personal incomes grew at a month-on-month clip of 0.5% in April, beating forecasts for an increase of 0.3%.

Personal consumption expenditures also rose more quickly than anticipated, jumping by 0.3% (consensus: 0.2%), and the previous month's rise was marked up by two-tenths of a percentage point to reveal a jump of 1.1%.

US consumer prices increased by more than they had in 15 months during April, going a way to support the Federal Reserve’s assertion that low inflation readings were transitory, allowing it to keep interest rates unchanged for a time.

Elsewhere, a closely-followed gauge of factory sector activity in the Chicago area edged past forecasts in May, but on longer time frames was said to be pointing to softness ahead, although not outright weakness.

Market News International's manufacturing sector Purchasing Managers Index rose from a reading of 52.6 for April to 54.2, narrowly beating forecasts on the Street for a print of 54.0.

Lastly, US consumer sentiment for May came to a final reading of 100 - shy of the initial 102.4 reading but ahead of April's figure of 97.2.

Things were quite light on the corporate side of the ledger, with Big Lots shares ahead at the bell after blowing past earnings estimates and Uber shares advancing 2.29% in early trade despite reporting a $1bn loss on Thursday night in its first quarterly results since a disappointing initial public offering earlier in the month.

Elsewhere, Currency Exchange International and Elastic NV will report earnings later in the session.

Dow Jones - Risers

Walt Disney Co. (DIS) $132.07 -0.09%
Travelers Company Inc. (TRV) $145.54 -0.13%
Coca-Cola Co. (KO) $49.04 -0.43%
3M Co. (MMM) $159.81 -0.48%
Home Depot Inc. (HD) $190.06 -0.53%
Apple Inc. (AAPL) $177.35 -0.53%
McDonald's Corp. (MCD) $198.09 -0.58%
Pfizer Inc. (PFE) $41.59 -0.74%
Chevron Corp. (CVX) $114.52 -0.75%
Visa Inc. (V) $161.47 -0.79%

Dow Jones - Fallers

Verizon Communications Inc. (VZ) $55.06 -3.12%
Dowdupont Inc. (DWDP) $30.28 -2.86%
Cisco Systems Inc. (CSCO) $52.33 -2.32%
Walgreens Boots Alliance, Inc. (WBA) $49.41 -2.26%
Goldman Sachs Group Inc. (GS) $183.53 -2.05%
Nike Inc. (NKE) $77.85 -1.78%
Caterpillar Inc. (CAT) $119.69 -1.76%
United Technologies Corp. (UTX) $126.14 -1.76%
Boeing Co. (BA) $344.35 -1.58%
International Business Machines Corp. (IBM) $127.54 -1.57%

S&P 500 - Risers

Crown Castle International (CCI) $130.16 1.93%
Sba Communications Corp. (SBAC) $215.95 1.57%
Newmont Mining Corp. (NEM) $32.59 1.56%
American Tower Corp (Reit) (AMT) $207.55 1.40%
Dish Network Corp. (DISH) $35.14 1.09%
Public Storage (PSA) $235.51 0.96%
Dollar Tree Inc (DLTR) $99.07 0.77%
Take-Two Interactive Software Inc. (TTWO) $107.75 0.71%
Extra Space Storage (EXR) $106.24 0.55%
Amer Water Works (AWK) $112.52 0.52%

S&P 500 - Fallers

Gap Inc. (GPS) $17.70 -14.05%
Constellation Brands Inc. Class A (STZ) $174.66 -6.74%
Kansas City Southern (KSU) $111.09 -6.39%
Mattel Inc. (MAT) $9.96 -6.13%
Align Technology Inc. (ALGN) $280.02 -5.62%
Perrigo Company plc (PRGO) $40.95 -4.94%
Alexion Pharmaceuticals Inc. (ALXN) $114.66 -4.84%
Macerich Co (MAC) $35.33 -4.36%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $314.50 -4.25%
Whirlpool Corp. (WHR) $114.81 -4.16%

Nasdaq 100 - Risers

Dish Network Corp. (DISH) $35.14 1.09%
Dollar Tree Inc (DLTR) $99.07 0.77%
Take-Two Interactive Software Inc. (TTWO) $107.75 0.71%
Marriott International - Class A (MAR) $124.89 0.19%
Ross Stores Inc. (ROST) $92.99 0.10%
NetEase Inc. Ads (NTES) $249.43 0.07%
QUALCOMM Inc. (QCOM) $66.61 0.03%
Monster Beverage Corp (MNST) $62.28 0.01%
Shire Plc Ads (SHPG) $179.20 0.00%
Twenty-First Century Fox Inc Class B (TFCF) $49.61 0.00%

Nasdaq 100 - Fallers

Align Technology Inc. (ALGN) $280.02 -5.62%
Alexion Pharmaceuticals Inc. (ALXN) $114.66 -4.84%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $314.50 -4.25%
Western Digital Corp. (WDC) $38.03 -3.61%
Wynn Resorts Ltd. (WYNN) $107.41 -3.61%
Regeneron Pharmaceuticals Inc. (REGN) $297.40 -3.43%
Seagate Technology Plc (STX) $42.57 -3.07%
Intuitive Surgical Inc. (ISRG) $463.71 -2.83%
Facebook Inc. (FB) $178.43 -2.50%
Mylan Inc. (MYL) $16.78 -2.50%