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The actions of the EE. USA They were to fall on Monday when a dispute between EE. USA And China on the origins of the coronavirus outbreak worsened as billionaire Warren Buffett’s admission that he had abandoned his airline actions crushed major US airlines.
Delta Air Lines, American Airlines Co, Southwest Airlines Co and United Airlines fell 9-11% in the previous market, after Berkshire Hathaway chief Buffett told reporters about the move over the weekend. week, saying that “the world has changed” for the industry.
The comments, and the slump by airline operators, also slashed more than 4.7% of the shares of aircraft maker Boeing Co.
Berkshire itself recorded a record loss of nearly $ 50 billion and Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, said Buffett’s relatively grim reading of the market had affected investors.
“I didn’t get the feeling that he sees a tremendous amount of opportunity right now, but that he’s withholding a very high level of cash,” he said.
In China, US Secretary of State Mike Pompeo said there was “a significant amount of evidence” that the coronavirus emerged from a Chinese laboratory. An editorial in China’s Global Times said Pompeo was “bluffing.”
The remarks follow a grim start to May for Wall Street last week when President Donald Trump revived the threat of new tariffs against China in response to the COVID-19 pandemic.
“When you think about how nervous the markets were about the US-China trade war, if this topic continues you can’t help but think the end game is much worse than a simple trade war would be,” said Jim Reid, strategist. . at Deutsche Bank.
The S&P 500 index’s 29% recovery from its March lows is being tested as investors weigh on renewed tensions between the United States and China and the economic damage of the health crisis.
At 8:51 a.m. ET, Dow e-minis were down 225 points, or 0.95%, S&P 500 e-minis were down 18.5 points, or 0.66%, and Nasdaq 100 e-minis were down 52.5 points, or 0.60%.
Investors also expect factory order data for March, which is expected to show a sharp decline.
With more than half of S&P 500 companies reporting earnings so far, analysts now see first-quarter S&P 500 earnings fell 12.7% from a year earlier, and an even greater decline of 37.8% for the second trimester.
Tyson Foods Inc fell 7.3% as the company said it would temporarily close plants as needed and expects meat sales to drop in the second half of this year as closures close restaurants and other food outlets. .
This story has been published from a cable agency source without modification to the text. Only the owner has been changed.
