Stocks pulled back on more trade talk. At the close the Dow was off 190 to 26,150 on heavier trading volume. The NASDAQ was also lower but trading volume declined.
The markets fell after the US indicated it could focus on trade issues with Europe after it concludes its trade negotiations with China. Back in 2004, the US accused Europe of giving unfair subsidies to Airbus and took the case to the WTO which, after 14 years of litigation, found that these subsidies had caused “adverse effects” to the US. US trade officials drew up about $11 billion in tariffs to counter the subsidies and the EU is now seeking arbitration and might apply counter tariffs should the US move ahead with its list. The announcement was unexpected, and sparked fears of a potential trade war with Europe.
Shares of Boeing continue to weigh on the Dow as the company reported its first quarter order total which came in at 95 aircraft down from 180 this time last year. There were no new orders for 737 max jets as it appears buyers are taking a wait and see approach pending the software fix. Airbus, meanwhile, posted 62 gross orders for the first three months of 2019 but after 120 cancellations was left with a negative net order figure. Most of Airbus orders were for the A350 series.