Stocks get whacked after Tencent’s rare profit decline raises growth concerns

FILE
PHOTO: Tencent’s booth is pictured at the GMIC in
Beijing
Thomson
Reuters

Stocks fell Wednesday after the Chinese technology giant Tencent
reported a rare profit decline. Technology and energy companies
took the biggest hits following the disappointing earnings
report, which stoked fears of slowing growth. The dollar rose,
and Treasury yields fell. 

Here’s the scoreboard:

Dow Jones industrial
average: 25,161.45 −138.47 (-0.55%)

S&P
500: 2,818.98 −20.98
(-0.74%)

Nasdaq
Composite: 7,774.93 −95.96
1.22%)

1. Amid escalating tensions between Washington and Ankara,
   
   Turkey hiked tariffs on American imports including
   vehicles, tobacco and alcohol. The Trump
   administration had last week announced it would double tariffs
   on Turkish steel and aluminum. Following Turkey’s announcement,
   the country secured
   a $15 billion investment from Qatar.
2. Federal securities regulators
   sent
   subpoenas to Tesla after CEO Elon Musk tweeted about plans
   to take the company private last week. “Am
   considering taking Tesla private at $420. Funding secured,”
   Musk said in the tweet that is under scrutiny for possibly
   breaking federal securities law. Goldman Sachs is advising Musk
   on his privatization plans.
3. US retail activity sped up more than expected last
   month.
   Retail sales jumped a seasonally adjusted 0.5% in July from
   a month before, the Commerce Department said, beating economist
   forecasts for a 0.1% rise. 
4. Earnings season rolls on.
   Tencent reported its first profit decline in 13 years.
   Macy’s
   disappointed with a decline in total sales. Uber, a private
   company, narrowed its losses from a year earlier but still saw
   slowing growth.

And a look at the upcoming economic calendar:

• Building permit and housing start numbers are out in the US.
• Walmart
  and Nvidia
  report earnings.