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

FILE PHOTO: Tencent's booth is pictured at the GMIC in Beijing

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