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Dow, S&P turn lower as tariffs weigh on industrials

Reuters  |  NEW YORK 

By April Joyner

NEW YORK (Reuters) - The and the fell on Monday as worries about the signed into by weighed on industrial stocks.

Shares of companies such as , down 2.6 percent, and , down 2.3 percent, have been under pressure as Trump's protectionist stance on and aluminium imports could increase costs and hamper sales abroad. Boeing and Caterpillar were the biggest decliners on the Dow.

Trump last week softened his stance on tariffs by exempting and Mexico, but negotiations are ongoing as the and also seek exemptions.

"The big multinational, industrial companies of the world are all taking a hit on the concern that they will be the targets of reprisal sanctions," said Robert Phipps, a at Per in

Those losses were tempered by a report that is the leading candidate to replace Gary Cohn, Phipps said. Kudlow, like Cohn, is seen by some investors as a greater proponent of free trade than Trump's other

"That offered some comfort to the markets," said Phipps. "However, it's not enough of an offset to protect the companies that are susceptible to retaliation in a trade war."

The <.DJI> fell 122.02 points, or 0.48 percent, to 25,213.72, the <.SPX> lost 1.39 points, or 0.05 percent, to 2,785.18 and the <.IXIC> added 34.90 points, or 0.46 percent, to 7,595.71.

Even with the session's losses, the is just 3 percent below record highs hit on Jan. 26, while the Nasdaq <.IXIC> has recovered its losses from last month's sell-off.

The tech-heavy Nasdaq was lifted in part by further signs of of Ltd's $117 billion bid for U.S. graphics chipmaker Inc .

The said in a letter to Singapore-based that it had confirmed national security concerns about the bid and that the company had not given sufficient notice of its plans to redomicile in the

gained 3.7 percent while shares in were flat.

Shares of Micron rose 10.1 percent to $60.09 after analysts at Nomura raised their target for the stock to $100.

jumped 28.0 percent after and specialist said it would buy the for $1.7 billion. Lumentum's shares rose 5.5 percent.

Advancing issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favoured advancers.

(Additional reporting by in Bengaluru; Editing by and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 00:55 IST