WASHINGTON (dpa-AFX) - After moving mostly higher early in the session, stocks have given back ground over the course of the trading day on Thursday. The major averages have pulled back well off their highs of the session, with the Dow sliding firmly into negative territory.
Currently, the major averages are turning in a mixed performance. While the Dow is down 236.92 points or 0.5 percent at 43,956.20, the S&P 500 is up 2.49 points or less than a tenth of a percent at 6,347.55 and the Nasdaq is up 124.39 points or 0.6 percent at 21,293.82.
The early strength on Wall Street came after President Donald Trump announced a 100 percent tariff on imports of semiconductors and chips but said companies that are 'building in the United States' would be exempt.
'The good news for companies like Apple is if you're building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,' Trump said.
'So in other words, we'll be putting a tariff on of approximately 100 percent on chips and semiconductors,' he added. 'But if you're building in the United States of America, there's no charge.'
The announcement of the tariff on semiconductors and chips came as Apple (AAPL) CEO Tim Cook joined Trump to confirm the company plans to invest another $100 billion in the U.S.
After helping to lead the markets higher on reports of the investment on Wednesday, shares of Apple are jumping by another 3.1 percent.
Buying interest has waned over the course of the session, however, as traders continue to express concerns about the economic impact of Trump's trade policies as new tariffs on dozens of countries take effect today.
A steep drop by shares of Intel (INTC) may also be weighing on the markets, with the semiconductor giant tumbling by 3.3 percent after Trump called on CEO Lip-Bu Tan to resign immediately, calling him 'highly conflicted.'
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 2nd.
The Labor Department said initial jobless claims climbed to 226,000, an increase of 7,000 from the previous week's revised level of 219,000.
Economists had expected jobless claims to inch up to 221,000 from the 218,000 originally reported for the previous week.
A separate report released by the Labor Department this morning showed a significant rebound by labor productivity in the second quarter.
Sector News
Pharmaceutical stocks have shown a substantial move to the downside on the day, dragging the NYSE Arca Pharmaceutical Index down by 2.6 percent to its lowest intraday level in nearly three months.
Eli Lilly (LLY) is leading the sector lower, plunging by 14.3 percent despite reporting better than expected second quarter results and raising its full-year guidance. Results from a late-stage trial of the company's obesity pill have seemingly disappointed investors.
Healthcare and networking stocks have also moved notably lower, while semiconductor stocks are seeing significant strength, driving the Philadelphia Semiconductor Index up by 1.6 percent.
Utilities stocks are also turning in a strong performance on the day, as reflected by the 1.2 percent gain being posted by the Dow Jones Utility Average.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Thursday. Japan's Nikkei 225 Index advanced by 0.7 percent, while China's Shanghai Composite Index crept up by 0.2 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is down by 0.7 percent, the French CAC 40 Index is up by 1.0 percent and the German DAX Index is up by 1.2 percent.
In the bond market, treasuries have shown a lack of direction over the course of the session. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.231 percent.
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