Stocks Recoup Sharp Losses in US After Trump Jr. Emails Release

12:53 PM, Jul 11, 2017 — Stocks in the US were recouping sharp losses made earlier in the session but still trading mostly in the red on Tuesday afternoon as investors were jolted by politics once again.

The Dow Jones Industrial Average plunged more than 100 points after Donald Trump Jr. released an email exchange he had last year which showed claims that a Russian government lawyer was offering the Trump presidential campaign damaging information about rival Hillary Clinton. The Nasdaq Composite and the Standard & Poor’s 500 also retreated on the news.

While the markets recouped some of their losses, the reemergence of talk about Russian involvement in the US election has once again jolted investors and led to fears that the intrigue will distract from the Trump administration’s policy plans, which had sent markets to record highs after his election last November.

Investors are also watching the start Wednesday of semiannual testimony by Federal Reserve Chair Janet Yellen to lawmakers, seeking indications about when the Fed will start to unwind purchases of securities made during the financial crisis.

In Snap (SNAP) dropped 7.9% after Morgan Stanley downgraded the shares to equal weight from overweight and slashed its price target to $16 from $28. Michael Kors (KORS) slid 7.5% after it was started with a sell rating at MKM Partners with a $26 price target.

RCI Hospitality Holdings (RICK) gained 2.1% after saying third quarter total club and restaurant sales rose to $36.9 million from $33.1 million a year earlier. Masimo (MASI) rose 1.5% after its shares were initiated at Stifel Nicolaus with a buy rating and a $105 price target, while the average rating is a hold and an $83 target.

In afternoon trading, the S&P 500 was down 0.2% while the Dow and the Nasdaq were little changed.

Globally, the Hang Seng jumped 1.5%, the Nikkei 225 gained 0.5%, the FTSE 100 fell 0.6% and the Shanghai Composite slipped 0.3%.

 

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