Dow Jones down on weak earnings, Trump’s DOJ threatens tariff evaders
S&P 500 and Nasdaq fell from record highs after the DOJ announced it would be going after tariff evaders.
- Stocks fell on weak earnings.
- The labor market also weakened.
- Trump’s DOJ puts tariff evaders on notice.
Major U.S. stock indices fell on weak labor market data and ongoing trade uncertainty. On Tuesday, July 29, the Dow Jones fell 130 points, or 0.29%, dragged down by weak performance from major healthcare firms. At the same time, the S&P 500 was down 0.11%, while the tech-heavy Nasdaq slipped 0.09%.
Markets remain focused on earnings, with Boeing reporting stronger-than-expected results. However, streaming platform Spotify missed expectations, with its stock plunging 12%. Shares of healthcare giants Merck and UnitedHealth also fell, as earnings failed to impress investors. Merck was down 3.38% despite an earnings beat, while UnitedHealth lost 4.94% after acknowledging a legal probe into its insurance practices.
Traders were also concerned with the job market slowing down, as both new openings and hiring fell in June. The Bureau of Labor’s JOLTS data showed that there were 7.44 million new job openings in June, lower than the expected 7.5 million and down from 7.7 million in May.
Trump’s DOJ puts tariff evaders on notice
Markets are also under pressure due to ongoing uncertainty over President Donald Trump’s “Liberation Day” tariffs. On Tuesday, the Justice Department stated that it would put high priority on prosecuting companies that seek to evade tariffs. This decision comes even as the courts are still deciding on the matter.
Punitive tariffs, in some cases higher than 100%, have been challenged in the U.S. courts. In particular, courts are deciding on whether or not the U.S. President has the authority to enact these tariffs as an emergency measure under executive order. For now, the tariffs remain in place until the court decides the broader issue.
