Stocks fall as trade tensions rise, US manufacturing weakens

Point View Wealth Management President David Dietze, H Squared Research’s Hitha Herzog and Wall Street Journal Associate Editor John Bussey on the impact of tariffs on the U.S. economy and markets, the future of the trade war with China, China saying it will sue the U.S. over tariffs through the WTO and reports Huawei.

Stocks fell Tuesday on Wall Street concerns about rising trade tensions between the U.S. and China and surprisingly weak data on American manufacturing.

New tariffs went into effect over the holiday weekend, and China said it will sue the U.S. using the World Trade Organization's dispute settlement mechanism.

"The US taxation measures are seriously contrary to the consensus of the heads of state of the two countries in Osaka," said China's Commerce Ministry in a statement.

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	44722.06	-138.25	-0.31%
I:COMP	NASDAQ COMPOSITE INDEX	19060.475899	-115.10	-0.60%
SP500	S&P 500	5998.74	-22.89	-0.38%

"China is strongly dissatisfied and resolutely opposed. In accordance with relevant WTO rules, China will firmly safeguard its legitimate rights and interests and resolutely defend the multilateral trading system and the international trade order.”

The major averages extend initial-session their losses after the Institute for Supply Management said its manufacturing index fell to 49.1 in August, making for its first contraction in three years.

The yield on the 10-year Treasury fell to 1.48 percent.

Ticker	Security	Last	Change	Change %
CAT	CATERPILLAR INC.	402.51	-3.60	-0.89%
BA	THE BOEING CO.	156.54	+1.10	+0.71%

Trade-sensitive names such as Caterpillar and Boeing were among the biggest laggards in the Dow.

Meanwhile, insurance stocks with exposure to Florida, like FedNat Holding Co. and Universal Insurance Holdings were rallying after Hurricane Dorian was projected to veer away from the state.

Ticker	Security	Last	Change	Change %
FNHC	NO DATA AVAILABLE	-	-	-
UVE	UNIVERSAL INSURANCE HOLDINGS	22.63	-0.16	-0.70%

Commodities were mixed with West Texas Intermediate crude oil under pressure while both gold and silver rallied.

Elsewhere, the British pound hit its lowest level since October 2016 after Prime Minister Boris Johnson threatened to call a snap election if lawmakers don’t back his plans for a no-deal Brexit.

Markets across Europe were in the red, with France's CAC pacing the decline.

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In Asia, China's Shanghai Composite gained 0.2 percent, Hong Kong's Hang Seng lost 0.4 percent and Japan's Nikkei was little changed.

Ken Martin contributed to this report.