Stocks gyrate on China trade threats
U.S. stocks are tarding higher on Thursday, having bounced back and forth between gains and losses during the premarket session as China threatened retaliation if Washington goes ahead with planned Sept. 1 tariff hikes.
The Chinese announcement did not mention President Trump's decision this week to delay penalties until December and removing tariffs on some Chinese imports.
Markets jumped skyward on that news on Tuesday.
Stock plummeted on Wednesday with the Dow Jones Industrials tumbling 800 points -- the fourth largest daily point drop on record and the worst this year.
Global recession fears drove Wall Street investors to the safety of U.S. government debt as the yield curve inverted. That's when the yield on the 2-year note exceeds the yield on the 10-year Treasury. it has been an historically accurate indication that a recession is on the way.
Global growth fears were also part of the selling equation as Germany's growth contracted and several reports from China indicated slowing of the economy.
Traders are also concerned about the protests in Hong Kong, where police and protesters faced off again, after Trump tied a U.S. trade deal with China to a humane resolution of the protests
On the economic calendar, U.S. retail sales jumped in July as various goods were purchased. The Commerce Department said retail sales rose 0.7 percent. Data for June was revised slightly down to show retail sales gaining 0.3 percent instead of increasing 0.4 percent as originally reported.
The number of Americans filing applications for unemployment benefits increased more than expected last week. Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 220,000.
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On the earnings front, Walmart shares traded higher after reporting that second-quarter U.S. comparable sales topped expectations and the retailer boosted its earnings forecast for the year.
Cisco Systems shares fell 7 percent in extended trading after the company forecast current-quarter profit below Wall Street estimates.
The Associated Press contributed to this article.
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