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RPT-US STOCKS-Wall St snaps 4-day rally; latest trade threat weighs


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* U.S. proposes fresh tariffs on $200 bln worth of Chinagoods

* Boeing, Caterpillar lead decliners on Dow

* Chipmakers slide

* Indexes down: Dow 0.9 pct, S&P 0.7 pct, Nasdaq 0.6 pct (Repeats to include in-line graphic. No changes to text)

By Caroline Valetkevitch

NEW YORK, July 11 (Reuters) - U.S. stocks fell on Wednesday,breaking a four-session streak of gains after Washington'sthreat to impose tariffs on an additional $200 billion worth ofChinese goods fanned trade war fears, while a sharp drop in oilprices hit energy shares.

China responded to U.S. President Donald Trump's threats byaccusing the United States of bullying and warned that it wouldhit back. urn:newsml:reuters.com:*:nL4N1U71IM

Industrial names including BoeingBA.N , 3MMMM.N andCaterpillar CAT.N , which have been among the hardest hit bythe recent trade dispute, were among the Dow's biggest drags.

Materials .SPLRCM , down 1.7 percent, was another bignegative influence on the market, with Freeport-McMoRanFCX.N down 3.9 percent as copper prices CMCU3 hit their lowest inabout a year. urn:newsml:reuters.com:*:nL4N1U73HL

Investors said trade war worries may slip to the backgroundas investors begin to focus more closely on second-quarterearnings over the coming weeks. Results from JPMorgan ChaseJPM.N and other big banks are due Friday. "The trade situation is worrisome but nothing more is goingto happen right away. This story may recede in people'sconsciousness while current stories capture people's interests,particularly earnings," said John Carey, portfolio manager atAmundi Pioneer Asset Management in Boston.

"People are looking for some fairly strong earnings, andthere's certainly potential for disappointment."

Analysts are forecasting S&P 500 companies' earnings grewabout 21 percent in the second quarter from a year earlier,according to Thomson Reuters data.

Also pressuring the market Wednesday, the S&P 500 energyindex .SPNY fell 2.2 percent, leading sector declines. U.S.crude oil futures CLc1 settled down 5 percent on the tradedispute escalation and as expectations of growing suppliesincreased on news that Libya would reopen ports. urn:newsml:reuters.com:*:nL4N1U71P4

The Dow Jones Industrial Average .DJI fell 219.21 points,or 0.88 percent, to 24,700.45, the S&P 500 .SPX lost 19.82points, or 0.71 percent, to 2,774.02 and the Nasdaq Composite .IXIC dropped 42.59 points, or 0.55 percent, to 7,716.61.

Chipmakers, which largely depend on China for their revenue,fell, with the Philadelphia semiconductor index .SOX down 2.6percent.

The market's drop was not as steep as what was seen in lateMarch and early April when the escalating trade rhetoric betweenChina and the United States led to the S&P falling more than 2percent on four occasions.

The market slide may have been contained in part byspeculation the Trump administration could change its mind bythe end of August, when the tariffs are due to come into effect,some strategists said.

The utilities sector .SPLRCU was the only one in positiveterritory, with a 0.9 percent gain.

Twenty-First Century FoxFOXA.O fell 4 percent after themedia company raised its offer for Britain's Sky SKYB.L ,seeing off rival bidder ComcastCMCSA.O for now. Comcastshares were up 1.3 percent.

Declining issues outnumbered advancing ones on the NYSE by a2.74-to-1 ratio; on Nasdaq, a 1.87-to-1 ratio favored decliners.

The S&P 500 posted 13 new 52-week highs and one new low; theNasdaq Composite recorded 63 new highs and 51 new lows.

About 6.0 billion shares changed hands on U.S. exchanges.That compares with the 6.9 billion daily average for the past 20trading days, according to Thomson Reuters data.

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GRAPHIC: U.S.-China tariff war and the S&P 500   https://reut.rs/2NKw0pN
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(Additional reporting by Amy Caren Daniel in Bengaluru; Editingby Chizu Nomiyama and James Dalgleish) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;Reuters Messaging:caroline.valetkevitch.thomsonreuters.com@reuters.net))




This article appears in: Stocks , World Markets , Politics , Oil
Referenced Symbols: BA ,


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