Financial-Markets                      07/11 09:54

   

   U.S. stocks are down in early trading Friday, pulling the market back from 
all-time highs, as the Trump administration escalates its tariff threats 
against Canada.

   The S&P 500 was down 0.4% a day after setting a record high. The benchmark 
index is on pace to post its first weekly loss in three weeks.

   The Dow Jones Industrial Average was down 257 points, or 0.6%, as of 10:04 
a.m. Eastern time, and the Nasdaq composite was 0.2% lower a day after climbing 
to an all-time high. Both indexes are also headed for weekly losses.

   Bond yields were mostly higher. The yield on the 10-year Treasury rose to 
4.40% from 4.34% late Thursday.

   Trump said in a letter Thursday that he will raise taxes on many imported 
goods from Canada to 35%, deepening the rift between the longtime North 
American allies. The letter to Canadian Prime Minister Mark Carney is an 
aggressive increase to the top 25% tariff rates that Trump first imposed in 
March.

   The move is the latest bid by the White House to use threats of higher 
tariffs on goods imported into the U.S. in hopes of securing new trade 
agreements with countries around the globe, even historically close trading 
partners like Canada.

   The administration had initially set Wednesday as a deadline for countries 
to make deals with the U.S. or face heavy increases in tariffs. But with just 
two trade deals announced since April, one with the United Kingdom and one with 
Vietnam, the window for negotiations has been now been extended to Aug. 1.

   Trump also floated this week that he would impose tariffs of as much as 200% 
on pharmaceutical drugs and placed a 50% tariff on copper imports, matching the 
rates charged on steel and aluminum.

   Wall Street has been relatively stable in recent weeks, with stocks steadily 
rising to record levels, appearing to take the unpredictability of Trump's 
tariff policies in stride after following wild swings after the tariffs were 
initially rolled out in the spring.

   Trade policy aside, the market is now set to shift at least some of its 
focus on companies due to report quarterly earnings over the next few weeks.

   On Friday, Levi Strauss jumped 8.2% after the jeans maker easily beat Wall 
Street's sales and profit targets and raised its full-year forecast, despite 
expecting higher costs from tariffs.

   Earnings season shifts into high gear next week with JPMorgan Chase, Wells 
Fargo and Citigroup among the big banks due to report their results on Tuesday.

   Wall Street analysts predict that companies in the S&P 500 will deliver 5% 
growth in second-quarter earnings, according to FactSet. That would mark the 
lowest rate since the fourth quarter of 2023.

   Shares of T-Mobile were largely unchanged after the Justice Department 
announced Thursday that it would not prevent the company from closing on its 
proposed $4.4 billion acquisition of U.S. Cellular. That deal, announced more 
than a year ago, had come under antitrust scrutiny from the Justice Department 
under President Joe Biden's administration.

   U.S. Cellular shares were up a 2.7%.

   European stock indexes were lower following a mostly lower finish in Asian 
markets.

   Meanwhile, bitcoin climbed to another all-time high Friday, briefly 
eclipsing $118,000 before easing back to $117,600, according to Coindesk.

   Bitcoin's price jump came amid bullish momentum across risk assets and 
coincides with Nvidia's surge to a $4 trillion valuation. It also comes days 
before the U.S. Congress' Crypto Week on July 14, where lawmakers will debate a 
series of bills that could define the regulatory framework for the industry.

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