Global stocks dip on report China calls off U.S. trade talks

NEW YOrK» Global stocks took small losses Monday after China reportedly pulled out of trade talks with the U.S. Industrial companies and banks suffered some of the worst declines among American stocks.

The U.S. and China officially began taxing larger amounts of each other’s goods Monday, and the Wall Street Journal reported that China pulled out of talks that could have led to a new round of negotiations to end the trade war.

The U.S. is now taxing another $200 billion in Chinese imports at a rate of 10 percent, and China added taxes of 5 to 10 percent on $60 billion in U.S. products. Among in dustrial companies, which are considered especially vulnerable to tariffs, General Electric dropped 3.5 percent, while 3M declined 1.3 percent. Gains in other sectors helped offset some of the traderelated selling, leaving U.S. indexes only slightly lower.

Oil prices jumped after OPEC decided not to produce more oil and gave a boost to shares of oil majors such as Exxon and Chevron. Technology and health care companies also rose.

The U.S.China trade dispute contributed to some volatile trading sessions earlier this year. Lately, investors have taken things in stride. The S&P 500 hasn’t risen or fallen 1 percent in a day since late June.

“The market’s been remarkably resilient over the last couple of months while trade tensions were heating up,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

The S&P 500 index fell 10.30 points, or 0.4 percent, to 2,919.37. The Dow Jones Industrial Average lost 181.45 points, or 0.7 percent, to 26,562.05. Both the S&P 500 and Dow set record highs last week.

The Russell 2000 index of smallercompany stocks dropped 7 points, or 0.4 percent, to 1,705.32. The Nasdaq composite rose 6.29 points, or 0.1 percent, to 7,993.25.

Sandven noted that this year’s stock gains have been concentrated in technology, retail and health care companies. That was the case Monday, as Apple gained 1.4 percent to $220.79 and drug and infant formula maker Abbott Laboratories advanced 3.5 percent to $71.44.

Benchmark U.S. crude gained 1.8 percent to $72.08 a barrel in New York while Brent crude, the international standard for oil prices, rose 3 percent to $81.20 a barrel in London, its highest price in more than three years.

Marijuanarelated companies again made dramatic moves. Biotechnology company Intrexon soared 31.5 percent to $19.07 in heavy trading after it said it engineered a strain of yeast to produce chemical compounds found in marijuana consistently and at low cost. Scientists say that’s been a problem in researching the drug. Canadian medical marijuana company Tilray sank 19.1 percent to $99.50.