April 4, 2018 / 11:42 PM / 6 months ago

CORRECTED-(OFFICIAL)-FACTBOX-U.S. winners and losers from trade tit-for-tat

 (Deletes first half of Cisco statement from paragraph 13 after 
company said the outdated portion was provided to Reuters in
error.)
    April 4 (Reuters) - China on Wednesday hit back at U.S.
President Donald Trump's plan to impose tariffs on $50 billion
of Chinese imports, proposing additional tariffs of 25 percent
on 106 categories of U.S. goods, from soybeans to autos,
chemicals and some kinds of aircraft.
    The trade tension brewing between the world's two largest
economies hit global markets, with shares of industrial
companies with exposure to Chinese markets, such as Boeing Co
and Deere & Co, among the hardest hit.
    The following are some of the possible winners and losers
among U.S. companies and sectors:
    
    AUTO COMPANIES:
    * U.S. automaker General Motors Co        urged the two
countries to engage in constructive dialogue over trade. The
company's stock fell as much as 3 percent before reversing
course to close nearly 3 percent higher.              
    * GM rival Ford Motor Co       also lost as much as 3
percent before rebounding to close 1.6 percent higher while
electric carmaker Tesla Inc          , which depends on China
for 17 percent of its revenue, fell as much as 5.8 percent
before retracing losses to end up over 7.2 percent. Shares of
Fiat Chrysler          fell as much as 3.4 percent before
recovering to end up nearly 2 percent.             
    * Ford said it encouraged both governments to work together
to resolve issues.             
    
    BOEING & INDUSTRIALS:
    * Aircraft maker Boeing Co        closed down 1 percent,
weighing the most on the Dow Jones Industrial Average        as
documents from China's Ministry of Commerce and the U.S.
manufacturer showed the move would affect some older Boeing
narrowbody models. It was not immediately clear how much the
tariffs would impact its newer aircraft.
    * Boeing said it was assessing the situation while analysts
from JP Morgan said the proposals from China looked to have been
calibrated carefully to avoid a major impact on the planemaker.
             
    * Fellow Dow component 3M Co         lost as much as 2.4
percent before rebounding to end 0.6 percent higher. 
    * Farming equipment maker Deere        lost nearly $10 per
share at its lowest. The company urged the two countries to work
toward a resolution to "limit uncertainty for farmers and avoid
meaningful disruptions to agricultural trade." The stock ended
2.9 percent lower at $148.57. 

    TECH MAJORS:
    * The S&P 500 technology sector          , which has the
biggest revenue exposure to China among the benchmark's 11 major
sectors, dipped 0.5 percent before rebounding to end 1.3 percent
higher.
    * Chip stocks were among the worst-hit in the sector with
Intel Corp          and Nvidia Corp          both falling before
retracing losses to end narrowly higher. Broadcom Ltd         
ended the day nearly flat at $236.99. China's position as an
assembly hub for electronic devices makes it the biggest
consumer of semiconductors. 
    * Cisco Systems Inc          closed slightly higher at
$41.20, but said it was "analyzing the impact of these tariffs
on Cisco and reviewing plans to minimize the impact on our
business, our customers and our partners," company spokeswoman
Robyn Blum told Reuters.
    
    WHISKEY
    * Brown-Forman Corp        , the maker of Jack Daniel's
whiskey, slipped about 1 percent before recovering to close up
1.3 percent to $54.71 after whiskey was singled out as the only
spirit on which China planned to impose more tariffs.
            
    * The Distilled Spirits Council, a U.S. industry group,
asked the United States and China to reach a resolution without
subjecting American whiskey to more tariffs, which it said would
harm Chinese consumers, its hospitality sector and U.S. whiskey
exporters. The Council also said U.S. whiskey accounted for
nearly 70 percent of the total U.S. spirits exported to China,
by value, in 2017.
    
    COMMODITIES & CHEMICALS 
    * DowDuPont Inc          said its agriculture unit could be
affected by the escalating conflict, warning of price declines
for soybeans, and a negative impact on U.S. farmers. Shares
closed up about 0.6 percent at $63.69.
    * Grain traders Archer Daniels Midland Co         and Bunge
Ltd       , which trade U.S. soybeans in China, were both off as
much as 1.5 percent. Archer Daniels recovered to add 1.8 percent
to $43.90, and Bunge gained 2 percent to close at $75.64. 
    * The American Chemistry Council (ACC) - which counts Exxon
       , Chevron        , Monsanto         and others as its
members - urged the United States and China to come to an
understanding. "Engaging in a trade war with one of our
country's most significant trading partners is not the answer,"
said ACC Chief Executive Officer Cal Dooley.
    Exxon closed 0.2 percent lower at $74.87, and Monsanto also
fell 0.2 percent to $116.75. Chevron dipped 0.3 percent to
$114.48.

    WINNERS
    * U.S. meat processor Tyson Foods Inc        , meat exporter
Hormel Foods Corp         rose on the prospect of a drop in
prices of soybean - a key feedstock - following higher Chinese
tariffs on U.S. exports. Tyson closed up 2.3 percent at $71.54,
and Hormel ended the day at $35.87, a gain of 4.8 percent.

 (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by
Bernard Orr, Shounak Dasgupta and G Crosse)
  
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