US STOCKS-Turkey trouble rattles Wall St, banks worst hit

Reuters

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    * Trump doubles tariffs on Turkish steel and aluminum 
    * Turkish lira falls as much as 18 pct
    * Intel falls as Goldman downgrades to 'sell'
    * Indexes down: Dow 0.91 pct, S&P 0.70 pct, Nasdaq 0.64 pct 

 (Changes comment, adds details, updates prices)
    By Amy Caren Daniel
    Aug 10 (Reuters) - U.S stocks slid on Friday, with banks
taking the biggest hit, as concerns over Turkey's economy and
its deepening rift with the United States roiled stock markets
around the world.
    At the center of the Turkish crisis was a sharp slump in its
currency, which worsened further after President Donald Trump
doubled tariffs on steel and aluminum imported from the
country. urn:newsml:reuters.com:*:nL1N1V10IN    
    "The currency crisis is actually a banking crisis as Turkey
owes so much money to so many different banks, that they risk a
potential contagion," said David McKnight, adviser at David
McKnight & Co in Puerto Rico.
    "As long as Trump is going to be willy-nilly with tariffs,
there's going to be a lot of uncertainty and markets thrive on
certainty."
    Citigroup  C.N , the most global among the major U.S. banks,
fell 2 percent. JPMorgan  JPM.N , Wells Fargo  WFC.N  and Bank
of America  BAC.N  were all down about 1 percent.
    Investors fled to safe-haven assets, with the dollar rising
to a 13-month high and U.S. bond yields slipping to a three-week
low.  US/ 
    Shares of trade-sensitive companies also declined, with 
Boeing  BA.N , 3M  MMM.N  and Caterpillar  CAT.N  falling
between 1.5 percent and 2 percent.
    At 10:46 a.m. EDT the Dow Jones Industrial Average  .DJI 
was down 232.05 points, or 0.91 percent, at 25,277.18, the S&P
500  .SPX  was down 19.90 points, or 0.70 percent, at 2,833.68
and the Nasdaq Composite  .IXIC  was down 50.51 points, or 0.64
percent, at 7,841.27.
    S&P technology sector's  .SPLRCT  0.57 percent fall was led
by chipmakers. Intel  INTC.O  dropped 2.7 percent after Goldman
Sachs downgraded the stock to "sell".     
    Microchip  MCHP.O  shares fell 11.8 percent, the biggest
decliner on the S&P, after it forecast disappointing
second-quarter revenue.
    Data on Friday showed U.S. consumer prices rose in July and
the underlying trend continued to strengthen, pointing to a
steady increase in inflation pressures.  urn:newsml:reuters.com:*:nLNSAJEEIC
    Declining issues outnumbered advancers for a 1.99-to-1 ratio
on the NYSE and for a 1.46-to-1 ratio on the Nasdaq.
    The S&P index recorded 9 new 52-week highs and seven new
lows, while the Nasdaq recorded 57 new highs and 62 new lows.

 (Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil
D'Silva)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 9250 ; Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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