Stocks Ended Lower as Trade Fears Escalated

U.S. stocks closed lower on Tuesday, as a sharp escalation in the trade dispute between the United States and China rattled markets. The Dow Jones Industrial Average fell 287.26 points, or 1.15%, to 24,700.21. The S&P 500 shed 11.18 points, or 0.40%, to 2,762.57. The Nasdaq Composite dropped 21.44 points, or 0.28%, to 7,725.58.

Oil prices settled with a loss Tuesday on expectations that OPEC and other major oil producers will announce a decision later this week to raise production. West Texas Intermediate crude for July delivery lost 78 cents, or 1.2%, to settle at $65.07 a barrel. August Brent oil fell 26 cents, or nearly 0.4%, to $75.08 a barrel.

Oracle Corp. (ORCL) beat earnings expectations. Oracle reported fiscal fourth-quarter net income of $3.41 billion, or 82 cents a share, on sales of $11.25 billion. After adjustments for stock-based compensation and other effects, the company claimed profit of 99 cents a share.

Starbucks Corp. (SBUX) announced a long-term strategic plan Tuesday afternoon that includes shipping more cash back to investors while closing down underperforming stores in certain markets. Starbucks hiked its dividend 20%, to a quarterly return of 36 cents a share, and said it plans to return $25 billion to shareholders in dividends and buybacks through its 2020 fiscal year.