Stocks close lower on continuing trade tensions

The Dow Jones Industrial Average notched a third day of hefty losses as investors continued to weigh the implications of an escalating trade war with China. The Dow closed at 26,461, down about 98 points or 0.4%. The Dow was down as much as 300 points midday. The S&P 500 finished the day at 2,932, down 22 points or 0.7%. The Nasdaq lost 108 points - 1.3% - and closed at 8,004. The losses in the stock market came even as the Labor Department announced a solid pace of hiring in July. Dow component Exxon Mobil Corp. weighed on that index, as shares fell 1% after the company missed Wall Street expectations.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.