Tech Giants Slide, Pulling US Stock Market Sharply Lower - NBC4 Washington

Tech Giants Slide, Pulling US Stock Market Sharply Lower

The market was coming off a two-week winning streak

    processing...

    NEWSLETTERS

    Tech Giants Slide, Pulling US Stock Market Sharply Lower
    AP
    FILE- In this Friday, Oct. 26, 2018, file photo trader Robert Moran works on the floor of the New York Stock Exchange.

    A broad sell-off in technology companies pulled U.S. stocks sharply lower Monday, knocking more than 600 points off the Dow Jones Industrial Average.

    The wave of selling snared big names, including Apple, Amazon and Goldman Sachs. Banks, consumer-focused companies, and media and communications stocks all took heavy losses. Crude oil prices fell, erasing early gains and extending a losing streak to 11 days.

    The tech stock tumble came followed an analyst report that suggested Apple significantly cut back orders from one of its suppliers. That, in turn, weighed on chipmakers.

    "With the news out of the Apple supplier this morning, you have the market overall questioning the growth trajectory as we look out to 2019," said Lindsey Bell, investment strategist at CFRA. "We continue to like tech going into next year, but we think it could be a little bit of a rocky period for the group as we continue through the last two months of the year."

    Family Says Vaping Killed Their 28-Year-Old Son

    [NATL] Family Says Vaping Killed Their 28-Year-Old Son
    An Orlando family is grieving the loss of their 28-year-old son, who died last week. They said he died as a result of vaping. Kyle Boyd's mother, Kimberly, said he was fine last Monday after he came home from hanging out with a group of friends. She said the next morning she could not wake him up.
     
    (Published Thursday, Nov. 21, 2019)

    The market's slide came after a two-week winning streak.

    The S&P 500 index dropped 54.79 points, or 2 percent, to 2,726.22. The Dow fell 602.12 points, or 2.3 percent, to 25,387.18. It was down briefly by 648 points.

    The Nasdaq composite slid 206.03 points, or 2.8 percent, to 7,200.87. The Russell 2000 index of smaller companies gave up 30.70 points, or 2 percent, to 1,518.79.

    Bond trading was closed for Veterans Day. Stocks in Europe also suffered losses.

    Apple tumbled 5 percent to $194.17 after Wells Fargo analysts said the iPhone maker is the unnamed customer that optical communications company Lumentum Holdings said was significantly reducing orders. Shares in Lumentum plunged 33 percent to $37.50.

    Several chipmakers also fell. Advanced Micro Devices gave up 9.5 percent to $19.03, while Nvidia lost 7.8 percent to $189.54. Micron Technology gave up 4.3 percent to $37.44.

    Amazon slid 4.4 percent to $1,636.85.

    Banks and other financial companies also took heavy losses Tuesday. Goldman Sachs slid 7.5 percent to $206.05.

    "Expectations are really that the deregulation process that has benefited banks up to this point is going to be slowed down with the Democrats in charge," Bell said.

    Stocks appeared to have regained their footing after a skid in October snapped a six-month string of gains for the S&P 500. Stocks rallied last week after the U.S. midterm elections turned out largely as investors expected, with a divided Congress promising legislative gridlock in Washington the next couple of years.

    While the market has typically thrived in periods of divided government, investors continue to grapple with uncertainty over the U.S.-China trade dispute and the potential impact of increased oversight of Corporate America by Democrats, who will be taking over leadership in the House of Representatives in January.

    In addition, some companies have recently reported third-quarter earnings and outlooks that have stoked investors' worries about the future growth of corporate profits.

    Trapped Hong Kong Protesters Rappel Down Hoses to Escape

    [NATL] Trapped Hong Kong Protesters Rappel Down Hoses to Escape

    Harrowing footage shows protesters trapped inside Hong Kong Polytechnic University rappelling down hoses to escape a police siege. About 100 anti-government protesters remain inside the university on a third day of clashes between protesters and police. 

    (Published Tuesday, Nov. 19, 2019)

    While companies got a boost this year from the lower tax rates put in place by President Donald Trump and the GOP last December, several companies have recently warned about the impact of higher costs related to tariffs and rising interest rates.

    "The bull market is not over, the economic expansion is not over, but things are starting to wind down," said Randy Frederick, vice president of trading & derivatives at Charles Schwab. "We're clearly getting into the late innings of the ball game."

    British American Tobacco, which makes Newport cigarettes, plunged 8.8 percent to $38.08 on reports that regulators were considering a ban on menthol cigarettes.

    PG&E tumbled 17.4 percent to $32.98 after the electric utility told regulators that a high-voltage line experienced a problem near the origin of one of the major California wildfires before the blaze started.

    Investors bid up shares in Athenahealth after the struggling medical billing software maker said it received a $5.7 billion cash buyout offer. The stock jumped 9.7 percent to $131.97.

    About 90 percent of S&P 500 companies have reported third-quarter results so far, with some 51 percent of those posting earnings and revenue that topped Wall Street's forecasts, according to S&P Global Market Intelligence. Several big retailers are due to deliver results this week, including Walmart, Home Depot, Williams-Sonoma, Nordstrom and J.C. Penney.

    Melting Sea Ice Spurs Spread of Marine Diseases

    [NATL] Melting Sea Ice Spurs Spread of Marine Diseases

    Melting sea ice on its own presents plenty of challenges for Arctic marine mammals, from loss of habitat, to changing predator prey dynamics. Now there's a new challenge present in a link between sea ice loss and the spread of disease between previously isolated marine life.

    (Published Tuesday, Nov. 19, 2019)

    "That could actually probably boost the market," Bell said. "Retailers are going to have a better third quarter than most people expect. A lot of them ordered goods ahead of the tariffs going into place, so they're not going to have to pass on higher prices on to the consumer this holiday season."

    Benchmark U.S. crude gave up an early gain, sliding 0.4 percent to settle at $59.93 per barrel in New York. Brent crude, used to price international oils, dipped 0.1 percent to close at $70.12 per barrel in London. Oil futures rose earlier on news that Saudi Arabia and other major producers planned to reduce output.

    The dollar strengthened to 113.86 yen from 113.80 yen on Friday. The euro fell to $1.1240 from $1.1336. The British pound weakened to $1.2853 from $1.2975 amid concerns that Britain's government is struggling to find unity on a Brexit deal.

    Gold fell 0.4 percent to $1,203.50 an ounce. Silver lost 0.9 percent to $14.01 an ounce. Copper slid 0.3 percent to $2.68 a pound.

    In other energy trading, heating oil fell 0.8 percent to $2.16 a gallon and wholesale gasoline gained 0.9 percent to $1.64 a gallon. Natural gas rose 1.9 percent to $3.79 per 1,000 cubic feet.

    Major stock indexes in Europe also ended lower Monday. Germany's DAX lost 1.8 percent and France's CAC 40 fell 0.9 percent. Britain's FTSE 100 shed 0.7 percent.

    Hong Kong Protesters Fight With Fire as Police Storm University

    [NATL] Hong Kong Protesters Fight With Fire as Police Storm University

    Police breached a Hong Kong university campus held by protesters early Monday after an all-night siege that included firing repeated barrages of tear gas and water cannons.

    (Published Monday, Nov. 18, 2019)

    In Asia, markets finished mixed. Japan's Nikkei 225 added 0.1 percent, while Hong Kong's Hang Seng rose 0.1 percent. Australia's S&P-ASX 200 gained 0.3 percent. The Kospi in South Korea dipped 0.3 percent.