Technology Slump Leads US Stock Indexes Sharply Lower
NEW YORK (AP) — U.S. stocks are sinking Thursday morning as technology companies and most other parts of the market take sharp losses. Industrial companies are also trading lower. Macy's is climbing and competitor Kohl's is falling after the two department stores disclosed their third-quarter results.
KEEPING SCORE: The Standard & Poor's 500 index dropped 10 points, or 0.4 percent, to 2,583 as of 10:15 a.m. Eastern time. The Dow Jones industrial average fell 65 points, or 0.3 percent, to 23,497. The Nasdaq composite slid 43 points, or 0.6 percent, to 6,745 as technology companies struggled. The Russell 2000 fell 6 points, or 0.4 percent, to 1,475, its lowest price since late September.
Stocks have been setting records all year and they're on an eight-week winning streak, their longest in almost four years. Technology companies have led that rally and they have risen for 10 days in a row.
Despite the rough start there were few hints investors were fleeing stocks and looking for safer investments. The prices of gold and government bonds were little changed.
LOOK OUT BELOW: Google's parent company Alphabet tumbled $16.80, or 1.6 percent, to $1,041.49, while payment company eBay lost $1.45, or 3.9 percent, to $35.56. Microsoft slipped 69 cents to $83.87 and chipmaker Advanced Micro Devices fell 49 cents, or 4.2 percent, to $11.22.
DEPARTMENT STORES: Kohl's slumped $2.67, or 6.5 percent, to $38.12 after its third quarter profit came up short of Wall Street projections. Macy's fared better, as it rose 50 cents, or 2.8 percent, to $18.07 after its income was greater than expected. Both stocks have fallen sharply as the companies deal with falling sales and growing competition from online retailers. Macy's has lost about half its value this year and Kohl's is down more than 20 percent.
ROUGH MORNING: Among banks, Citizens Financial fell 29 cents to $37.02 and Bank of America lost 19 cents to $26.60. In the industrial sector, FedEx lost $2.23, or 1 percent, to $218.14 and medical waste management company Stericycle $3.75, or 5.6 percent, to $63.35 after its third-quarter profit and sales disappointed Wall Street. Caterpillar gave up $1.16 to $136.13.
Despite a strong quarterly report, chemicals maker Ablemarle lost $6.08, or 4.2 percent, to $138.50 and DowDuPont fell 52 cents to $70.29.
ENERGY: Benchmark U.S. crude gained 56 cents, or 1 percent, to $57.37 a barrel in the New York. This week oil has been trading at its highest prices since the middle of 2015. Brent crude, used to price international oils, added 42 cents to $63.91 a barrel in London.
BONDS: Bond prices were little changed. The yield on the 2-year Treasury note fell to 1.64 percent from 1.65 percent. The yield on the 10-year note rose to 2.34 percent from 2.33 percent.
CURRENCIES: The dollar fell to 113.49 yen from 113.78 yen. The euro rose to $1.1629 from $1.1596.
OVERSEAS: European stocks also sank. The CAC 40 in France dropped 1.2 percent and Britain's FTSE 100 shed 0.6 percent. Germany's DAX gave up 1.4 percent. Japan's Nikkei 225 index surged as much as 2 percent early on but finished with a loss of 0.2 percent. The Kospi in South Korea lost 0.1 percent and Hong Kong's Hang Seng added 0.8 percent.
- By Marley Jay, AP Markets Writer