Markets Right Now: Tech, energy stocks lead a broad decline
NEW YORK (AP) — The Latest on financial markets. All times local.
Stocks lost ground on Wall Street as a rout in tech stocks deepened as the day went on.
Apple sank 3 percent Thursday, its second big loss in a row, after billionaire investor Carl Icahn told CNBC he had sold his stake in the company. A day earlier Apple reported its first revenue decline in over a decade as iPhone sales fell.
Energy stocks also fell despite another gain in the price of oil.
The Dow Jones industrial average fell 210 points, or 1.2 percent, to 17,830.
The Standard & Poor’s 500 index lost 19 points, or 0.9 percent, to 2,075. The Nasdaq composite gave up 57 points, or 1.2 percent, to 4,805.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.83 percent.
U.S. stocks are mostly higher in midday trading, while a handful of companies jump on news about deals and earnings.
Facebook and PayPal are leading technology stocks higher Thursday after they announced strong first-quarter results. Facebook jumped 9 percent after reporting that its profit nearly tripled, while PayPal added 3 percent.
The gains were held back disappointing economic news. The government said growth in the U.S. slowed to 0.5 percent in the first three months of this year.
The Dow Jones industrial average fell 23 points, or 0.1 percent, to 18,018.
The Standard & Poor’s 500 index edged up two points, or 0.1 percent, to 2,097. The Nasdaq composite rose 21 points, or 0.4 percent, to 4,884.
The yield on the 10-year Treasury note held steady at 1.86 percent.
Stocks are opening broadly lower on Wall Street as traders look over the latest batch of earnings and deal news.
Materials and health care stocks posted the biggest losses in early trading Thursday.
Investors didn’t get any encouragement from the government’s estimate of first-quarter economic growth, which came in below forecasts. Japan’s market fell after that country’s central bank didn’t introduce any new stimulus.
Bucking the downward trend, Facebook jumped 10 percent after reporting that its profit nearly tripled in the latest quarter.
The Dow Jones industrial average fell 79 points, or 0.4 percent, to 17,962.
The Standard & Poor’s 500 index fell six points, or 0.3 percent, to 2,089. The Nasdaq composite was little changed at 4,863.
Following broad declines across Europe and Asia, Wall Street is set to open sharply lower as traders respond to the surprise decision by the Bank of Japan not to introduce further stimulus measures.
Dow futures and the broader S&P 500 futures are both down 0.8 percent. Still that’s less than the declines recorded in much of Asia, notably by Tokyo’s Nikkei 225 stock average, which ended 3.6 percent lower.
European shares have also tracked Asia lower. The Stoxx 600 index of leading European shares is down 1.1 percent at 344.4.
Neil MacKinnon, global macro strategist at VTB Capital, said the market reaction has been “hardly surprising” given the widespread expectation that the Bank of Japan would announce additional measures designed to revive the Japanese economy.
Stock markets in Europe have tracked their Asian counterparts sharply lower after the Bank of Japan surprised investors with its failure to enact any further stimulus measures after its policy meeting.
Much of the positive momentum in markets this week has been based on expectations that the Bank of Japan would deliver some new stimulus. Its failure to do so has seen stock markets reverse gains and the yen surge.
The dollar, for example, is down 2.8 percent at 108.37 yen. That’s unhelpful for Japan’s exporters and their share prices took a dive following the decision. The Nikkei 225 stock average ended down 3.6 percent at 16,666.95.
The selling pressure continued into the European session. Among the major indexes, Germany’s DAX was down 1 percent at 10,199 while the CAC-40 in France fell 1.2 percent to 4,506.