Quantcast

US STOCKS-Wall St drops on China concerns, oil slide


Shutterstock photo


* Oil stocks fall as U.S. crude price in bear territory

* Industrial, material shares suffer on Chinese growthworries

* U.S. producer prices rise more than expected in Oct.

By Sruthi Shankar

Nov 9 (Reuters) - U.S. stocks fell on Friday, with shares oftechnology, energy and industrial companies taking a hit fromconcerns about global growth after a batch of weak Chinese dataand a slide in oil prices.

As investors shunned growth stocks, the S&P technology index .SPLRCT fell 1.76 percent, led by Apple Inc'sAAPL.O 2.4percent slide and semiconductor stocks .SOX tumbling 2.21percent.

The S&P energy index .SPSY dropped 0.91 percent as U.S.crude prices LCOc1 entered "bear market" territory, fallingmore than 20 percent since early October due to concerns overrising global supply. O/R

"A lot of investors look at oil prices as the generalindicator of the global economy, so it being weak is not a goodsign," said Scott Brown, chief economist at Raymond James in St.Petersburg, Florida.

Amid a bitter trade dispute between the Washington andBeijing, Chinese data showed producer inflation fell for thefourth straight month in October on cooling domestic demand andmanufacturing activity, while car sales fell for a fourthconsecutive month. urn:newsml:reuters.com:*:nL4N1XK1D2urn:newsml:reuters.com:*:nB9N1XA02D

The report sent global stocks into a tailspin, withtrade-sensitive stocks such as Boeing CoBA.N and CaterpillarInc CAT.N sliding 0.8 percent and 3.6 percent, respectively.

The Federal Reserve policymakers, as expected, left interestrates unchanged following a two-day meeting on Thursday, andtheir policy statement signaled more rate hikes ahead, with thefourth hike this year expected in December.

The latest data on U.S. producer prices did little to easeworries about rising interest rates, which have hampered gainsin stocks this year.

Prices paid by producers rose 0.6 percent in October - theirfastest pace in six years and easily beating expectations of 0.2percent - fueled by a jump in costs for energy and tradeservices. urn:newsml:reuters.com:*:nUSN9MEENH

"It's a classic risk-off driven by the fears of Fed, Chinaand oil," said Cliff Hodge, director of investments atCornerstone Wealth in Charlotte, North Carolina.

At 11:21 a.m. EDT the Dow Jones Industrial Average .DJI was down 188.63 points, or 0.72 percent, at 26,002.59, the S&P500 .SPX was down 25.47 points, or 0.91 percent, at 2,781.36and the Nasdaq Composite .IXIC was down 120.20 points, or 1.60percent, at 7,410.68.

Eight of the 11 major S&P sectors were lower, with slightgains seen in the defensive real estate .SPLRCR , consumerstaples .SPLRCS and utilities .SPLRCU indexes.

Activision Blizzard IncATVI.O dived 12 percent after thevideo game publisher gave a dismal fourth-quarter forecast. urn:newsml:reuters.com:*:nL4N1XJ6AL

Dow-member Walt Disney CoDIS.N rose 2.8 percent after themedia company reported better-than-expected results as its themeparks and Marvel movie "Ant-Man and the Wasp" attracted crowd. urn:newsml:reuters.com:*:nL4N1XJ6AR

Declining issues outnumbered advancers for a 2.40-to-1 ratioon the NYSE and a 2.77-to-1 ratio on the Nasdaq.

The S&P index recorded 25 new 52-week highs and six newlows, while the Nasdaq recorded 32 new highs and 67 new lows. (Reporting by Sruthi Shankar in Bengaluru; Editing by ArunKoyyur) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 6749 6328; Reuters Messaging:sruthi.shankar.reuters.com@reuters.net))




This article appears in: Politics , World Markets , US Markets , Stocks
Referenced Symbols: AAPL ,



More from Reuters

Subscribe






See Reuters News











Research Brokers before you trade

Want to trade FX?