Shares fall as technology companies fall; oil pung continues
Published: November 9, 2018 8:00 AM Updated: November 9, 2018, 17:51
NEW YORK (AP) – US stocks fell Friday as a combination of weak economic data from China and disappointing earnings damaged technology and internet companies. Crude oil prices fell for the tenth consecutive day.
Auto sales in China fell in October for the fourth consecutive month and are 13 percent lower than a year ago, the last sign that the economy is under pressure. Concerns about China's economy and trade dispute with the United States contributed to the global stock market in October. The shares that made the worst during that time included technical and internet companies and retailers, who all took a sharp loss on Friday.
"China has played such an important role in driving global growth," says Kristina Hooper, world-wide marketing strategy for Invesco. "(Investors) have concerns that these tariff war will mainly kick China when it's down."
U.S. Crude oil glowed 0.8 percent to prolong its losing knitting. It has fallen for five weeks in a row and tumbled 21[ads1] percent since 3 October. The energy companies have suffered steady losses during that time.
Weak forecasts from companies, including the video game company Activision Blizzard and chipmaker Skyworks Solutions, also contributed to Friday's decline.
The S & P 500 index fell 25.82 points, or 0.9 percent, to 2.781.01. Dow Jones Industrial Average dropped 201.92 points, or 0.8 percent, to 25.989.30.
The Nasdaq composite sank 123.98 points, or 1.6 percent, to 7.406.90. The Russell 2000 index for smaller companies gave 28.72 points, or 1.8 percent, to 1 549.49.
The Ministry of Labor said wholesale prices in the United States jumped, and Hooper said it could also be linked to the tariff. Wholesale prices rose most for six years in October, as gas, food and chemical prices rose. The Ministry of Labor's wholesale price index has increased 2.9 per cent over the past year.
Video player Activision Blizzard stumbled after the forecast for the critical high season was short of analysts' forecasts. The stock fell 12.4 percent to $ 55.01, and Electronic Arts lost 5.3 percent to $ 88.89.
Major technology and internet companies were also lower. Apple dropped 1.9 percent to $ 204.47 and Facebook shed 2 percent to $ 144.96. Amazon lost 2.4 percent to $ 1,712.43.
Benchmark American Raw fell to $ 60.19 a barrel in New York, the lowest for almost eight months. Burned crude oil, used to price international oils, has gone almost as bad as American crude oil, and dropped 0.7 percent to $ 70.20 per barrel in London.
West Coast utility companies tumbled as fire fighters worsened in Southern California, with tens of thousands of people forced to flee in Los Angeles and Ventura counties. PG & E doubled 16.5 percent to 39.92 dollars and Edison International slipped 12.1 percent to 61 dollars.
General Electric dropped another 5.7 percent to $ 8.58 after a JPMorgan Chase analyst cut its share price at $ 6 per share from $ 10. Stephen Tusa said that six of GE's eight divisions could be unprofitable in 2020.
Bond prices rose. The yield on the 10-year government bond note fell to 3.18 percent from 3.23 percent.
Despite the losses on Friday, the S & P 500 still received 2.1 percent this week. It climbed 2.4 percent last week, but had to increase an additional 5.4 percent to reach the highest time it set on September 20th.
Walt Disney's net revenue was better than expected when the entertainment giant earned the proceeds from movies, including "Avengers: Infinity War," "Incredibles 2" and "Ant-Man and the Wasp." The stock increased by 1.7 percent to $ 118.
A federal judge blocked a Trump Administration permission for the construction of TransCanada's Keystone XL pipeline pending an environmental assessment. The long-term $ 8 billion project pipeline will begin in Alberta and run through half a dozen states to terminals on the Gulf Coast. US District Judge Brian Morris claimed that the potential impact had not been assessed as required by federal law after environmentalists and native American groups sued to terminate the project, referring to property rights and potential oil spill.
In Toronto, shares in TransCanada lost 1.7 percent.
Online reviews company Yelp nosedived after it has reported weak third quarter earnings and the forecast for the fourth quarter also fell short of Wall Street estimates. The company said that part of the problem is an advertising model that will encourage advertisers to try the site without signing a long-term contract. Yelp said it made its results more sensitive to short-term issues. The company's shares fell 26.6 percent to 31.93 dollars.
In other commodities, natural gas prices dropped 5 percent to $ 3.72 per 1000 cubic meters. It helped the gas companies to reduce their losses. The heating oil was slightly changed to $ 2.17 per gallon and wholesale gasoline fell 1.4 percent to $ 1.62 per gallon.
Gold fell 0.3 percent to $ 1,208.60 an ounce. Silver lost 2 percent to $ 14.14 per ounce. Copper drove 1.9 percent to $ 2.68 per pound.
The dollar fused to 113.76 yen from 113.99 yen. The euro fell to $ 1,1333 from $ 1,1356.
The French CAC 40 and FTSE 100 in the UK both fell 0.5 percent. Germany's DAX was slightly changed.
Tokyos Nikkei 225 decreased 1 percent and Hong Kong's Hang Seng fell 2.4 percent. Seoul Kospi gave 0.3 percent.
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AP Markets Writer Marley Jay can be accessed at http://twitter.com/MarleyJayAP
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