cloudy
Tuesday November 21st, 2017 3:21AM

US stocks skid as GE tumbles and technology companies fall

By The Associated Press

NEW YORK (AP) — Industrial and technology companies and retailers all stumbled Monday as U.S. stocks began the week with losses. General Electric suffered its worst one-day loss in six years following downgrades from analysts.

After a mixed start, stocks turned lower in afternoon trading. GE's struggles weighed on industrial companies, while big technology companies liked Facebook and Alphabet sank. Toy companies Hasbro and Mattel tumbled after Hasbro's sales forecast disappointed Wall Street and familiar consumer companies like Amazon and McDonald's also slumped. Investors did far more selling than buying as a seven-day winning streak ended. It was the worst day for stocks in about seven weeks, but it was still a fairly small decline, as almost nothing has seriously rattled investors this year.

"We have never seen the level of calm and the level of strength combined that we've seen," said Mark Hackett, chief of investment research at Nationwide Investment Management. "Investors are kind of willing to just trust it."

Hackett said it's very unusual that stocks have continued to rise without any big sell-offs, but he doesn't see it as a problem. That's because major economies like the U.S., Europe and China have all been growing for more than a year, which isn't likely to end soon.

The Standard & Poor's 500 index lost 10.23 points, or 0.4 percent, to 2,564.98. The Dow Jones industrial average fell 54.67 points, or 0.2 percent, to 23,273.96. The Nasdaq composite dropped 42.23 points, or 0.6 percent, to 6,586.83. The Russell 2000 index of smaller-company stocks sank 11.75 points, or 0.8 percent, to 1,497.49.

General Electric took its biggest single-day loss since August 2011 after analysts at UBS and Morgan Stanley lowered their ratings on its stock. GE stock has been slumping all year, but it had edged higher Friday as investors reacted positively to the conglomerate's third-quarter results. Analysts were less optimistic Monday, as Christopher Belfiore of UBS cut his 2018 and 2019 profit estimates for GE and said it's likely to reduce its dividend payments.

The stock fell $1.51, or 6.3 percent, to $22.32. It's down 29 percent this year.

Other industrial firms also took losses. Equipment rental company United Rentals lost $2.92, or 2 percent, to $141.48. Arconic, which makes aluminum parts for the aerospace and other industries, fell $2.52, or 9.2 percent, to $24.65 after it disclosed a smaller-than-expected profit and named former GE executive Charles Blankenship as its next CEO.

Hasbro tumbled after its sales forecast fell short of Wall Street estimates. The company said the recent bankruptcy of Toys R Us hurt its business. Its stock gave up $8.44, or 8.6 percent, to $89.75 and competitor Mattel fell 51 cents, or 3.2 percent, to $15.46.

Other consumer-focused companies also declined. Under Armour fell 63 cents, or 3.6 percent, to $16.85 after the Wall Street Journal reported that co-founder Kip Fulks' plans to take a sabbatical from the company, and that Under Armour may exit its camping and hiking apparel business. Amazon slipped $16.63, or 1.7 percent, to $966.30.

The S&P closed at an all-time high every day last week. According to S&P Dow Jones indices, that hadn't happened since March 1998. Hackett, of Nationwide Investments, said the steady rally over last year has been similar to the market's rally in 1994-95, when the U.S. was recovering from the early '90s recession and pro-business Republicans took control of Congress. He noted that that calm stretch did not end in a market crash.

Several companies struck deals over the weekend. Communications software maker BroadSoft agreed to be bought by Cisco Systems for $55 a share, or $1.9 billion. The stock added 90 cents, or 1.7 percent, to $54.80. It has climbed 27 percent since Aug. 29, when reports said BroadSoft was considering a sale. Cisco rose 10 cents to $34.35.

Aetna will sell its U.S. group life and disability insurance businesses to Hartford Financial Services for $1.45 billion. Hartford, which also reported its third-quarter results on Monday, fell $2.43, or 4.3 percent, to $54.06. Aetna gained 63 cents to $161.47.

Bond prices edged higher. The yield on the 10-year Treasury note slid to 2.37 percent from 2.38 percent.

Benchmark U.S. crude added 6 cents to $51.90 a barrel in New York. Brent crude, used to price international oils, lost 38 cents to $57.37 a barrel in London.

Wholesale gasoline stayed at $1.68 a gallon. Heating oil lost 2 cents to $1.79 a gallon. Natural gas jumped 8 cents, or 2.6 percent, to $2.99 per 1,000 cubic feet.

Gold inched up 40 cents to $1,280.90 an ounce. Silver remained at $17.08 an ounce. Copper rose 2 cents to $3.19 a pound.

The dollar rose to 113.73 yen from 113.50 yen. The euro fell to $1.173 from $1.1780.

The CAC 40 in France rose 0.3 percent and Germany's DAX rose 0.1 percent. In Britain, the FTSE 100 was little changed.

Japan's benchmark Nikkei 225 jumped 1.1 percent after Prime Minister Shinzo Abe's ruling Liberal Democratic Party scored a win in the nationwide parliamentary election Sunday. The South Korean Kospi finished little changed and Hong Kong's Hang Seng fell 0.6 percent.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
The Latest: Former Fox anchor grapples with non-disclosure
Former Fox News anchor Juliet Huddy says she grapples with the idea of signing non-disclosure agreements to settle harassment cases, because it contributes to secrecy that makes other women who have complaints feel alone
3:55PM ( 8 minutes ago )
Senate presses ahead on $36.5B disaster relief package
Senate presses ahead on $36.5B disaster relief package
3:51PM ( 12 minutes ago )
FBI: Florida man sympathized with IS, wanted to bomb mall
Court documents say a Florida man who described himself as a sympathizer of the Islamic State extremist group has been charged with terrorism-related charges stemming from a purported plot to bomb a Miami-area shopping mall
3:50PM ( 14 minutes ago )
Associated Press (AP)
Kaspersky Lab to open anti-virus software to outside review
Kaspersky Lab will open up anti-virus software to outside review as it deals with security concerns
2:54PM ( 1 hour ago )
Trump shoots down retirement limit to pay for GOP tax cuts
President Donald Trump is promising there will be "no change" to tax incentives for the popular 401(k) retirement programs, GOP still looking for ways to pay for steep tax cuts
2:54PM ( 1 hour ago )
Hundreds attend Mass for slain reporter in Malta
Hundreds of people attended a Mass in Malta to celebrate an investigative journalist who was killed by a car bomb, and the archbishop prayed Monday that the nation would seek to promote a culture of "integrity and honesty."
2:36PM ( 1 hour ago )
AP Business
US stocks mixed as retailers rise and industrial firms skid
US stocks are mixed as clothing and household goods companies rise and General Electric and other industrial companies take losses
10:38AM ( 5 hours ago )
The Latest: Trump calls failure on tax plan GOP doom in 2018
Trump urges House Republicans to move swiftly on passing budget bill, clearing the way for move on taxes
2:39AM ( 13 hours ago )
Vegas rebranding shows difficulty of messaging after tragedy
As volunteers streamed in to donate blood, doctors tended to the wounded and investigators scoured the scene of the deadliest shooting in modern U.S. history, Las Vegas officials moved to protect their valuable franchise
12:04PM ( 1 day ago )
AP Business - Corporate News
Catalan parliament to respond to Spain's planned takeover
Catalonia's regional parliament will hold a debate this week on Spain's plan to take direct control of the northeastern region _ a session many fear could become a cover for a vote on declaring independence
1:12PM ( 2 hours ago )
States to ask judge to keep health subsidies that Trump cut
The top lawyers for 19 states want a federal judge to force President Donald Trump's administration to pay health care subsidies that he abruptly cut off
12:58PM ( 3 hours ago )
The Latest: Business group endorses early Catalonia election
A prominent Catalan business group is calling for early elections in Catalonia to prevent a worsening social and economic situation from the wealthy Spanish region's push for independence
12:32PM ( 3 hours ago )
AP Business - Economy
Japan ruling party win boosts Nikkei; other trading muted
Global share markets muted; Japan's benchmark lifted by ruling party win in parliamentary vote
4:38AM ( 11 hours ago )
Japan ruling party victory boosts Nikkei; rest of Asia mixed
Japan ruling party election victory boosts Nikkei; rest of Asia mixed
3:32AM ( 12 hours ago )
Nikkei rises on Japanese ruling party win, most of Asia up
Asian stocks are mostly higher, with Japan's benchmark rising on the back of an election victory by the prime minister's ruling party, which had promised stability and growth
12:43AM ( 15 hours ago )
AP Business - Financial Markets
The Latest: Former Fox anchor grapples with non-disclosure
Former Fox News anchor Juliet Huddy says she grapples with the idea of signing non-disclosure agreements to settle harassment cases, because it contributes to secrecy that makes other women who have complaints feel alone
3:55PM ( 9 minutes ago )
Senate presses ahead on $36.5B disaster relief package
Senate presses ahead on $36.5B disaster relief package
3:51PM ( 13 minutes ago )
FBI: Florida man sympathized with IS, wanted to bomb mall
Court documents say a Florida man who described himself as a sympathizer of the Islamic State extremist group has been charged with terrorism-related charges stemming from a purported plot to bomb a Miami-area shopping mall
3:50PM ( 14 minutes ago )
Long day of diplomacy: Tillerson visits Afghanistan, Iraq
U.S. Secretary of State Rex Tillerson is on an unannounced trip to Iraq just hours after returning from a similar surprise visit to Afghanistan.
3:37PM ( 26 minutes ago )
Star chef Besh steps down amid sexual harassment allegations
New Orleans celebrity chef John Besh is stepping down from the restaurant group that bears his name after a newspaper reported that 25 current or former employees of the business said they were victims of sexual harassment
3:31PM ( 33 minutes ago )