Stocks have worst ses­sion since May

Los Angeles Times - - BUSINESS BEAT -

Brew­ing tensions be­tween the U.S. and North Korea put in­vestors in a sell­ing mood again Thurs­day, drag­ging U.S. stocks lower for the third day in a row.

The lat­est sell-off was the most se­vere yet, amount­ing to the big­gest single-day drop for the stock mar­ket since May 17.

Tech­nol­ogy firms, which have been the big­gest gain­ers this year as the mar­ket hit a slew of record highs, led the broad slide. Banks and depart­ment stores also were big de­clin­ers. Util­i­ties eked out a small gain.

“The mar­ket has been look­ing for an ex­cuse to sell off, and North Korea and the pres­i­dent gave the mar­ket that ex­cuse,” said David Schiegoleit, man­ag­ing di­rec­tor at U.S. Bank Pri­vate Client Wealth Man­age­ment. “As long as it doesn’t go be­yond just a war of words, this is go­ing to be short-lived.”

Bond prices rose. The yield on the 10-year Trea­sury note fell to 2.20% from 2.25%.

Un­ease over the es­ca­lat­ing U.S.-North Korea tensions pushed the VIX, a mea­sure of how much volatil­ity in­vestors ex­pect in stocks, up 44.4%. That’s the big­gest in­crease since May.

The mar­ket jit­ters gave in­vestors an op­por­tu­nity to pocket some of their re­cent gains af­ter a string of record highs fu­eled by strong cor­po­rate earn­ings.

Head­ing into Thurs­day, some 89% of the com­pa­nies in the S&P 500 had re­ported quar­terly re­sults. Of those, 52% de­liv­ered earn­ings and rev­enue that beat an­a­lysts’ fore­casts, ac­cord­ing to S&P Global Mar­ket In­tel­li­gence.

Tech stocks led Thurs­day’s slide. Nvidia fell 4.3% to $164.74. Ad­vanced Mi­cro De­vices sank 5.5% to $12.12.

Sev­eral fi­nan­cial firms also helped pull down the mar­ket. Bank of New York Mel­lon slid 3.9% to $51.95. Cit­i­zens Fi­nan­cial Group de­clined 3.8% to $33.71.

Dis­ap­point­ing quar­terly re­sults from big depart­ment store chains also weighed down the mar­ket. Macy’s tum­bled 10.2% to $20.67 af­ter it said its sales con­tin­ued to de­cline in the sec­ond quar­ter. Dil­lard’s slumped 15.9% to $61.70 af­ter the chain booked a quar­terly loss, say­ing in­creased in­ven­tory led to big dis­counts. Kohl’s de­clined 5.8% to $39.50.

Blue Apron slumped 17.6% to $5.14 af­ter the seller of meal kits re­ported a se­quen­tial de­cline in cus­tomers last quar­ter due to a planned re­duc­tion in mar­ket­ing. The trend ap­peared to over­shadow strong quar­terly rev­enue growth.

Bench­mark U.S. crude fell 97 cents, or 2%, to $48.59 a bar­rel. Brent crude, used to price in­ter­na­tional oils, fell 80 cents, or 1.5%, to $51.90. Whole­sale gaso­line fell 2 cents to $1.60 a gal­lon. Heat­ing oil fell 2 cents to $1.63 a gal­lon. Nat­u­ral gas jumped 10 cents, or 3.5%, to $2.99 per 1,000 cu­bic feet.

Gold rose $10.80 to $1,290.10 an ounce. Sil­ver rose 20 cents, or 1.2%, to $17.07 an ounce. Cop­per fell 2 cents to $2.90 a pound.

The dol­lar fell to 109.26 yen from 109.85 yen. The euro rose to $1.1774 from $1.1752.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.