The Atlanta Journal-Constitution
S&P 500 stumbles into 2nd 'correction' of 2018
Index has fallen 10.2 percent from a high mark set Sept. 20.
U.S. stocks closed lower Friday, bumping the benchmark S&P 500 index into a correction, or drop of 10 percent or more from its recent all-time high in September.
Energy companies led the market slide as the price of U.S. crude oil tumbled to its lowest level in more than a year, reflecting worries among traders that a slowing global economy could hurt demand for oil.
“Oil is really falling sharply, continuing its downward descent, and that appears to be giving investors a lot of concern that there’s slow- ing global growth,” said Jeff Kravetz, regional investment director at U.S. Bank Private Wealth Management. “You
that, and then you have the recent sell-off in tech and in retail, and then throw on there trade tensions and rising rates.”
Losses in technology and internet companies and banks outweighed gains in health care and household goods stocks. Several big retailers declined as investors monitored Black Friday for signs of a strong holiday shopping season.
Trading volume was lighter than usual with the markets open for only a half day after the Thanksgiving holiday.
The S&P 500 index fell 17.37 points, or 0.7 percent, to 2,632.56. The index is now down 10.2 percent from its last all-time high set Sept. 20. The last time the index entered a correction was in February.
The Dow Jones Industrial Average lost 178.74 points, or 0.7 percent, to 24,285.95. The Nasdaq composite dropped 33.27 points, or 0.5 per- cent, to 6,938.98. The Russell 2000 index of small- er-company stocks picked up 0.40 points, or 0.03 per- cent, to 1,488.68.
Crude oil prices fell for the seventh straight week on worries that a slowing global economy could hurt demand even as oil produc- tion has been increasing.
The benchmark U.S. crude contract slid 6.3 percent to $51.22 per barrel in New York. That is the lowest since October 2017. Brent crude, the international standard, lost 5 percent to $59.49 per barrel in London.
Saudi Arabia and other OPEC members have recently signaled a willingness to consider production cuts at the oil cartel’s meeting next month. The U.S. has been increasing pressure on Saudi Arabia and OPEC to not cut production, however, a move that could push prices down further.
The slide in oil prices weighed on energy stocks. Concho Resources, a developer and explorer of oil and natural gas proper- ties, slumped 6.3 percent to $126.96.
Tesla fell 3.7 percent to $325.83 after the electric auto maker said it intends to cut prices for its Model X and Model S cars in China to make them more affordable.
Traders had their eye on retailers as Black Friday, the traditional start to the crucial holiday shopping season, began. Shares in L Brands, operator of Victoria’s Secret and Bath & Body Works, added 2 per- cent to $29.97. Other retail- ers put investors in a sell- ing mood. Kohl’s fell 3.7 per- cent to $63.83, while Target lost 2.8 percent to $67.35. Macy’s dropped 1.8 percent to $32.01.
Rockwell Collins climbed 9.2 percent to $141.63 after Chinese regulators condi- tionally approved the sale of the maker of communications and aviation elec- tronics systems to United Technologies Corp.
Investors will be watching next week when Pres- idents Xi Jinping of China and Donald Trump meet at the Group of 20 summit in Argentina for signs the two leaders can find common ground to begin unwinding the spiraling trade dispute.