Stocks wilt after new Clinton e-mail inquiry

Baker Hughes makes gains after news of possible deal with General Electric; oil falls to $48.70 a barrel.

A midday advance on the stock market wilted in afternoon trading Friday after the FBI notified Congress that it will investigate new e-mails linked to Democratic presidential candidate Hillary Clinton.

The market had started out on a strong note after the government reported that the economy broke out of a slump in the third quarter and grew at the fastest pace in two years.

The early climb was led by industrial, energy and technology companies, which would stand to benefit most from a pickup in economy, but the gains disappeared after the FBI made its announcement.

Clinton has led in recent polls, and the surprise development added new uncertainty just a week and a half before the presidential election.

“I think the betting has to be that there’s nothing too damning, but we don’t know,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

The Dow Jones industrial average closed down 8.49 points, less than 0.1 percent, at 18,161.19. The index was 80 points higher shortly before the new inquiry was disclosed, then went down as much as 74 points in the minutes that followed.

The Standard & Poor’s 500 index dipped 6.63 points, or 0.3 percent, to 2,126.41. The Nasdaq composite slid 25.87 points, or 0.5 percent, to 5,190.10.

Health care companies took the biggest losses by far. Prescription drug distributor McKesson plunged to a three-year low after its revenue fell about $1.5 billion short of estimates. The company slashed its annual outlook because of weaker drug prices, and investors worried that McKesson and its rivals will compete by making bigger cuts in prices.

McKesson tumbled $36.39, or 22.7 percent, to $124.11 and competitor AmerisourceBergen lost $10.36, or 13 percent, to $69.14 while Cardinal Health shed $7.30, or 9.8 percent, to $67.50.

Amgen gave up $15.39, or 9.6 percent, to $145.18. It was the stock’s worst one-day loss since October 2000. Drugmaker AbbVie disclosed weak sales and lost $3.86, or 6.3 percent, to $57.60.

General Electric and oil and gas drilling services company Baker Hughes rose as they discussed a possible deal. GE said the discussions concern a partnership and that it doesn’t intend to buy Baker Hughes outright. GE added 59 cents, or 2.1 percent, to $29.22 and Baker Hughes gained $4.57, or 8.4 percent, to $59.12.

AB InBev cut its annual revenue forecast following weak results from its business in Brazil. The world’s largest beer maker fell $4.62, or 3.8 percent, to $116.84.

U.S. crude fell $1.02, or 2.1 percent, to $48.70 a barrel in New York. That was its lowest price this month. Brent crude, the international standard, lost 76 cents, or 1.5 percent, to $49.71 a barrel in London.