U.S. stocks skid as Apple pulls tech companies lower
NEW YORK — U.S. stocks took their biggest loss in three weeks Thursday after a late sell-off. Apple, which is mired in a slump, fell to its lowest price in about two months and dragged the tech sector sharply lower.
Tech stocks, which rose early on thanks to earnings gains from Facebook and PayPal, slumped after billionaire investor Carl Icahn disclosed that he’d sold his stake in Apple. Icahn wasn’t a major shareholder in the tech giant, but his moves are watched closely.
The Dow Jones industrial average lost 210.79 points, or 1.2 percent, to 17,830.76. The Standard & Poor’s 500 index fell 19.34 points, or 0.9 percent, to 2,075.81. The Nasdaq composite closed lower for the sixth day in a row, losing 57.85 points, or 1.2 percent, to 4,805.29. That index has struggled in part because Apple, the most valuable public company in the world, has fallen 15 percent in two weeks.
Let’s make a deal
Meanwhile, a handful of stocks moved on deal news. Most of those were in health care.
•In the largest, medical device maker Abbott Laboratories said it will buy St. Jude Medical, combining Abbott’s heart devices, heart valve products and infant formula business with St. Jude’s heart failure and heart rhythm device products. St. Jude rocketed $15.84, or 25.6 percent, to $77.79 while Abbott fell $3.41, or 7.8 percent, to $40.42.
•French drugmaker Sanofi went public with an offer to buy cancer drug maker Medivation for $9.3 billion, or $52.50 per share. Medivation, the maker of the prostate cancer medication Xtandi, added $4.12, or 7.9 percent, to $56.17.
•Drugmaker AbbVie said it will buy privately held Stemcentrx for $5.8 billion. Stemcentrx is developing a drug that uses stem cells to treat small cell lung cancer. AbbVie stock rose 50 cents to $61.20.
•Comcast’s NBCUniversal unit will buy DreamWorks Animation for $3.55 billion. See story, at left.
•Hanesbrands, a maker of underwear, T-shirts and socks, said it will buy the biggest maker of underwear in Australia. The company said its offer values Pacific Brands Ltd. at $800 million. Hanesbrands also has made a series of deals to give it more control of the Champion brand overseas. The stock jumped $1.74, or 6.3 percent, to $29.53.