Stocks Lower on Global Growth Concerns 03/25 10:35
U.S. stocks edged lower in early trading Monday, extending losses from a
broad sell-off last week, as new economic data stoked investors' worries over
slowing global growth.
(AP) -- U.S. stocks edged lower in early trading Monday, extending losses
from a broad sell-off last week, as new economic data stoked investors' worries
over slowing global growth.
Technology companies accounted for much of the decline. Health care and
energy stocks also helped pull the market lower. Chipmaker Nvidia dropped 1.5
percent, UnitedHealth Group fell 1.5 percent and Halliburton gave up 1.7
Industrial companies led the gainers. Norfolk Southern gained 1.2 percent.
A sharp decline in bond yields last week also fueled the wave of selling.
China, the world's second-largest economy after the United States, is
weakening. And other economies that depend heavily on purchases in China have
suffered as a result.
On Monday, another survey showed that business economists foresee a
significant slowdown in U.S. growth over the next two years. That's in sharp
contrast to the Trump administration's predictions that growth will accelerate
in the coming years.
The market's recent skid follows what has been a strong start to the year on
Wall Street as stocks rebounded from a steep slide at the end of 2018. The bull
market for U.S. stocks recently marked its 10th anniversary and is now the
longest of all time.
Monday's shaky start to the week for markets came amid a lull in news on the
tariffs war between the United States and China. Trade talks are due to resume
Thursday in Beijing.
KEEPING SCORE: The Dow Jones Industrial Average fell 110 points, or 0.4
percent, to 25,391 as of 10:10 a.m. Eastern Time. The S&P 500 index dropped 0.4
percent, the Nasdaq composite lost 0.7 percent and the Russell 2000 index of
smaller company stocks slid 0.4 percent.
Despite the market's recent slide, the S&P 500 index is still up more than
11 percent so far in 2019, which is still an unusually strong start to a year.
ECONOMIC JITTERS: Citing a global slowdown and trade conflicts, economists
from the National Association for Business Economics collectively project that
growth will reach a modest 2.4 this year and just 2 percent in 2020. Still, the
economists say they think a recession remains unlikely any time soon.
Worried investors have shifted money into bonds, sending yields lower. The
yield on the 10-year Treasury slid to 2.42 percent from 2.45 percent late
That remains below the yield on the three-month Treasury bill, currently
2.45 percent, a worrying sign that in the past has preceded recessions. That
"inversion" occurred on Friday and has spooked investors.
BLACKOUT AVERTED: Media company Viacom rose 5.1 percent after the company
reached a carriage deal with AT&T that would avert a blackout of its channels
including Comedy Central and MTV to AT&T customers.
DOWNGRADED: Akamai Technologies slid 5.1 percent after analysts at Deutsche
Bank downgraded the stock to "Sell" from "Hold," citing expectations that sales
and earnings will fall short Wall Street forecasts through fiscal 2021.
OVERSEAS: Major European stock indexes headed lower as uncertainty over
Brexit continued. British Prime Minister Theresa May was under intense pressure
to resign as the price of breaking the country's Brexit impasse and winning
support for her unpopular EU divorce deal.