Stocks Slide in Early Trade Thursday 11/15 09:45
U.S. stocks moved broadly lower in early trading Thursday, extending the
market's losing streak into a sixth day.
(AP) -- U.S. stocks moved broadly lower in early trading Thursday, extending
the market's losing streak into a sixth day. Losses among retailers,
homebuilders and health care companies outweighed gains in technology stocks.
The slide followed a sell-off in European indexes as the British pound slumped
amid discord over a new deal for Britain's exit from the European Union.
KEEPING SCORE: The S&P 500 index fell 15 points, or 0.6 percent, to 2,686 as
of 10:08 a.m. Eastern Time. The Dow Jones Industrial Average lost 134 points,
or 0.5 percent, to 24,946. The Nasdaq composite dropped 24 points, or 0.3
percent, to 7,111. The Russell 2000 index of smaller companies gave up 6
points, or 0.4 percent, to 1,496.
The benchmark S&P 500 has declined five straight days. The indexes are now
on track to finish the month with a loss.
BREXIT: European markets were jittery over a flare-up in discord over
British Prime Minister Theresa May's plan for Britain's departure from the
European Union next year. She persuaded a majority in her Cabinet to back an
agreement that would allow Britain to stay in a customs union while a trade
treaty is negotiated, but the deal faces an uncertain fate in Parliament and
two of her Cabinet ministers, including the Brexit minister, resigned in
The heightened uncertainty over making sure Britain's departure from the
European Union next year is smooth sent the pound lower against other
currencies and hit British bank stocks. The disarray surrounding the process
has thrown London's future as a financial center into jeopardy. U.S.-listed
shares of Barclay's slid 5.7 percent to $8.49 and Royal Bank of Scotland
plunged 9.4 percent to $5.90.
ROTTEN RETAIL: Several department store chains slumped. J.C. Penney fell 1.6
percent to $1.20 after the company withdrew profit guidance and lowered its
sales expectations for the year. Macy's gave up 4.6 percent to $31.69. Target
dropped 2.9 percent to $80.71.
HOUSE OF PAIN: Homebuilders were trading lower. Lennar declined 3.8 percent
to $40.05, while PulteGroup lost 3.6 percent to $23.67.
TECH RALLY: Technology companies led the gainers. Cisco Systems rose 4.3
percent to $46.24 a day after the company reported quarterly results that
topped Wall Street's forecasts.
ENERGY: Benchmark U.S. crude rose 0.5 percent to $56.60 a barrel in New
York. Brent crude, used to price international oils, gained 1 percent to $66.76
a barrel in London. Natural gas, which spiked Wednesday amid forecasts calling
for a cold snap across much of the Northeast and South, slumped 10 percent to
$4.35 per 1,000 cubic feet.
BOND YIELDS: Bond prices rose as traders continued to shift money into
low-risk assets. That sent the 10-year Treasury note down to 3.09 percent from
3.12 percent late Wednesday.
CURRENCIES: The dollar weakened to 113.25 yen from 113.51 yen on Wednesday.
The euro fell to $1.1305 from $1.1338. The pound plunged to $1.2799 from
$1.3038 on concerns that a new deal to enable the United Kingdom to separate
from the European Union will not get approved by Britain's parliament.
OVERSEAS: Major indexes in Europe fell. German's DAX dropped 0.5 percent and
France's CAC 40 shed 1 percent. London's FTSE 100 slid 0.5 percent. In Asia,
Hong Kong's Hang Seng added 1.7 percent and Tokyo's Nikkei 225 gave up 0.2
percent. Seoul's Kospi gained 1 percent. India's Sensex rose 0.6 percent.
Bangkok and New Zealand declined while Taiwan and other Southeast Asian markets