Wall Street drops on China concerns, oil slide
- by Xavier Trudeau
- in Financer
- — Nov 12, 2018
Prices paid by producers rose 0.6 percent in October - their fastest pace in six years and more than the expected 0.2 percent rise - fuelled by a jump in costs for energy and trade services.
That atmosphere has lent itself to a downdraft in stocks, with the Dow Jones Industrial Average DJIA, -0.89% the S&P 500 index SPX, -1.12% and the Nasdaq Composite Index COMP, -1.92% all trading lower Friday, and indexes in Europe, like the pan-European Stoxx Europe 600 Index SXXP, -0.37% and China's Shanghai Composite Index SHCOMP, -1.39% also in the red. General Electric fell 4.8 per cent after J.P. Morgan cut price target on the stock to US$6 from US$10.
The dollar index .DXY rose 0.19 percent, with the euro EUR= down 0.26 percent to $1.1332.
The S&P index recorded 27 new 52-week highs and six new lows, while the Nasdaq recorded 37 new highs and 82 new lows.
Stocks are falling on Wall Street led by drops in technology and internet companies.
Video game maker Activision Blizzard plunged 10 percent Friday after forecasting weak holiday sales.
"When you look overseas, there's not just concerns about a global slowdown, but a global recession that might be brewing", said Jerry Braakman, chief investment officer of Santa Ana, California-based First American Trust. Brent oil was down more than 19% from its recent October peak.
Online reviews company Yelp plummeted 28 percent after reporting disappointing revenue.
The S&P 500 index fell 30 points, or 1.1 percent to 2,776.
The Dow Jones Industrial Average fell 229 points, or 0.9 percent, to 25,964.
The S&P energy index dropped 0.6 percent after falling 2.2 percent in the previous day's session when USA crude prices confirmed a bear market by falling 20 percent from their most recent high.
Oil prices fell almost 1.0 per cent on Friday, and have now seen the longest stretch of daily declines since 1984, on rising global supply and evidence of a slowing world economy.
The Federal Reserve decision disappointed some investors who had hoped that the sharp share price falls during what has been called "Red October" might have encouraged the USA central bank to take a more dovish approach toward monetary policy.
Declining issues outnumbered advancers for a 2.51-to-1 ratio on the NYSE and for a 2.50-to-1 ratio on the Nasdaq.
Investors appeared unwilling to take on risk, sending the S&P technology index down 2.2 percent as Apple Inc dropped 2.9 percent and semiconductor stocks tumbled 2.7 percent.
Walt Disney rose 3 percent after its profit surpassed analyst estimates thanks to strong studio entertainment revenue.
