U.S. stocks tumble, led by tech giants

Cornelia Mascio
Novembre 14, 2018

The Nasdaq Composite index fell about 2.5 per cent on Monday, hit by a slump in Apple Inc shares after two suppliers cut their forecasts, sparking a selloff in other iPhone component makers and weighing on technology stocks in general. The tech-heavy index now has a slight loss for the year.

Lumentum shares plunged 33%.

The Dow is up 0.3%, or about 74 points, at 25460, while the S&P 500 was up 0.8%, and the Nasdaq Composite was up 1.2%.

"The valuation in tech sector could potentially go lower and the semiconductors are really going to weigh in the near-term, especially with the fresh releases in numbers and the China situation", said Lindsey Bell, investment strategist at CFRA Research in NY.

The stock market was coming off a two-week winning streak for the benchmark S&P 500. Goldman Sachs was the biggest drag on the Dow, which fell more than 2 percent. The S&P 500 technology sector index fell 3.5 percent, and the financial sector index fell 2.0 percent. Bond trading was closed for Veterans Day. Amazon gave up 3.9 percent to $1,645.64. "Expectations are really that the deregulation process that has benefited banks up to this point is going to be slowed down with the Democrats in charge", Bell said.

At 11:32 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 117.76 points, or 0.77 per cent, at 15,156.74.

Athenahealth jumped 9.6 percent after the struggling medical billing software maker received a $5.7 billion cash buyout offer.

MAJOR MAKEOVER: Shares in cosmetic maker Coty added 3.6 percent to $8.80 after the company said CEO Camillo Pane, who led the company for two years, has resigned for family reasons.

The Canadian dollar edged higher against a broadly stronger USA dollar on Monday, supported by a bounce in the price of oil, but remained close to the multi-month low touched on Friday.

ENERGY: Benchmark U.S. crude gave up an early gain, sliding 0.2 percent to $60.06 per barrel in NY.

Brent crude futures were up 70 cents at $70.88 a barrel, following four sessions of losses. Oil futures rose earlier on news that Saudi Arabia and other major producers planned to reduce output. Saudi Arabian energy minister Khalid al-Falih said Sunday that the kingdom will reduce exports by around 500,000 barrels a day from November to December.

The dollar strengthened to 113.86 yen from 113.80 yen on Friday. Gold has fallen to its lowest level in a month as the U.S. dollar rose.The dollar index which measures the greenback versus a basket of currencies jumped 0.7 per cent on Monday to a 17-month high.

Major stock indexes in Europe also ended lower Monday.

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