Sunday, 16 December, 2018

Tech giants slide, pulling U.S. stock market sharply lower

Tech stocks are getting slammed, Dow drops more than 400 points Tech giants slide, pulling US stock market sharply lower
Nellie Chapman | 15 November, 2018, 06:30

The Dow Jones Industrial Average plummeted by 602.12 points or 2.23% at the closing bell on Monday amid a firming US dollar, according to MarketWatch.

Feeding onto the outlook, Wells Fargo gave Apple a market perform rating and said "investors could consider Lumentum's updated guide as reflecting as much as a 30% cut in Apple orders", according to CNBC. Banks, consumer-focused companies, and media and communications stocks all took heavy losses.

The Dow Jones Industrial Average was off by more than 500 points or roughly two per cent to 25,493 as technology companies like Microsoft, Intel, Cisco and Apple were all sharply lower.

The Dow Jones Industrial Average fell 495 points, or 1.9 per cent, to 25,496. The Nasdaq Composite Index fell 165.59 points, or 2.24 percent, to 7,241.32. The S&P 500 traded 0.1 percent lower, erasing earlier gains.

Tuesday's moves come after the Dow dropped 602 points on Monday as Apple shares dropped on expectations of slowing iPhone sales. Shares of Align Technology and NVIDIA slid 7.91 percent and 7.84 percent, among the worst performers in the Nasdaq.

Amazon slid 4.4 percent to $1,636.85.

Lumentum shares plunged 33%.

KEEPING SCORE: In Europe, Germany's DAX advanced 0.7 percent to 11,409 and France's CAC 40 added 0.4 percent to 5,081.

Wall Street's major indexes tumbled on Monday as shares of Apple and Goldman Sachs dragged down the technology and financial sectors. Russian oil minister Alexander Novak said at a meeting of oil producers in Abu Dhabi that his country was open to cuts.

"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. Oil gained about $1 to just over $60 USA per barrel, late in the trading day.

Saudi Arabia, the world's largest oil exporter, said on Sunday it would cut its shipments by half a million bpd in December due to seasonal lower demand.

Athenahealth jumped 9.6 per cent after the struggling medical billing software maker received a buyout offer.

Elsewhere, oil prices fell more than 2 percent Tuesday, with Brent crude slipping below the $70-per-barrel mark and U.S. West Texas Intermediate crude dropping below the $60 threshold. Brent crude, used to price worldwide oils, dipped 0.1 percent to close at $70.12 per barrel in London. The euro rose to $1.1252 from $1.1218.

The Russell 2000 is down 34.69 points, or 2.2 per cent.

Hong Kong's Hang Seng closed the day up 0.1 percent. Britain's FTSE 100 shed 0.7 percent.

The S&P 500 added 0.06% to settle at 2,727.