1st LD Writethru: US stocks close sharply lower as retail, tech lag

Randal Sanchez
November 25, 2018

Big technology and internet companies came under heavy selling pressure again on Monday, leading to broad losses across the stock market.

The S&P energy index rose 1.6 per cent as oil prices steadied after a 6 per cent plunge on Tuesday.

The volatility, in what is a short trading week due to Thanksgiving, erased yearly gains for the Dow and the S&P 500, with the Nasdaq Composite on the cusp. The Nasdaq composite rose 105 points, or 1.5 percent, to 7,015. The Russell 2000 index of smaller-company stocks jumped 1.3 percent to 1,488.28.

The Nikkei Average tumbled 296 points, or 1.3 percent, at the start of trading to 21,286. Boeing gave up 4.5 percent to $320.94, but is still one of the best-performing stocks in the 30-stock index. Apple fell 4.2 percent on renewed worries that iPhone sales could slow, Microsoft lost 3.6 percent and Amazon gave back 5.2 percent.

In a sign of just how bad the carnage on Wall Street has been in the recent sell-off, more than 45 percent of the stocks in the S&P 500 are down more than 20 percent from their highs in the past year, according to Bloomberg data. Google's Alphabet shares dropped by 1.4 percent.

MSCI's gauge of stocks across the globe gained 0.75 percent.

Among individual stocks, Dow member Johnson & Johnson dropped 3.1 per cent after a U.S. appeals court refused to block sales of a generic version of its prostate cancer drug Zytiga.

NISSAN: Nissan said Chairman Carlos Ghosn, who engineered a turnaround at the automaker, was arrested and will be fired on charges he underreported his income and misused company funds.

Kohl's and Macy's, also big retailers, plunged 9.23 percent and 3.42 percent respectively.

Oil prices rebounded as benchmark USA crude gained 2.2 per cent to $54.63 a barrel in NY.

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Industrial companies and retailers also stumbled.

ENERGY: Oil prices rebounded Wednesday as benchmark USA crude gained 3.2 percent to $55.13 a barrel in NY.

"Any type of hostility amongst the (European) Union has major implications not only on the European financial system but also the global financial system", Morganlander said. Netflix lost 5.6 percent to $270.21.

The only stocks that rose were utilities and other safe-play companies.

Wholesale gasoline rose 0.4% to $1.58 a gallon. Silver inched up 0.1 percent to $14.40 an ounce.

US crude rose 2.7 percent to $54.87 per barrel.

Bond prices fell. The yield on the 10-year Treasury note rose to 3.08 percent.

OVERSEAS: Germany's DAX and Britain's FTSE 100 both rose 1 per cent.

CURRENCIES: The dollar was flat at 112.95 yen. The euro declined to $1.1452 from $1.1454. South Korea's Kospi gained 0.4 percent.

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