Thursday, April 07, 2016

US stocks slump broadly, led by banks

Marley Jay, Ap Markets Writer

Updated 2:17 pm, Thursday, April 7, 2016

This July 9, 2015 photo shows a Wall Street sign near the New York Stock Exchange in New York. Stock markets turned lower in European trading on Thursday, April 7, 2016 as a rebound in oil prices ran out of ... more Photo: Seth Wenig, AP

US stocks slump broadly, led by banks

NEW YORK (AP) — U.S. stocks are sinking toward their biggest loss in two months Thursday as banks and technology companies skid. Bond yields are falling and the dollar continues to weaken compared to the Japanese yen. Stocks are on pace to fall for the third day this week.

KEEPING SCORE: The Dow Jones industrial average fell 227 points, or 1.3 percent, to 17,488 as of 3:01 p.m. Eastern time. The Standard & Poor's 500 index shed 32 points, or 1.6 percent, to 2,034. The Nasdaq composite index lost 88 points, or 1.8 percent, to 4,832.

BROAD SLUMP: All 10 industrial sectors of the S&P 500 traded lower. Financial companies took some of the largest losses. Goldman Sachs slid $5.19, or 3.3 percent, to $150 and Citigroup lost $1.87, or 4.5 percent, to $39.99 while JPMorgan Chase dipped $1.73, or 3 percent, to $57.08.

Scott Wren, senior global equity strategist for Wells Fargo's Investment Institute, said banks are struggling because interest rates remain low and economic growth is sluggish.

WHERE TO: Stocks have gradually lost momentum over the last few weeks after a furious rally that wiped out most of their losses from early 2016. Wren said stocks are rising and falling based on how investors expect the global economy to do.

"People are worried about growth today," he said. "It's the same fears that have been kind of going back and forth in the market for a year or more."

LOSING: eBay led tech stocks lower as it fell $1.41, or 5.5 percent, to $24.02 and Apple gave up $2.40, or 2.2 percent, to $108.56. Telecommunications companies continued to struggle and Verizon fell $1.58, or 2.9 percent, to $51.94.

WYNN-ING: Wynn Resorts jumped $8.77, or 9.8 percent, to $98.32 after the hotel and casino company proposed a new development. Wynn said it wants to build a recreational lake and hotel behind its Wynn Las Vegas property.

ENERGY: Benchmark U.S. crude fell 49 cents, or 1.3 percent, to $37.26 per barrel in New York. Brent crude, used to price international oils, dropped 41 cents to $39.43 a barrel in London.

BONDS, CURRENCIES: U.S. government bond prices rose. The yield on the 10-year U.S. Treasury note fell to 1.69 percent from 1.76 percent. The dollar continued to weaken against the yen, falling to 108.37 from 109.62 yen. The dollar is at its lowest price compared to the yen in almost a year and a half. The euro declined to $1.1364 from $1.1410.

TAP THE BRAKES: Used car dealership chain CarMax reported strong fourth-quarter results, but its stock lost $4.47, or 8.4 percent, to $48.82. The company said it faced a tougher sales environment in the second half of the fiscal year.

RETAIL RESULTS: Wholesale club operator Costco declined after the company disclosed its March sales. Its stock fell $5.18, or 3.3 percent, to $151.59. Retailer Ollie's Bargain Hunting Outlet Holdings traded higher after it announced solid quarterly results. The stock climbed $2.23, or 9.8 percent, to $24.93.

METALS: The price of gold rose $13.70 or 1.1 percent, to settle at $1,237.50 an ounce and silver gained 10 cents to $15.16 an ounce. Copper plunged seven cents, or 3.1 percent, to $2.08 a pound.

OTHER ENERGY TRADING: Wholesale gasoline fell 1 cent to $1.38 a gallon. Heating oil slipped 1 cent to $1.13 a gallon. Natural gas rose 11 cents, or 5.6 percent, to $2.02 per 1,000 cubic feet.

GOOD FIT: HanesBrands said it will buy Champion Europe. HanesBrands owns Champion and the deal gives it control of a company that owned the Champion trademark in Europe as well as the Middle East and Africa. It recently made a similar deal in Japan unit as well. The underwear, T-shirt and sock maker's stock added 54 cents, or 2 percent, to $27.64.

EAT UP: ConAgra Foods added 50 cents to $45.93. The maker of Chef Boyardee, Hebrew National hot dogs and other packaged foods reported third-quarter profit and sales were stronger than expected.

UNEMPLOTMENT AID: Applications for unemployment benefits fell slightly last week, according to the Labor Department. That shows employers aren't slashing jobs even though there are signs economic growth is weak.

OVERSEAS: Germany's DAX fell 1 percent and the CAC-40 in France shed 0.9 percent. Britain's FTSE 100 lost 0.4 percent. In Tokyo, the Nikkei 225 advanced 0.2 percent and Hong Kong's Hang Seng added 0.3 percent. Seoul's Kospi added 0.1 percent.


AP Markets Writer Marley Jay can be reached at His work can be found at


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