Stocks lose ground on hectic day

Stocks lose ground on hectic day

Stocks lose ground on hectic day

Stocks are opening broadly lower on Wall Street, a day after a massive surge, as a number of big companies reported disappointing results.

The tech-heavy Nasdaq composite lost 151.12 points, or 2.1 percent, to 7,167.21.

Shares fell moderately in Asia on Thursday after another torrent of selling gripped Wall Street overnight, sending the Dow Jones Industrial Average plummeting more than 600 points and erasing its gains for the year.

The Dow dropped 307 points, or 1.2 percent, to 24,676.

For the S&P 500, a 10 percent decline could push the USA index into correction territory.

The Dow tumbled 608.01 points, or 2.4 percent, to 24,583.42.

All of the 11 major S&P sectors were in the red, with the communication services taking the steepest hit with a 2.06 percent fall and technology stocks down 1.48 percent. Helped by tax cuts, the economy expanded at a 4.2 percent annual pace from April through June, fastest in almost four years.

USA stocks recovered some of their losses Friday following a steep slide in early trading, but the drop was enough to push the benchmark S&P 500 index back into the red for the year.

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Commodities: Brent crude -1.2pc at $US75.51/barrel, spot gold +0.2pc $US1,232.43/ounce, iron ore +0.6pc at $US74.73/tonne. The Nasdaq Composite shed more than 2%, and the S&P 500 ended down 1.7% after briefly dipping into correction territory. Technology and consumer-focused companies accounted for much of the slide. Netflix gave back 9.4 percent to $301.83 and Amazon dropped 5.9 percent to $1,664.20.

HIGH FLYER: Boeing rose 2.3 percent to $358.03 after the defense contractor's latest quarterly results topped analysts' forecasts. AT&T, however, reported a 7.5 percent drop in quarterly results.

Texas Instruments dropped 8.2 percent, helping pull the Philadelphia Semiconductor index down 6.6 percent in its biggest daily percentage drop since October 2014. UPS fell 3 percent.

U.S. trade wars, Federal Reserve rates policy, and the dispute between Italy and the European Union are also pressuring the markets.

On Wednesday, data showed sales of new US single-family homes fell to a near two-year low in September, the latest sign that rising mortgage rates and higher prices were hurting demand for housing.

More reports are due later Thursday in the USA, including from Google parent company Alphabet, Amazon.com, Twitter and Comcast.

Some investors, including David Meier, a portfolio manager at Motley Fool Asset Management, say the sense that stock prices have simply reached their peak is driving the markets, too. Futures markets for Japan's Nikkei index are also down more than 2%. On Wednesday it edged up 0.6 per cent Brent crude, used to price global oils, gained 4 cents to $76.21 a barrel.

The dollar climbed to 112.59 yen from 112.44 yen.

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