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US stocks broadly lower in morning trading; oil prices slide
January 29, 2018(AP)(STL.News)-U.S. stocks were broadly lower in morning trading Monday, pulling back from the market’s recent record highs. Technology stocks accounted for much of the slide. Industrials companies also posted big losses. Energy stocks declined as crude oil prices headed lower. Investors were weighing the latest corporate deal news, including Keurig’s acquisition of Dr. Pepper Snapple.
KEEPING SCORE: The Standard & Poor’s 500 index fell 11 points, or 0.4 percent, to 2,861 as of 11:38 a.m. Eastern Time. The Dow Jones industrial average slid 93 points, or 0.4 percent, to 26,523. The Nasdaq composite lost 27 points, or 0.4 percent, to 7,478. The Russell 2000 index of smaller-company stocks gave up 6 point, or 0.4 percent, to 1,601. The stock market is coming off its biggest single-day gain since March 2017.
DRINK IT UP: Dr. Pepper Snapple Group jumped 23.5 percent after it agreed to be acquired by Keurig for $16.6 billion, including debt. The deal would create a beverage giant with about $11 billion in annual sales. The companies, both the result of previous mergers, would combine global brands like Dr. Pepper, 7UP, Snapple, A&W, Mott’s, Sunkist and Keurig’s single-serve coffee makers. Dr. Pepper Snapple shareholders will receive $103.75 per share in a special cash dividend and keep 13 percent of the combined company. Dr. Pepper Snapple shares added $22.45 to $118.10.
PAPER DEAL: KapStone Paper and Packaging Corp. soared 29.6 percent after it agreed to be bought by rival WestRock for $35 a share, or $3.39 billion. KapStone shares gained $7.87 to $34.41. WestRock slid $1.65, or 2.3 percent, to $68.62.
X FACTOR: Apple shares slid 1.5 percent amid growing investor worries that the iPhone X has not been a hit with customers. Shares in the technology giant have been declining for several days, erasing billions of the company’s market capitalization. The company is scheduled to report first-quarter earnings Thursday. The stock was down $2.59 to $168.92.
TECHNOLOGY SLUMP: A slide in technology sector stocks pulled the market lower. Lam Research lost $7.41, or 3.7 percent, to $195.16.
A DEEPER HOLE: Industrials stocks also headed lower in morning trading. Caterpillar gave up $4.17, or 2.5 percent, to $162.89.
STRONG QUARTER: Lockheed Martin was trading higher after the defense contractor’s latest quarterly results beat financial analysts’ expectations. The stock added $1.57 to $346.47.
ENERGY: Benchmark U.S. crude fell 57 cents to $65.57 a barrel on the New York Mercantile Exchange. It rose 63 cents on Friday. Brent crude, used to price international oils, dropped $1.09 to $69.43 per barrel.
The slide in gas prices weighed on energy sector stocks. Chesapeake Energy fell 12 cents, or 2.9 percent, to $3.89.
BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.70 percent from 2.66 percent late Friday. The rise in bond yields helped lift shares in some banks. Goldman Sachs gained $4.34 or 1.6 percent, to $272.48.
CURRENCIES: The dollar, which last week fell sharply after U.S. officials said they accepted a weaker value for the currency, rose to 109.12 yen from 108.66 late Friday. The euro fell to $1.2351 from $1.2423. The ICE US dollar index is at three-year lows and has declined for six consecutive weeks.
THE BITCOIN TRADE: The price of bitcoin was down about 4 percent in morning trading Monday to $11,222, according to the tracking site CoinDesk. Bitcoin futures on the Cboe Futures Exchange were up 2.4 percent to $11,200. The futures allow investors to make bets on the future price of bitcoin.
MARKETS OVERSEAS: Germany’s DAX slipped 0.1 percent, while France’s CAC 40 fell 0.1 percent. Britain’s FTSE 100 added 0.2 percent. In Asia, Japan’s benchmark Nikkei 225 finished flat, while Hong Kong’s Hang Seng index lost 0.6 percent. South Korea’s Kospi gained 0.9 percent and the S&P ASX/200 in Australia added 0.4 percent.
By Associated Press, published on STL.NEWS by St. Louis Media, LLC (TM)
