Stocks Decline Early Monday
NEW YORK (AP) -- Global stock indexes are declining Monday as investors remain concerned about rising trade tensions between the U.S. and China. Among U.S. stocks, technology and health care companies and banks are taking some of the worst losses. Volkswagen is falling after German authorities detained the CEO of its Audi division as part of an investigation into the manipulation of emissions controls.
KEEPING SCORE: The S&P 500 index fell 17 points, or 0.6 percent, to 2,762 as of 10 a.m. Eastern time. The Dow Jones industrial average dropped 215 points, or 0.9 percent, to 24,874. The Nasdaq composite lost 41 points, or 0.5 percent, to 7,704. The Russell 2000 index fared better, as many investors feel the smaller and more U.S.-focused companies in that index are less vulnerable in the event that a major trade dispute slows growth in the global economy. The Russell fell 1 point, or 0.1 percent, to 1,682.
LOSERS: Among health care companies, Johnson & Johnson lost 1.6 percent to $120.59 and Boston Scientific fell 2.9 percent to $32.02. In technology, Chipmaker Intel shed 4.4 percent to $52.67 and video game maker Electronic Arts skidded 2.1 percent to $143.58. Consumer products company Procter & Gamble gave up 1.5 percent to $76.21 and Colgate-Palmolive declined 2.4 percent to $63.18.
Drug developer PTC Therapeutics jumped 24 percent to $46.57 reported positive results from a study of a drug intended to treat Type 1 Spinal Muscular Atrophy, a genetic disorder that affects infants. However that sent shares of Biogen sharply lower, as PTC's drug could affect sales of Biogen's Spinraza. Biogen lost 5.8 percent to $287.26, while its partner Ionis Pharmaceuticals sank 10.4 percent to $41.72.
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OVERSEAS: The DAX in Germany fell 1.4 percent and the French CAC 40 lost 1.2 percent. Britian's FTSE 100 dipped 0.1 percent.
Japan's benchmark Nikkei 225 index dropped 0.8 percent while South Korea's Kospi lost 1.2 percent. Markets in Hong Kong were closed for the Duanwu Festival commemorating the death of Qu Yuan, an ancient Chinese poet and minister.
U.S.-CHINA TARIFFS: On Friday, President Donald Trump said the U.S. will put tariffs of up to 25 percent on some Chinese imports starting in July. Those tariffs target industrial and agricultural machinery, aerospace parts and communications technology. China said it will raise import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Also on Friday the Trump administration launched an investigation into whether tariffs are needed on automobiles imported to the U.S. as talks with Canada and Mexico over the North American Trade Agreement stalled.
AUDI CEO ARRESTED: German authorities detained the chief executive of Volkswagen's Audi division, Rupert Stadler, as part of a probe into the manipulation of emissions controls. The move is an extension of the emissions scandal that has rocked Volkswagen since 2015 and led to billions in fines, the arrest of executives and the indictment in the U.S. of its former CEO. Volkswagen stock fell in Germany.
DEALS: Chinese e-commerce company JD.com jumped 3.1 percent to $44.96 after Google said it will invest $550 million in the company. Alphabet, Google's parent company, rose 0.3 percent to $1,162. JD rival Alibaba lost 0.6 percent to $206.77.
Rent-A-Center jumped 22 percent to $14.68 after private equity firm Vintage Capital Management agreed to buy it for $15 a share, or $800 million. Clothing company Perry Ellis lost 2.2 percent to $27.36 after founder George Feldenkreis started buying more stock to take the company private for $27.50 a share, or $437 million.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.91 percent from 2.92 percent.
ENERGY: Oil futures were mixed as investors wait for an OPEC meeting later this week. Benchmark U.S. crude was little changed at $65 a barrel in New York. Brent crude, used to price international oils, climbed 1.3 percent to $74.42 a barrel in London.
CURRENCIES: The dollar fell to 110.38 yen from 110.62 yen late Friday. The euro inched up to $1.1608 from $1.1607.
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