US Stocks Drop Again on China Woes
US Stocks Drop Again on China Woes
NEW YORK (AP) -- U.S. stocks are skidding again Thursday on spreading fears about the health of China's economy. Technology stocks were among the hardest hit.
China's stock market sank about 7 percent Thursday after the yuan fell to its lowest level compared to the dollar since March 2011. Trading was automatically suspended as a result.
The Dow Jones industrial average skidded 187 points, or 1.1 percent, to 16,721 as of 10:25 a.m. Eastern. The Standard & Poor's 500 index lost 24 points, or 1.2 percent, to 1,965. The Nasdaq composite index fell 78 points, or 1.6 percent, to 4,755.
Microsoft was the biggest loser on the Dow, and Apple, the world's largest publicly traded company, is trading at its lowest price since October 2014.
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Other global markets also declined. Germany's DAX slid 2.6 percent, the France CAC 40 gave up 1.9 percent, and Britain's FTSE 10 lost 2 percent.
China's stock market has skidded this year as the government prepares to remove measures that were introduced last year to prop up share prices after a meltdown in June. Investors are also concerned that the government is letting the yuan get weaker because that may be a bad sign for the health of China's economy, the second-largest in the world.
U.S. crude fell 21 cents, or 0.6 percent, to $33.79 a barrel in New York. Brent crude, a benchmark for international oils, lost 11 cents, or 0.3 percent, to $34.14 a barrel in London. On Wednesday the price of U.S. crude closed at its lowest since December 2008.
Energy companies felt more pain. Anadarko Petroleum gave up $2.13, or 4.9 percent, to $41.64 and Ensco lost 74 cents, or 5.5 percent, to $12.76.
Several mining companies also fell along with the price of copper. Freeport-McMoRan lost 38 cents, or 6.2 percent, to $5.79.
While all 10 industrial sectors of the S&P 500 traded lower, some retail stocks performed well. Macy's shares, which have been in declined since November, rose $1.37, or 3.8 percent, to $37.50 after the company said it will close 40 stores and eliminate more jobs.
Teen retailer Zumiez raised its guidance for the fiscal fourth quarter, and shares gained $3.07, or 20.4 percent, to $18.15. Urban Outfitters advanced 93 cents, or 4.2 percent, to $22.85.
The euro rose to $1.0844 from $1.0788. The dollar fell to 118.14 yen from 118.38 yen late Thursday. The yield on 10-year Treasury bond was unchanged at 2.17 percent.
(KA)