Stocks Fall in Early Trade

Stocks Fall in Early Trade

NEW YORK (AP) -- Stocks are falling broadly in early trading Monday, led by declines in health care and real estate companies. Ten of the 11 sectors of the Standard and Poor's 500 index are lower. Janus Capital surges after announcing it is merging with another investment company.

KEEPING SCORE: The Dow Jones industrial average fell 71 points, or 0.4 percent, to 18,237 at 10:07 a.m. Eastern time. The S&P 500 lost 9 points, or 0.4 percent, to 2,160. The Nasdaq composite declined 21 points, or 0.4 percent, to 5,291.

DRUGMAKER DOWNER: Merrimack Pharmaceuticals, which develops cancer drugs, slumped 30 cents, or 4.4 percent, to $6.05 after announcing that it would cut almost a quarter of its workforce and look for a new CEO.

JANUS JUMPS: Janus Capital surged $2.27, or 16 percent, to $16.28 after announcing it would merge with another investment company, Henderson Group.

EUROPE RISING: Britain's FTSE 100 rose 0.9 percent thanks to a sharp drop in the pound, which helps the country's exporters and multinationals. France's CAC 40 slipped 0.3 percent. German markets are closed for a holiday.

POUND DROP: The pound fell 1.1 percent to $1.2833 following comments from Prime Minister Theresa May that the formal process by which Britain leaves the European Union will start by March next year. She signaled that she would prioritize controls on immigration over access to the European single market.

JOBS IN FOCUS: A number of economic reports are due out this week, culminating Friday with the government's monthly jobs survey. Strong jobs numbers might encourage Federal Reserve to raise interest rates again this year.

ASIA'S DAY: Japan's benchmark Nikkei 225 gained 0.9 percent and Hong Kong's Hang Seng rose 1.2 percent. Australia's S&P/ASX 200 rose 0.8. South Korean markets were closed.

ENERGY: Benchmark U.S. crude oil slipped 33 cents to $47.91 a barrel while Brent crude, the international standard, fell 29 cents to $49.91 a barrel in London.

BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 1.62 percent from 1.60 percent. The euro fell to $1.1209 from $1.1237 and the dollar rose to 101.55 yen from 101.41 yen.

(KA)