US Stocks Join Global Slump

NEW YORK (AP) -- U.S. stocks are falling Thursday morning, following global markets lower, after a steep drop in China's exports. Mining and chemicals companies and banks are taking some of the largest losses. China is the second-largest economy in the world its weakness could slow down growth in the U.S.

KEEPING SCORE: The Dow Jones industrial average sank 178 points, or 1 percent, to 17,966 as of 10:05 a.m. Eastern time. The Standard & Poor's 500 index fell 23 points, or 1.1 percent, to 2,115. The Nasdaq composite lost 67 points, or 1.3 percent, to 5,172.

CHINA WORRIES: China's exports fell 10 percent in September compared to a year ago. That was a much bigger drop than in August and also a larger decline than analysts expected. China has been critical to global economic growth for a quarter century. Since the summer of 2015, stocks have periodically been roiled by worries that China's economy was weakening.

FALLOUT: Miners and other companies that make basic materials fell the most in early trading. Many of those companies rely heavily on exports to China. Copper and gold producer Freeport-McMoRan gave up 72 cents, or 7.2 percent, to $9.33. Fertilizer maker Mosaic shed 93 cents, or 3.9 percent, to $22.86 while chemicals maker DuPont lost $1.01, or 1.5 percent, to $67.77. Paper and packaging company International Paper sank 95 cents, or 2 percent, to $45.44.

BONDS: Bond prices rose sharply and yields turned lower. The yield on the 10-year Treasury note slid to 1.73 percent from 1.77 percent. That hurt banks, as it's a sign investors think interest rates will stay low and banks won't be able to make as much money from lending. Bank of America fell 35 cents, or 2.2 percent, to $15.68 and Citigroup skidded 99 cents, or 2 percent, to $15.68.

GLOBAL SLUMP: France's CAC 40 retreated 1.7 percent and Germany's DAX fell 1.5 percent. The FTSE 100 in Britain was down 1.2 percent. In Japan the Nikkei 225 lost 0.4 percent while South Korea's Kospi fell 0.9 percent. The Shanghai Composite Index was an exception, as it rose 0.1 percent. Thailand's benchmark index sank 2.4 percent after the death of King Bhumibol Adulyadej. The king had reigned for 70 years, making him the longest serving head of state in the world.

FLIGHT DELAYS: Delta fell after it reported a strong profit but disappointing revenue. The company's business is being hurt by lower airfares and rising salaries even though fuel remains cheap. That could mark the end of a very strong profit run for airlines. Delta lost $1.01, or 2.6 percent, to $38.26 while United declined $1.17, or 2.2 percent, to $51.71.

THING OF BEAUTY: Ulta Salon climbed after it raised its guidance and gave strong estimates for the third quarter. The beauty products retailer rose $13.71, or 5.1 percent, to $252.68.

ALL ABOARD: Railroad operator CSX was one of the few gainers in early trading. Its earnings were better than expected even though coal volumes keep falling, and the stock rose 29 cents, or 1 percent, to $30.50.

OIL: Benchmark U.S. crude oil lost 9 cents to $50.09 per barrel in New York. Brent crude, the international standard, slipped 4 cents to $51.77 a barrel in London.

PUT IT ON EBAY: Mercadolibre, which runs an online marketplace and payments system in Latin America, slumped after it said eBay will sell most of its investment in the company. EBay owns about 8.1 million shares of Mercadolibre and will sell 5.5 million. Mercadolibre lost $13.56, or 7.4 percent, to $169.65.

CURRENCIES: The dollar fell to 103.50 yen from 104.25 yen. The euro rose to $1.1026 from $1.1011.

(KA)