Please try another search
By Sinéad Carew
(Reuters) - U.S. stocks slumped on Friday as weak data from China and Europe stoked fears of a global economic slowdown, while Johnson & Johnson slid after Reuters reported the company knew for decades that asbestos lurked in its Baby Powder.
Investors worried about global growth after China reported weak monthly retail sales growth and industrial output numbers, as disappointing economic data was released from Euro zone.
The Johnson & Johnson (N:JNJ) report, which the company has disputed, sent its shares tumbling 10.2 percent in heavy volume, making it the biggest drag on the S&P 500 and the Dow Industrials.
The pharma major also pulled down the S&P healthcare index (SPXHC) 3.6 percent, making it the biggest decliner among the 11 major sectors. The technology index (SPLRCT), which includes a number of companies with global operations, especially China, dropped 2.4 percent.
Strong U.S. retail sales data appeared to have little impact on markets, with the S&P retail sector <.SPXRT> falling 2 percent.
"Solid fundamental data that gets to the core of the U.S. economy is overshadowed by the potential for a global slowdown washing up on our shores," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.
But Blancato said he does not buy the thesis that slowing growth outside of the United States will hurt the U.S. economy and that the decline was a buying opportunity.
At 2:57 p.m. EST (1947 GMT), the Dow Jones Industrial Average (DJI) was down 472.77 points, or 1.92 percent, to 24,124.61, the S&P 500 (SPX) lost 47.63 points, or 1.80 percent, to 2,602.91 and the Nasdaq Composite (IXIC) dropped 140.11 points, or 1.98 percent, to 6,930.22.
The market has struggled this week with choppy trading and has failed to hold on to opening levels in magnitude or direction on concerns ranging from U.S.-China trade talks, interest rates and a flattening U.S. Treasury yield curve to uncertainty over the shape of Brexit.
But investors appeared to shrug off Beijing's announcement it would suspend additional tariffs on U.S.-made vehicles and auto parts for three months starting Jan. 1.
The S&P healthcare sector was last down 3.5 percent followed by a 2.7 percent decline in the energy index (SPNY) and technology stocks, which were down 2.4 percent.
Costco Wholesale Corp (O:COST) dropped 9 percent after reporting a fall in quarterly gross margin and was the biggest laggard in consumer staples.
Walgreens Boots Alliance Inc (O:WBA) was another healthcare stock that declined, down 4.5 percent, after Goldman Sachs (NYSE:GS) downgraded the drugstore owner's shares.
Apple Inc (O:AAPL) fell 2.8 percent, with some reports citing a top analyst slashing an iPhone sales estimate for the decline.
Declining issues outnumbered advancing ones on the NYSE by a 3.90-to-1 ratio; on Nasdaq, a 2.96-to-1 ratio favored decliners.
The S&P 500 posted nine new 52-week highs and 84 new lows; the Nasdaq Composite recorded six new highs and 367 new lows.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.