Chinese market dive pressures US stocks

GMT 22:22 2015 Monday ,27 July

Arab Today, arab today Chinese market dive pressures US stocks

Wall Street
New York - AFP

Wall Street equities slid Monday after a big drop in the Chinese stock market sparked worries about global economic growth.

The Dow Jones Industrial Average shed  127.94 points (0.73 percent) at 17,440.59.

The broad-based S&P 500 fell 12.01 (0.58 percent) to 2,067.64, while the tech-rich Nasdaq Composite Index dropped 48.85 (0.96 percent) to 5,039.78.

Equity markets around the globe retreated after the Shanghai stock exchange plummeted 8.48 percent on fears the Chinese government will pull back on support measures that have stabilized the market the last three weeks. Key commodities, including oil and copper, also fell.

"The marketplace is trying to wrestle with whether we see a global economic slowdown that's being predicted by a sell-off of commodities," said Art Hogan, chief market strategist at Wunderlich Securities.

Large bank stocks fell with Dow member JPMorgan Chase, Citigroup and Bank of America each losing 1.3 percent.

High-flying technology stocks were another weak area. Facebook lost 2.9 percent, Netflix fell 2.7 percent and Tesla Motors dropped 4.6 percent. Apple shed 1.4 percent.

Petroleum-linked stocks also dropped, including Dow member Chevron (-1.6 percent), Anadarko Petroleum (-2.3 percent) and EOG Resources (-2.6 percent).

US-listed Chinese companies declined, with e-commerce giant Alibaba losing 2.0 percent and online retailer falling 7.2 percent.

Allergan rose 6.1 percent after reaching a deal to sell its generic drug business to Israeli giant Teva Pharmaceutical Industries for $40.5 billion. Teva jumped 16.4 percent.

Teva said it was abandoning an effort to buy rival Mylan, which sank 14.4 percent. But Perrigo, which has opposed efforts to be acquired by Mylan, rose 3.8 percent.

McGraw Hill Financial fell 5.7 percent after announcing it would acquire data and analytics firm SNL Financial for $2.23 billion.

Dow member General Electric advanced 0.8 percent on news that French industrial giant Alstom agreed to reduce the price of its sale of energy assets to GE by 300 million euros ($332.8 million) to support the US company's efforts to win approval for the deal from European regulators.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.22 percent from 2.26 percent Friday, while the 30-year declined to 2.94 percent from 2.96 percent. Bond prices and yields move inversely.


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