US Stocks Lower Early Monday 03/19 09:45
A sharp loss for Facebook is helping to pull technology companies lower as
U.S. stock indexes decline Monday morning.
NEW YORK (AP) -- A sharp loss for Facebook is helping to pull technology
companies lower as U.S. stock indexes decline Monday morning. The social media
company is facing new criticism related to privacy issues following reports a
data mining firm working for the Trump campaign improperly obtained and then
kept data on tens of millions of users. The British pound is rising and
European stocks are down after Britain and the European Union said they are
getting closer to a deal that will complete Britain's departure from the EU.
KEEPING SCORE: The S&P 500 index slipped 21 points, or 0.8 percent, to 2,730
as of 10:15 a.m. Eastern time. The Dow Jones industrial average fell 218
points, or 0.9 percent, to 24,728. The Nasdaq composite gave up 86 points, or
1.2 percent, to 7,395. The Russell 2000 index of smaller-company stocks
declined 12 points, or 0.8 percent, to 1,573.
UNFRIENDED: Facebook said Friday that the data mining company Cambridge
Analytica improperly obtained data on some of its users, and that it had
suspended Cambridge while it investigates. The New York Times and the Guardian
reported that Cambridge was able to tap the profiles of more than 50 million
Facebook users without their permission. Facebook dropped as legislators in the
U.S. and the U.K. criticized the company, which has also come under fire for
its role in spreading Russian-linked propaganda during the 2016 election
Facebook sank $10.58, or 5.7 percent, to $174.41. That put the stock on pace
for its biggest loss since November 2016.
Other technology companies also struggled. Alphabet, Google's parent
company, lost $25.50, or 2.2 percent, to $1,108.92 and Microsoft slid $1.22, or
1.3 percent, to $93.38.
BYE-BYE BRITAIN: Representatives of Britain and the European Union said they
made progress on the terms of Britain's departure from the bloc. British envoy
David Davis said important steps have been made in the last few days and he
thinks EU leaders will back them in a meeting Thursday and Friday. Britain is
scheduled to officially leave the EU on March 29, 2019.
The pound rose to $1.4058 from $1.3938. The British FTSE 100 index fell 1.3
percent while Germany's DAX fell 0.9 percent. France's CAC-40 was 0.5 percent
JUST ANOTHER MERGER MONDAY: Internet technology company CSRA rose 51 cents,
or 1.3 percent, after CACI International offered to buy it for $44 a share in
cash and stock, or about $7.2 billion. Defense contractor General Dynamics
agreed to buy CSRA in February for $40.75 a share in cash, or about $6.8
billion. General Dynamics said it's proceeding with that offer, suggesting it
doesn't plan to raise its price.
CACI fell $10.10, or 6.4 percent, to $147.35 and General Dynamics slipped 83
cents to $221.91.
KLA-Tencor, which makes equipment used in manufacturing semiconductors, said
it will buy equipment maker for electronics manufacturer Orbotech. The deal
values Orbotech at $38.86 a share in cash and stock, or $1.88 billion. Orbotech
added $4.17, or 7 percent, to $64.07 and KLA-Tencor skidded $3.70, or 3.1
percent, to $116.92.
TRADE WORRIES: Finance ministers and central bankers from the Group of 20
industrial and developing nations are meeting in Buenos Aires Monday and
Tuesday as investors worry about increased tensions surrounding international
trade. Earlier this month President Donald Trump ordered tariffs on imported
steel and aluminum. The European Union, for example, has already published a
list of American products it plans to tax if it is not exempted from the
tariffs announced by Trump.
BONDS: Bond prices edged lower. The yield on the 10-year Treasury note rose
to 2.86 percent from 2.85 percent.
ENERGY: Benchmark U.S. crude fell 23 cents to $62.11 a barrel in New York.
Brent crude, used to price international oils, lost 11 cents to $66.10 per
barrel in London.
ASIA: Tokyo's Nikkei 225 fell 0.9 percent and Hong Kong's Hang Seng edged up
less than 0.1 percent. Seoul's Kospi lost 0.8 percent.
CURRENCIES: The dollar edged up to 106.12 yen from 106.10 yen. The euro rose
to $1.2320 from $1.2284.
AP Markets Writer Marley Jay can be reached at
http://twitter.com/MarleyJayAP . His work can be found at