Dow dives 2.2%, moves into the red for 2018
- Author: Eleanor Harrison Nov 24, 2018,
Nov 24, 2018, 4:37
The Dow fell 504 points, or 2 percent, to 24,909.
Faced with these challenges, investors have lately turned to safer bets such as utilities, real estate companies, and makers of household goods. He will continue to remain chairman of French carmaker Renault, whose shares plunged after Ghosn's arrest and have yet to fully recover. Investors are anxious about the United States economic outlook on concerns over Apple's future earnings.
Consumer discretionary and technology lead gains in early trade.
Latest economic data showed new orders for key USA -made capital goods were unexpectedly unchanged in October and shipments rebounded modestly, which could temper expectations of an acceleration in business spending on equipment early in the fourth quarter.
Among tech stocks, Facebook sank 5.5 percent to $131.85, Microsoft fell to $104.44 and chipmaker Nvidia dropped another 11 percent to $146.38.
Tuesday's slide compounded Monday's losses on the Dow, resulting in a two-day losing streak of about 950 points, or 4 percent. Nissan said Ghosn and another senior executive, Greg Kelly, were accused of offenses involving millions of dollars that were discovered during an investigation set off by a whistleblower.
The frenzied selling followed big losses Monday, when the Dow shed almost 400 points. Caterpillar fell 3.1 percent to $125.98 and Nike lost 3 percent to $72.52. Microsoft picked up 1.4 per cent to $103.11, but Apple lost 0.1 per cent to $176.89. The benchmark index is 9.9 percent below its September peak.
ENERGY: Oil prices rebounded Wednesday as benchmark USA crude gained 2.3 per cent to $54.66 a barrel in NY. Brent crude, the worldwide standard, lost 2 cents to $62.58.
The S&P 500 index fell 6 points, or 0.2 percent, to 2,729.
The pressure on technology stocks appeared to have eased on Wednesday, with the other members of the FAANG group - Amazon.com Inc, Netflix Inc and Alphabet Inc and Facebook Inc - gaining between 1.3% and 2.3%. Boeing was the biggest drag on the Dow Jones Industrial Average with a loss of 4.5 percent. The Mercury News of San Jose reported Saturday that the company said it had an outage at 6:45 a.m. on November 8 in Concow. Authorities say 76 people have been confirmed dead in the Camp Fire.
Industrial companies are also dropping as the downward momentum in stocks builds after steep losses Monday. Silver inched up 0.1 percent to $14.40 an ounce. Copper rose 1 per cent to $2.79 a pound. Crude oil prices are up about 2 per cent after they sank to a one-year low a day earlier.
CURRENCIES: The dollar rose to 112.98 yen from 112.40 yen. The euro strengthened to $1.1410 from $1.1403.