Wall Street ends lower as Turkey woes hit banks
- Author: Wendy Palmer Aug 13, 2018,
Aug 13, 2018, 2:17
The S&P technology index fell 1 percent, with Intel down 2.8 percent after Goldman Sachs downgraded the stock to "sell".
The VIX Volatility Index was higher at 13.20 for a gain of 1.93 points or 17.13%.
"We seem to be able to put trade worries on the back burner and focus on second-quarter results, which have been significantly positive", said Art Hogan, chief market strategist at B. Riley FBR in NY.
Microchip Technology shares fell 11.6 percent after disappointing second-quarter revenue forecast.
The producer's price index remained unchanged in July, while economists polled by Reuters expected a gain of 0.2 percent. You worry about the effects on Europe.
At 2:47 p.m. (1847 GMT), the Dow Jones Industrial Average was down 270.25 points, or 1.06 percent, to 25,238.98, the S&P 500 had lost 25.21 points, or 0.88 percent, to 2,828.37 and the Nasdaq Composite had dropped 65.17 points, or 0.83 percent, to 7,826.61.
Rite Aid (RAD.N) fell 10.6 percent and was the most actively traded stock after the drug store chain and US grocer Albertsons Cos ABS.N agreed to terminate their merger agreement. Shares of Apple rose 0.8 per cent, while those of Amazon were up 0.6 per cent.
For the week, the Dow fell 0.6 per cent and the S&P 500 dipped 0.3 per cent.
Shares in leading U.S. banks also plunged significantly with Bank of America, Goldman Sachs, Morgan Stanley, and J.P. Morgan Chase all falling over one percent.
Shares in trade-sensitive companies fell.
Economic data showing U.S. consumer inflation rose steadily in July, supporting the case for another interest rate hike next month by the Federal Reserve. The Nasdaq Composite rose 0.2 percent as Amazon shares hit an all-time high while Apple rose almost 1 percent.
Advancing issues outnumbered decliners by a 1.80-to-1 ratio on the NYSE. Beijing announced Wednesday it would counter the most recent round of US tariffs with its own. Excluding the energy sector, the earnings growth estimate declines to 20.4 per cent.