(Reuters) – U.S. shares slumped on Friday as weak information from China and Europe stoked fears of a world financial slowdown, whereas Johnson & Johnson slid after Reuters reported the corporate knew for many years that asbestos lurked in its Baby Powder.
Investors nervous about world growth after China reported weak month-to-month retail gross sales growth and industrial output numbers, as disappointing financial information was launched from Euro zone.
The Johnson & Johnson (JNJ.N) report, which the corporate has disputed, despatched its shares tumbling 10.2 p.c in heavy quantity, making it the largest drag on the S&P 500 and the Dow Industrials.
The pharma main additionally pulled down the S&P healthcare index .SPXHC three.6 p.c, making it the largest decliner among the many 11 main sectors. The know-how index .SPLRCT, which incorporates numerous firms with world operations, particularly China, dropped 2.four p.c.
Strong U.S. retail gross sales information appeared to have little impression on markets, with the S&P retail sector .SPXRT falling 2 p.c.
“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,” mentioned Phil Blancato, chief government of Ladenburg Thalmann Asset Management in New York.
But Blancato mentioned he doesn’t purchase the thesis that slowing growth exterior of the United States will damage the U.S. financial system and that the decline was a shopping for alternative.
At 2:57 p.m. EST (1947 GMT), the Dow Jones Industrial Average .DJI was down 472.77 factors, or 1.92 p.c, to 24,124.61, the S&P 500 .SPX misplaced 47.63 factors, or 1.80 p.c, to 2,602.91 and the Nasdaq Composite .IXIC dropped 140.11 factors, or 1.98 p.c, to six,930.22.
The market has struggled this week with uneven buying and selling and has failed to carry on to opening ranges in magnitude or route on considerations starting from U.S.-China commerce talks, rates of interest and a flattening U.S. Treasury yield curve to uncertainty over the form of Brexit.
But buyers appeared to shrug off Beijing’s announcement it will droop further tariffs on U.S.-made automobiles and auto elements for 3 months beginning Jan. 1.
The S&P healthcare sector was final down three.5 p.c adopted by a 2.7 p.c decline within the power index .SPNY and know-how shares, which have been down 2.four p.c.
Costco Wholesale Corp (COST.O) dropped 9 p.c after reporting a fall in quarterly gross margin and was the largest laggard in shopper staples.
Walgreens Boots Alliance Inc (WBA.O) was one other healthcare inventory that declined, down four.5 p.c, after Goldman Sachs downgraded the pharmacy proprietor’s shares.
Apple Inc (AAPL.O) fell 2.eight p.c, with some reviews citing a prime analyst slashing an iPhone gross sales estimate for the decline.
Declining points outnumbered advancing ones on the NYSE by a three.90-to-1 ratio; on Nasdaq, a 2.96-to-1 ratio favored decliners.
The S&P 500 posted 9 new 52-week highs and 84 new lows; the Nasdaq Composite recorded six new highs and 367 new lows.
Additional reporting by Chuck Mikolajczak in New York, Medha Singh in Bengaluru; Editing by Sriraj Kalluvila and Jonathan Oatis