U.S. stocks turned broadly lower in midday trading Thursday as investors became more cautious following a record-setting day for major indexes.
The coronavirus outbreak that originated in China remains a lingering concern as more companies say they'll be affected. The world’s biggest shipper, A.P. Moller Maersk, expects a profit hit in 2020. Air France also expects earnings to suffer and Australia’s Qantas is slashing flights to Asia.
Technology and health care companies led the losses. Microsoft slipped 2.3% and UnitedHealth Group fell 1.8%.
Bond prices rose sharply as investors sought safety, sending yields lower. The yield on the 10-year Treasury slipped to 1.51% from 1.57%.
Energy companies held up better than most of the market as crude oil prices rose 1%. Real estate companies also held up well.
E-Trade soared after agreeing to be acquired by Morgan Stanley.
KEEPING SCORE: The S&P 500 index fell 0.9% as of 11:41 a.m. Eastern time. The Dow Jones Industrial Average fell 304 points, or 1%, to 29,051. Nasdaq fell 1.3%. The Russell 2000 index of smaller company stocks fell 0.6%.
OVERSEAS: Markets in Asia were mixed. The Shanghai benchmark jumped1.8% after China’s central bank cut interest rates to help ease credit for companies hurt by the virus outbreak. European markets mostly fell.
RICH CRUST: Domino's Pizza jumped 23.5% after the company delivered better-than-expected fourth-quarter profit and surprisingly good sales. The company handily beat a key sales measure as it faces increasing competition from food delivery companies like DoorDash.
BIG DEAL: E-Trade surged 24.7% after Morgan Stanley said it will buy the online brokerage firm for $13 billion, one of the biggest deals on Wall Street since the financial crisis. Morgan Stanley fell 3.3%. The deal comes less than a year after a vicious fight for customers resulted in discount brokers like E-Trade slashing or eliminating fees. Rival Charles Schwab is in the process of buying TD Ameritrade.
EARNINGS: Investors continued digesting a steady flow of corporate earnings. Zillow Group jumped 19.9% and Avis Budget Group also soared 19.2%after reporting solid financial results. Online postage provider Stamps.com surged 56.5% after blowing away analysts’ forecasts. ViacomCBS plunged 16.9% and Boston Beer slid 6.6% after reporting disappointing results.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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