U.S. stocks slip again as tech companies slump
NEW YORK (AP) – Technology companies suffered another day of sharp losses Thursday and emerging markets slid on trade fears, although the broader U.S. market didn’t fare as badly.
Chipmakers sank after an executive from KLA-Tencor said business in the fourth quarter looks weaker than the company expected. Apple also fell, and social media companies continued to sink after Congressional hearings weighed on the stocks the day before.
“They have a target on their back,” said Karyn Cavanaugh, senior markets strategist at Voya Investment Management.
The S&P 500 index shed 10.55 points, or 0.4 percent, to 2,878.05. The Nasdaq composite fell 72.45 points, or 0.9 percent, to 7,922.73. The Russell 2000 index of smaller-company stocks declined 13.18 points, or 0.8 percent, to 1,714.47.
Industrial companies and high-dividend stocks rose, which limited the market’s losses. The Dow Jones Industrial Average rose 20.88 points, or 0.1 percent, to 25,995.87 as Boeing, 3M and United Technologies headed higher.
Apple fell 1.7 percent to $222.10 and KLA-Tencor lost 9.7 percent to $107.28. Facebook, Twitter and Alphabet, Google’s parent company, all fell again.
The Nasdaq, which has a high concentration of technology companies, is down 2.3 percent this week. But for the second day in a row, big losses for technology companies and for Amazon, the second-largest U.S. company, were partly canceled out by gains elsewhere.
Cavanaugh, of Voya Investment Management, said investors are still optimistic about the U.S. economy, which has helped other stocks.
“They know the underlying fundamentals are good,” she said. “Company earnings are not turning tail (and running away) because of the trade wars and all of the political drama.”
Technology companies outperformed the broader S&P 500 in each of the past four years and they are doing it again this year.