U.S. equity markets were under pressure Friday with the Dow Jones Industrial Average on track for a fifth day of losses.
|I:DJI||DOW JONES AVERAGES||33442.14||-381.31||-1.13%|
|I:COMP||NASDAQ COMPOSITE INDEX||14085.669676||-75.68||-0.53%|
The Dow fell 405 points, or 1.2% while the S&P 500 and the Nasdaq Composite declined 0.91% and 0.46%, respectively.
The choppy session comes as the yield on the 10-year note slipped below 1.5% and was contending with its lowest levels since early March.
|SQ||SQUARE INC COM||236.74||+0.69||+0.29%|
Growth stocks including Tesla Inc. and Square Inc., which typically benefit from lower interest rates, were not seeing their usual boost.
|BAC||BANK OF AMERICA CORP.||39.04||-0.79||-1.98%|
|JPM||JPMORGAN CHASE & CO.||149.46||-2.25||-1.48%|
At the same time, bank stocks like Bank of America Corp. and JPMorgan Chase & Co were weaker as lower interest rates reduce their net interest margins.
|MU||MICRON TECHNOLOGY, INC.||78.95||-1.69||-2.10%|
Elsewhere, chipmakers including Nvidia Corp., Micron Technology Inc. and Intel Corp. were mixed after a bipartisan group of U.S. senators proposed a 25% tax credit for investments in semiconductor manufacturing. U.S. chip production has fallen sharply in recent years to 12% of global output, down from 37% in 1990.
|CAI||CAI INTERNATIONAL INC||55.76||+17.57||+46.03%|
In deals, container leasing and management company CAI International Inc. has agreed to be taken over by Japan’s Mitsubishi HC Capital Inc. for $1.1 billion, or $56 per share. The price represents a 47% premium to where shares closed on Thursday.
Online marketplace eBay Inc. and Norway’s Adevinta were granted regulatory approval for the approximately $13 billion deal for the former’s classified ads business. EBay will receive $2.5 billion in cash and 540 million Adevinta shares.
In earnings, Adobe Inc. beat on both the top and bottom line as quarterly profit rose 23% year over year. The software maker forecast earnings for the current quarter that were ahead of expectations.
|SWBI||SMITH & WESSON BRANDS||21.93||+2.01||+10.09%|
Gun-maker Smith & Wesson Brands Inc. reported sales soared 67% from a year ago to a record of almost $323 million. The company raised its quarterly dividend by 60% to 8 cents per share and announced a new $50 million share buyback program.
In commodities, West Texas Intermediate crude oil slid 26 cents to $70.78 a barrel and gold edged up $1.20 to $1,776 an ounce.
Overseas markets were under pressure.
Britain’s FTSE 100 paced the decline in Europe, trading down 1.66%, while Germany’s DAX 30 and France’s CAC 40 fell 1.61% and 1.29%, respectively.
In Asia, Japan’s Nikkei 225 lost 0.19% and China’s Shanghai Composite slipped 0.01%. Hong Kong’s Hang Seng index outperformed, climbing 0.85%.
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