Stocks slide as Dow heads for fifth day of losses

U.S. equity markets were under pressure Friday with the Dow Jones Industrial Average on track for a fifth day of losses. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33442.14 -381.31 -1.13%
SP500 S&P 500 4186.11 -35.75 -0.85%
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.

Ticker Security Last Change Change %
TSLA TESLA, INC. 618.12 +1.52 +0.25%
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. 

Ticker Security Last Change Change %
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. 

Ticker Security Last Change Change %
NVDA NVIDIA CORP. 759.26 +12.97 +1.74%
MU MICRON TECHNOLOGY, INC. 78.95 -1.69 -2.10%
INTC INTEL CORP. 55.94 -1.24 -2.17%

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. 

Ticker Security Last Change Change %
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. 

Ticker Security Last Change Change %
EBAY EBAY, INC. 64.39 -0.94 -1.44%

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.  

Ticker Security Last Change Change %
ABDE n.a. n.a. n.a. n.a.

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. 

Ticker Security Last Change Change %
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. 

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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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