NEW YORK (AP) — U.S. stocks turned broadly lower in midday trading Thursday as investorsbecame more cautious following a record-setting day for major indexes.
The virus outbreak originating in China remains a lingering concern as more companiessay 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 benchmarkjumped1.8% after China’s central bank cut interest rates to help ease credit for companies hurt by the virus outbreak. European marketsmostly 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 reportingsolid 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.
Companies Mentioned in This Article
15 REITS Analysts Can't Stop Recommending
There are more than 200 publicly-traded real-estate investment trusts (REITs) that you can buy through your brokerage account. Given the sheer number of REITs, it can be hard to identify which real-estate stocks are going to outperform the market.
Fortunately, Wall Street's brightest minds have already done this for us. Every year, analyst issue approximately 4,000 distinct recommendations for REITs. Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firm are giving "strong buy" and "buy" ratings to the same REIT.
This slide show lists the 15 REITs that have the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.
View the "15 REITS Analysts Can't Stop Recommending".