Dow plummets in afternoon trading and closes down more than 1,000 points

Trader Robert Charmak, left, works on the floor of the New York Stock Exchange, Thursday, Feb. 8, 2018. U.S. stocks are lower Thursday morning as losses from the previous day continue. (AP Photo/Richard Drew)

Stocks in world indexes fell again on Thursday, with major U.S. indexes dropping more than 3 percent in late afternoon trade after U.S. bond yields earlier crept back up towards four-year highs.

Dow Jones Industrials plunged 1,000 points, bringing the index down 10 percent from the record it reached two weeks ago. The Dow closed down 1,032 points down, at 23,860.

The tumult started last Friday as investors worried about signs of rising inflation.

The market fell steadily as the day wore on and is on track for its fifth loss in the last six days. Technology companies, the leading sector over the past year, and banks fell the most.

Trader Robert Charmak, left, works on the floor of the New York Stock Exchange, Thursday, Feb. 8, 2018. U.S. stocks are lower Thursday in a tumultuous streak that started last Friday

The sell off started lat Friday when the market was over

Thursday marked another day of sharp swings in recent sessions including the S&P 500’s biggest drop in more than six years that pulled equities away from record highs.

‘The dust hasn’t settled yet, and I think both buyers and sellers are trying to figure out what this market really wants to do,’ said Jonathan Corpina, senior managing partner for Meridian Equity Partners in New York.

‘I would think that this continues to happen for the next few trading sessions for everything to kind of get flushed out.’

The losses were broad. Four stocks fell for every one that rose on the New York Stock Exchange, and 10 out of the 11 industry sectors in the S&P 500 index were down.

Bond prices rose, sending yields slightly lower. The yield on the 10-year Treasury note fell to 2.82 percent from 2.84 percent.

High-dividend stocks including phone companies fell. Those stocks are often seen as substitutes for bonds because they tend not to fluctuate that much in price and provide steady income.

Those stocks fall out of favor when bond yields rise, as they have been for the past few months, and many expect the trend to continue. The yield on the 10-year note was as low as 2.04 percent as recently as September.

The market didn’t get much help Thursday from company earnings reports, several of which disappointed investors. While US companies mostly did well at the end of 2018, a number of them had a weak finish to the year.

Hanesbrands, which makes underwear, T-shirts and socks, reported a smaller profit than investors expected, and its forecast for the current year didn’t live up to analysts’ estimates either.

The company also said it will pay $400million to buy Australian retailer Bras N Things.
The stock dropped $2.39, or 10.9 percent, to $19.57.

IRobot, which makes Roomba vacuums, plummeted 32 percent after projected a smaller annual profit than Wall Street was expecting.

The stock dropped $28.24 to $59.80.

Twitter had a banner day, soaring 12 percent after turning in a profit for the first time. Its fourth-quarter revenue was also better than expected.

The stock rose $3.27 to $30.18.

Online delivery company GrubHub soared after it announced a partnership with Yum Brands, the parent of Taco Bell and KFC.

GrubHub will provide the delivery people and technology to let people order food from those restaurants. GrubHub jumped $19.13, or 27.4 percent, to $89.04.

After a sharp loss Wednesday, benchmark U.S. crude lost 64 cents, or 1 percent, to $61.15 a barrel in New York.

Brent crude, the international standard for oil prices, gave up 70 cents, or 1.1 percent, to $64.81 per barrel in London.

Stocks in Europe declined and bond yields increased after the Bank of England said could raise interest rates in coming months because of the strong global economy.

That also sent the pound higher. Britain’s FTSE 100 fell 1.5 percent and the French CAC 40 lost 2 percent. Germany’s DAX declined 2.6 percent.

Bond prices wobbled and turned higher. The yield on the 10-year Treasury note rose to 2.83 percent from 2.84 percent.

Rising yields have made bonds more appealing to some investors compared to stocks.

The yield on the 10-year note was as low as 2.04 percent as recently as September.

In other commodities trading, wholesale gasoline remained at $1.77 a gallon.

Heating oil lost 1 cent to $1.92 a gallon. Natural gas gave up 1 cent to $2.70 per 1,000 cubic feet.

In Tokyo the Nikkei 225 index rose 1.1 percent. South Korea’s Kospi gained 0.5 percent and the Hang Seng of Hong Kong rose 0.4 percent.

Provided by the Associated Press and Reuters and published by The Daily Mail ~ February 8, 2018.

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