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Overnight Markets: Tech stocks drag Wall Street lower

Overnight Markets: Tech stocks drag Wall Street lower

Wall Street closed lower on Monday in a choppy session as technology stocks were pressured by lingering concerns over interest rates and corporate earnings.

The Dow Jones Industrial Average fell 89 points, or 0.35%, to 25,251, the S&P 500 lost 16 points, or 0.59%, to 2,751, and the Nasdaq Composite dropped 66 points, or 0.88%, to 7,431 after large-cap tech shares fell more than 1%.

Apple Inc. plunged 2.14%, Alphabet Inc. shed 1.62%, Microsoft Corp. was down 1.80% and Amazon.com lost 1.55%.

Losses were tied to jitters over a sudden rise in interest rates, as the yield on the 10-year Treasury note hit a seven-year high above 3.25% last week. That yield was hovering at 3.15% on Monday.

Geopolitical tensions were another worry for investors, starting with Saudi Arabia, which is locked in a diplomatic spat with the US a missing dissident journalist.

Investors are also parsing comments made in a “60 Minutes” interview on Sunday night, when Trump threatened a third round of tariffs on China.

US data showed retail sales in September inched higher by 0.1%, well below the 0.6% gain projected by analysts, although there was some good news in the details.

Bank of America declined 1.9% even as it reported a 35.1% jump in third-quarter earnings to $6.7 billion, a pre-tax record for the bank.

The earnings calendar this week includes Goldman Sachs, Procter & Gamble and Netflix.

Apple slumped 2.1% after Goldman Sachs’ analyst Rod Hall warned that slower demand in China for iPhones could hurt sales and jeopardize the company meeting Wall Street’s earnings expectations. 

Shares of Sears Holdings Corp. plunged nearly 24% after the iconic retailer filed early Monday for bankruptcy protection from creditors.

Shares of Dell Technologies added 0.5%, while VMware Inc. shares shed 2.5%. Billionaire investor Carl Icahn on Monday disclosed he had boosted his stake in shares that track Dell Technologies’ interest in VMware.

In Asia, shares rose modestly on Tuesday after a week of heavy losses, although increasing tensions between Saudi Arabia and the West fanned geopolitical concerns and capped gains.

In Japan, the Nikkei 225 advanced by 0.75%. South Korea's Kospi rose by 0.62%. In Australia, the ASX 200 traded higher by 0.54%.

In China, the Shanghai Composite Index added 0.70%, while Hong Kong’s Hang Seng Index  gained 0.71%


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