Stocks move broadly lower, threatening S&P 500 win streak
NEW YORK (AP) — U.S. stocks moved broadly lower in early trading Tuesday on Wall Street, putting the S&P 500 index at risk of ending an eight-day winning streak.
Banks and industrial companies led the losses. General Electric fell 3.2% and Citigroup fell 1.2%. Pentair plunged 12.4% after slashing its forecast.
Utilities and a hodgepodge of media companies were the only companies to eke out some gains. In another sign that investors were moving money into safer holdings, bond prices rose. The yield on the benchmark 10-year Treasury fell to 2.49%.
The early drop in stocks comes on the heels of The International Monetary Fund's dour forecast for global economic growth. It now expects 3.3% global growth in 2019, matching the weakest year since 2009. The U.S. fares particularly poorly, with growth now expected at 2.3%, down from 2.9% in 2018.
The IMF report landed in a busy week for investors. The U.S. Federal Reserve will release minutes from its latest policy meeting on Wednesday and The European Central Bank will also meet Wednesday.
The latest round of corporate earnings reports will kick off on Wednesday with Delta Air Lines. Several banks, including JPMorgan Chase, will release their first-quarter results on Friday. Analysts expect earnings for the S&P 500 to decline for the first time in almost three years.
KEEPING SCORE: The S&P 500 fell 0.5% as of 11:26 a.m. The Dow Jones Industrial Average fell 171 points, or 0.7% to 26,170 points, and the Nasdaq composite fell 0.3%.
TRADE TROUBLES: European markets gave up early gains and turned broadly lower after the U.S. threatened to impose $11.2 billion of tariffs on European products, including cheese, wine and helicopters. The move would escalate a global trade war at the same time the U.S. is trying to resolve a trade dispute with China.
The threat from President Donald Trump could make investors even more concerned about trade disputes hurting an already slowing global economy. The latest tariff threat would punish the European Union for subsidizing plane maker Airbus, which competes with U.S.-based Boeing.
The spat between the U.S. and China has already made a list of goods more expensive for consumers and is weighing on an already slowing Chinese economy. Negotiators met again last week and both sides have said they are making progress toward some kind of resolution.
SOAKED: Pentair plunged 14.5% after the maker of pool and other aquatic products slashed its profit forecast for the year. Cold and wet weather weighed down sales in the first quarter for the company's pool equipment, which includes filters and pumps. It also sells equipment used for wells and water treatment facilities.
CLIPPED WINGS: American Airlines fell 3% after the airline cut a key revenue measure because of grounded flights following Boeing's 737 Max troubles.
Regulators grounded Boeing's 737 Max jets following two deadly international crashes. That included 24 planes in American Airlines' fleet.
The airline also cited the lingering impact from a government shutdown for the lower revenue estimate.
DEAL ME OUT: Wynn Resorts fell 3.7% after the casino operator pulled out of a potential buyout of Australia's Crown Resorts. The company cited the "premature disclosure of preliminary discussions" as the reason.
The move would have given Wynn a wider global reach.
Late Monday, Crown Resorts told its investors that Wynn was offering about $7.1 billion in cash-and-stock deal.