Home » NEWS » Banking & Finance » US stocks skid on weak health care results; Europe slumps

US stocks skid on weak health care results; Europe slumps

U.S. stocks are slipping Friday morning, while markets in Europe and Asia take hefty losses. Health care companies are falling after some weak first-quarter reports and technology companies continue to trade lower after a late plunge a day earlier.

KEEPING SCORE: The Dow Jones industrial average dropped 104 points, or 0.6 percent, to 17,726 as of 10:12 a.m. Eastern time. The Standard & Poor’s 500 index fell 11 points, or 0.5 percent, to 2,064. The Nasdaq composite index lost 23 points, or 0.5 percent, to 4,782. The Dow and the S&P 500 are a bit higher for the month but the Nasdaq is down almost 2 percent.

TAKEN ILL: Health care companies fell after a bout of weak earnings reports. Biotech drugmaker Gilead Sciences said its results were hurt by big discounts and rebates on its costly hepatitis C medicines, and its stock lost $6.56, or 6.8 percent, to $90.45.

Health insurer Molina Healthcare slashed its full-year guidance because of higher medical care costs in Ohio and Texas, expenses related to recent acquisitions, and pharmacy costs, especially in Puerto Rico. It gave up $10.76, or 16.8 percent, to $53.46.

Molecular diagnostics company Cepheid shed $5.55, or 15.7 percent, to $29.85 after its report.

CONSUMERS CAREFUL: Consumer spending edged 0.1 percent higher in March. Consumers spent more on clothing and less on long-lasting items like cars. Consumer spending has been weak this year, but employers keep hiring.

AMAZON STRONG: E-commerce giant Amazon rose $57.80, or 9.6 percent, to $659.80. The company said revenue jumped 28 percent in the first quarter, and the company turned a far bigger profit than analysts expected. Cloud-based Amazon Web Services performed well.

OVERSEAS: Stocks in Europe fell. Reports showed the economy of the eurozone rose a strong 0.6 percent in the first quarter, but inflation slipped in April. France’s CAC 40 fell 2.7 percent and Germany’s DAX lost 2.4 percent. Britain’s FTSE 100 shed 1.1 percent. Hong Kong’s Hang Seng index fell 1.5 percent and Seoul’s Kospi gave up 0.3 percent. Japanese markets were closed for a holiday.

BOOKED: Online travel company Expedia reported a bigger adjusted profit and greater sales than expected. Its stock added $8.68, or 8.1 percent, to $115.67.

CHANNEL CHANGER: Digital TV listing company Rovi will buy digital video recording company TiVo for about $1.1 billion in cash and stock. TiVo stock gained 56 cents, or 5.9 percent, to $9.98 and Rovi rose 65 cents, or 3.8 percent, to $18.01.

NO DEAL: Groupon sank 57 cents, or 12.9 percent, to $3.86. The daily deals site reported strong results but left its guidance unchanged.

LINKED: Online professional network LinkedIn’s results were stronger than expected and so was its second-quarter forecast. LinkedIn raised its expectations for the year and its stock advanced $6.01, or 4.9 percent, to $129.02.

DRINK UP: Monster Beverage gained $15.97, or 12.5 percent, to $143.81. The energy drink company’s results surpassed analyst estimates. Monster Beverage also said it will buy back $2 billion of its own stock.

ENERGY: Benchmark U.S. crude rose 30 cents to $46.34 per barrel in New York. Brent crude, used to price international oils, edged up 9 cents to $47.86 a barrel in London.

BONDS, CURRENCY: Bond prices slipped. The yield on the 10-year U.S. Treasury note rose to 1.86 percent from 1.83 percent a day earlier. The dollar fell to 107.34 yen from 108.09 yen. The euro rose to $1.1442 from $1.1351.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Associated Press

Leave a Reply

Your email address will not be published. Required fields are marked *

*