U.S. and European stocks were moderately lower in early trading Friday after Deutsche Bank said it wouldn’t settle with the Department of Justice over its role in the 2008 financial crisis.
KEEPING SCORE: The Dow Jones industrial average lost 83 points, or 0.5 percent, to 18,129 as of 10:10 a.m. Eastern. The Standard & Poor’s 500 index lost 10 points, or 0.5 percent, to 2,137 and the Nasdaq composite lost 16 points, or 0.3 percent, to 5,234.
DEUTSCHE BANK: The U.S.-listed shares of Deutsche Bank, the German financial conglomerate, plunged $1.30, or 9 percent, to $13.46 after the bank said it did not intend to pay the $14 billion settlement that the Department of Justice had proposed. Federal regulators have been looking to settle with Deutsche Bank, as it has done with other major Wall Street firms, for its role in the mortgage bubble and financial crisis.
Other European banks fell as well. Royal Bank of Scotland Group fell 30 cents, or 6 percent, to $4.86.
EUROPE DRAGS: The news out of Deutsche Bank dragged European stocks broadly lower, with Germany’s DAX down 1.5 percent, France’s CAC-40 index down 1.1 percent and the U.K.’s FTSE 100 index down 0.3 percent.
TERMINALLY ILL: Pharmaceutical company Novavax plunged $6.93, or 83 percent, to $1.42 after the company said its experimental vaccine failed in late-stage clinical testing. Novavax has no active products on the market and this drug was their furthest in development.
IN THE CLOUD: Software company Oracle fell $1.25, or 3 percent, to $39.61 after the company’s quarterly results did not meet analysts’ expectations.
OIL PRICES: Benchmark U.S. crude lost 95 cents to $42.96 per barrel in New York. Brent crude, used to price international oils, fell 83 cents to $45.76 per barrel.
BONDS AND CURRENCIES: The yield on the 10-year Treasury note was mostly unchanged at 1.69 percent. The euro fell to $1.1168 from $1.246 and the dollar slipped to 102.12 yen from 102.16 yen.
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