Global stocks slide following weak reports from China

Marley Jay, The Associated Press</span>
Published Friday, December 14, 2018 7:02AM EST
Last Updated Friday, December 14, 2018 10:23AM EST

NEW YORK -- Stocks are sagging Friday after weak economic data from China has investors worrying about the global economy again.

China's government said industrial output and retail sales both slowed in November.

In the U.S., technology and health care companies took some of the worst losses. Software maker Adobe, coffee chain Starbucks and wholesaler Costco all sank after issuing weak reports or forecasts.

KEEPING SCORE: The S&P 500 index lost 18 points, or 0.7 per cent, to 2,631 at 10 a.m. Eastern time. The Dow Jones Industrial Average fell 190 points, or 0.8 per cent, to 24,407.

The Nasdaq composite slid 63 points, or 0.9 per cent, to 7,006. The Russell 2000 index of smaller-company stocks, which has taken bigger losses than the rest of the market in recent months, was unchanged at 1,432.

December is typically the best month of the year for stocks and Wall Street usually looks forward to a "Santa Claus rally" that adds to the year's gains. This month, however, the S&P 500 is down almost 5 per cent. That followed a small gain in November and a steep 6.9 per cent drop in October.

SLOWING GROWTH: China's industrial output and retail sales kept growing in November, but the pace of growth slowed down. That could be another sign that China's trade dispute with the U.S. and tighter lending conditions are chilling its economy. For more than 20 years, China has been one of the biggest contributors to growth in the global economy, and when investors see signs the Chinese economy is weakening, they expect it will affect other countries like the U.S. that sell things to China.

China also announced a 90-day suspension of tariff increases on U.S. cars, trucks and auto imports. It's part of a cease-fire that the Chinese and U.S. governments announced earlier this month to give them time to work on other aspects of the trade dispute.

Among technology companies, Apple dipped 2.1 per cent to $167.32 and Cisco Systems fell 2.5 per cent to $46.32. Adobe skidded 5.1 per cent to $235.33 after its fourth-quarter profit disappointed investors and it also forecast lower-than-expected earnings in the current fiscal year.

In health care, Johnson & Johnson dropped 4 per cent to $141.98 and Pfizer lost 1.6 per cent to $43.85 while biotech drugmaker Amgen gave up 1.4 per cent to $194.71.

OVERSEAS: Germany's DAX declined 0.3 per cent and the CAC 40 in France declined 0.6 per cent. Britain's FTSE 100 fell 0.3 per cent.

Japan's Nikkei 225 index slid 2 per cent and the Kospi in South Korea lost 1.3 per cent. Hong Kong's Hang Seng was down 1.6 per cent.

CAFFEINE HEADACHE: Starbucks slipped 1.9 per cent to $65.67 after the company's forecasts fell short of analyst expectations. Wholesale club company Costco also dropped in early trading following its quarter report, as the stock lost 6.4 per cent to $212.10.

ENERGY: Benchmark U.S. crude fell 1.6 per cent to $51.73 a barrel in New York. Brent crude, used to price international oils, dropped 0.7 per cent to $61.03 a barrel in London.

BONDS: Bond prices were little changed. The yield on the 10-year Treasury note remained at 2.90 per cent.

CURRENCIES: The dollar rose to 113.63 yen from 113.60 yen. The euro fell to $1.1286 from $1.1367. The British pound slipped to $1.2550 from $1.2660.

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AP Markets Writer Marley Jay contributed.

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