NEW YORK | US stocks slip as technology companies open lower
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NEW YORK | US stocks slip as technology companies open lower
NEW YORK — U.S. stocks are slightly lower Tuesday morning as technology companies including Facebook take losses, but energy companies are rising along with oil prices. Nike is sliding after it gave a major endorsement deal to former NFL quarterback Colin Kaepernick, known for his protests of police brutality and racial injustice.
Investors are looking ahead to Congressional hearings on social media and trade talks between the U.S. and Canada as trading resumes after the Labor Day holiday.
KEEPING SCORE: The S&P 500 index slid 5 points, or 0.2 percent, to 2,896 as of 10:20 a.m. Eastern time. The Dow Jones Industrial Average fell 61 points, or 0.2 percent, to 25,903. The Nasdaq composite gave up 26 points, or 0.3 percent, to 8,083. The Russell 2000 index lost 5 points, or 0.3 percent, to 1,735.
NO TECH SUPPORT: Microsoft lost 0.9 percent to $111.30 and Seagate Technology fell 8.2 percent to $49.17 as technology companies declined.
Executives from Facebook and Twitter are scheduled to testify before the Senate Intelligence Committee Wednesday about how the companies are dealing with efforts by Russia and other countries to influence social media platforms and interfere in U.S. elections.
Twitter CEO Jack Dorsey is also scheduled to testify before the House Energy and Commerce Committee, which wants to know how Twitter monitors and polices content. Without evidence, conservatives have accused Twitter and other tech companies of limiting their reach online.
Facebook slid 2.7 percent to $171.01 and Twitter fell 0.3 percent to $35.08.
UNLACED: Nike stock fell 2.3 percent to $80.30 after the company announced a new endorsement deal with former San Francisco 49ers quarterback Colin Kaepernick, who will be one of the faces of its 30th anniversary “Just Do It” campaign. Investors feared signs of a backlash from customers.
Two seasons ago Kaepernick began a wave of protests by NFL players, kneeling during the national anthem to protest police brutality and racial inequality. He hasn’t played in the NFL since the end of the 2016 season and is suing the league, saying owners conspired to keep him out of the game because of his protests of social injustice.
WPP WIPEOUT: Advertising company WPP fell 7.9 percent to $76.27 after it reported weak results from North America in the second quarter.
JD.COM CEO: Chinese e-commerce company JD.com slid 6 percent to $29.42 after founder and CEO Richard Liu was arrested in the U.S. late Friday. Liu was arrested in Minneapolis on suspicion of criminal sexual conduct and was released pending charges. JD.com said he has returned to China.
OIL DRILLING DEAL: Transocean agreed to buy offshore drilling contractor Ocean Rig UDW for $32.28 a share in cash and stock.
The companies valued at the deal at $2.7 billion including debt.
Ocean Rig jumped 13 percent to $30.61 and Transocean lost 4.9 percent to $11.52.
TRADE CONCERNS: Talks to keep Canada in a revised North American trade deal are scheduled to resume Wednesday as Washington and Ottawa try to break a deadlock over issues such as Canada’s dairy market and U.S. efforts to shield drug companies from generic competition.
The U.S. and Mexico announced a preliminary trade deal last week, and while the Trump administration has threatened to leave Canada out of a final deal, investors expect it to be included.
ENERGY: Oil prices rose as Tropical Storm Gordon rolled through the Gulf of Mexico, where it could disrupt oil drilling and production.
Benchmark U.S. crude rose 0.8 percent to $70.34 a barrel in New York. Brent Crude, used to price international oils, gained 0.7 percent to $78.68 a barrel in London.
BONDS: Bond prices dropped. The yield on the 10-year Treasury note rose to 2.90 percent from 2.85 percent.
OVERSEAS: France’s CAC 40 dropped 1.3 percent and Germany’s DAX shed 1.2 percent. In Britain, the FTSE 100 index lost 0.8 percent.
Japan’s benchmark Nikkei 225 lost 0.1 percent while the Kospi in South Korea gained 0.4 percent. Hong Kong’s Hang Seng added 0.9 percent.
CURRENCIES: The dollar rose to 111.46 yen from 111.01 yen. The euro fell to $1.1544 from $1.1597.
By MARLEY JAY, Associated Press
