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REFILE-US STOCKS-Wall Street drops on tech slide, Washington turmoil

Published 09/27/2019, 12:49 AM
REFILE-US STOCKS-Wall Street drops on tech slide, Washington turmoil
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(Corrects headline to say "tech", not "techs")
* Trump sought foreign meddling in 2020 election -Report
* Beyond Meat shares surge on McDonald's tie-up
* Facebook dips on report of antitrust investigation
* Indexes down: Dow 0.51%, S&P 0.60%, Nasdaq 0.94%

By Ambar Warrick and Medha Singh
Sept 26 (Reuters) - Wall Street's main indexes extended
declines on Thursday after a report that the United States was
unlikely to extend a temporary waiver over Huawei's
blacklisting, adding to worries related to an inquiry into the
impeachment of President Donald Trump.
Technology stocks .SPLRCT dropped 0.48% after Bloomberg's
report on China's Huawei Technologies Co Ltd. The Philadelphia
semiconductor index .SOX , which includes a number of companies
that supply to the Chinese telecom equipment maker, fell 0.73%.
A whistleblower report released earlier in the day alleged
Trump used his office to solicit interference in the 2020
presidential election from a foreign country. The report is seen
as central to the impeachment inquiry. "I don't see this necessarily as a market issue unless you
consider the fact that if the Chinese see that Trump's strength
in office is somewhat threatened, then perhaps they will be more
emboldened to try to postpone any trade negotiations until after
elections," said Randy Frederick, vice president of trading and
derivatives for Charles Schwab in Austin, Texas.
The S&P energy sector .SPNY , down 1.75%, was the worst
performer among the 11 major S&P sectors, tracking lower oil
prices after a rebound in Saudi Arabian supply. O/R
The defensive consumer staples .SPLRCS , utilities
.SPLRCU and real estate .SPLRCR were the only gainers.
The three sectors are also the best performing S&P indexes
this quarter as investors switched to defensive plays in the
face of escalating Sino-U.S. trade tensions and mixed data that
has fanned global growth concerns.
Facebook Inc FB.O slipped 2.4% as a person familiar with
the matter told Reuters that the U.S. Justice Department will
open an antitrust investigation of the social media company.
Losses in the social network's stock pulled the
communication services .SPLRCS sector down 0.38%.
At 11:31 a.m. ET, the Dow Jones Industrial Average .DJI
was down 136.87 points, or 0.51%, at 26,833.84 and the S&P 500
.SPX was down 17.84 points, or 0.60%, at 2,967.03. The Nasdaq
Composite .IXIC was down 76.14 points, or 0.94%, at 8,001.25.
The benchmark S&P 500 index came within spitting distance of
its July all-time high last week, but has since widened the gap
on conflicting trade headlines and political uncertainty.
Leisure cruise operator Carnival Corp CCL.N dropped 8.1%
and was set for its worst day in six months after it cut its
full-year profit forecast for the third time on the back of
higher fuel prices. Shares in one of this year's market success stories, Beyond
Meat BYND.O , jumped 8.1% as it added McDonald's Corp MCD.N
to a growing list of clients for its plant-based patties.
Declining issues outnumbered advancers for a 1.69-to-1 ratio
on the NYSE and for a 2.48-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and five new
lows, while the Nasdaq recorded 21 new highs and 70 new lows.

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