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BUSINESS Friday 11 august 2017
A25

Tech companies lead worst day for US stock market since May

By ALEX VEIGA of how much volatility in-
AP Business Writer vestors expect in stocks, up
Brewing tensions between 44.4 percent. That’s the big-
the U.S. and North Korea gest increase since May.
put investors in a selling The market jitters gave in-
mood again Thursday, vestors an opportunity to
dragging U.S. stocks lower pocket some of their re-
for the third day in a row. cent gains following a string
The latest sell-off was the of record highs fueled by
most severe yet, amount- strong corporate earnings.
ing to the biggest single- “There’s not a fundamen-
day drop for the stock mar- tal reason why what we’re
ket in nearly three months. seeing out of North Korea
Technology companies, right now should affect
which have been the big- stock market prices, but it’s
gest gainers this year as the being used as the reason to
market hit a succession of sell off right now because
record highs, led the broad we’ve been looking for it
slide. Banks and depart- for so long,” Schiegoleit
ment store shares also were said. “This really is a profit-
among the big decliners. taking sell-off. I don’t see it
Utilities eked out a small as a fear-driven sell-off.”
gain. Specialist Michael O’Mara, left, and trader Gregory Rowe work on the floor of the New York Stock Heading into Thursday,
“The market has been look- Exchange. Brewing tensions between the U.S. and North Korea put investors in a selling mood some 89 percent of the
ing for an excuse to sell off again Thursday, dragging U.S. stocks lower for the third day in a row. companies in the S&P 500
and North Korea and the (AP Photo/Richard Drew) had reported quarterly re-
president gave the mar- or 0.9 percent, to 21,844.01, points, or 1.7 percent, to North Korea revealed a sults. Of those, 52 percent
ket that excuse,” said Da- just shy of its low point for 1,372.54. All the indexes are detailed plan to launch delivered earnings and
vid Schiegoleit, managing the day. down for the week. a salvo of ballistic missiles revenue that beat finan-
director at the U.S. Bank The tech-heavy Nasdaq Bond prices rose. The yield toward the U.S. Pacific ter- cial analysts’ forecasts,
Private Client Wealth Man- composite bore the brunt on the 10-year Treasury ritory of Guam, a major mili- according to S&P Global
agement. “As long as it of the sell-off, losing 135.46 note slipped to 2.20 per- tary hub and home to U.S. Market Intelligence. Tech-
doesn’t go beyond just a points, or 2.1 percent, to cent from 2.25 percent late bombers. Later, speaking nology stocks, the biggest
war of words, this is going 6,216.87. May 17 was the Wednesday. Wall Street to reporters, President Don- gainers this year, led Thurs-
to be short-lived.” last time the three indexes got off to a downbeat ald Trump demanded that day’s market slide. Nvidia
The Standard & Poor’s 500 had a bigger single-day start early Thursday as ten- North Korea “get their act fell $7.37, or 4.3 percent, to
index dropped 35.81 points, decline. sions between the U.S. and together” or face extraor- $164.74, while Advanced
or 1.4 percent, to 2,438.21. Smaller-company stocks North Korea continued to dinary trouble. Micro Devices gave up 71
The Dow Jones industrial also fell sharply. The Russell escalate, rattling markets Unease over the situation cents, or 5.5 percent, to
average slid 204.69 points, 2000 index gave up 24.40 overseas. Early in the day, pushed the VIX, a measure $12.12.q

Blue Apron revenue beats forecast, but hurt by plant delays

The company had said by FactSet had expected ing expenses came to
last week that it was clos- revenue of about $525.1 $34.5 million in the second
ing its facility in Jersey City, million, when combining quarter, down sharply from
New Jersey, and about their estimates for the third the $60.6 million of the first
470 workers might lose their and fourth quarters. quarter.
jobs if they didn’t transfer to Blue Apron, which went Blue Apron Holdings Inc.
a new plant in Linden, New public in June, reported lost $31.6 million, or 47 cents
Jersey. a 23 percent increase in per share, in the quarter. A
Chief Financial Officer Brad customers in the second year earlier the New York-
Dickerson said Thursday quarter from the prior-year based company earned
there have been “unex- period, but a 9 percent $5.5 million, or breakeven
pected complexities and drop from the first quarter per share. Wall Street fore-
costs” at the Linden plant due to a planned reduc- cast a loss of 27 cents per
in the past month as Blue tion in marketing. Market- share.q
Apron transfers products
This photo shows an example of a home-delivered meal from there.
Blue Apron. Blue Apron Holdings, Inc. reported earnings, Thurs- Dickerson said the issues
day, Aug. 10, 2017. are affecting labor costs
(AP Photo/Matthew Mead) and revenue outlook part-
NEW YORK (AP) — Blue Shares of Blue Apron, which ly because delays in new
Apron posted strong rev- was providing its first earn- product offerings are hurt-
enue growth in its second ings report since becom- ing Blue Apron’s ability to
quarter, but the meal-kit ing a public company, attract new customers.
seller says it’s having unex- tumbled more than 17 per- The company foresees rev-
pected delays at a new cent to $5.15 in afternoon enue for the second half of
plant and it gave a weak trading on Thursday. That’s the year in a range of $380
revenue forecast for the nearly half its initial public million to $400 million, Dick-
second half of the year. offering price of $10. erson said. Analysts polled