Page 25 - ARUBA TODAY

BUSINESS Tuesday 21 May 2019
A25

Technology stocks push the market lower, extending losses

By DAMIAN J. TROISE Justice Department must
ALEX VEIGA also clear the deal.
Associated Press T-Mobile climbed 5.5% and
Technology companies Sprint surged 21.8%.
led a broad slide in stocks The deal would position the
Monday afternoon on Wall companies to deploy a 5G
Street, extending the mar- network that would cover
ket's losses into another 97% of the U.S. population
week. within three years of the
The U.S. decision to ban closing of the merger and
technology sales to China's 99% of Americans within six
Huawei hammered the years.
technology sector, partic- CHIPPED SALES PROSPECTS:
ularly chipmakers. About Chipmakers fell broadly as
one-third of Huawei's sup- the sector deals with the
pliers are American chip- fallout from the U.S. ban on
makers and investors are technology sales to Hua-
worried that the action wei.
against Huawei could The U.S. government says
crimp sales for companies that Chinese suppliers, in-
with revenue heavily tied cluding Huawei and its
to China. smaller rival, ZTE Corp.,
Broadcom and Qualcomm In this May 13, 2019 file photo, the NYSE logo is displayed at the New York Stock Exchange. pose an espionage threat
are both Huawei suppliers Associated Press because they are behold-
and each get at least half en to China's ruling Com-
their revenue from China. on the Dow Jones Industrial favorable regulatory de- behemoth Home Depot munist Party.
Their stocks, along those of Average. Alphabet Inc., cision will speed up their will report its quarterly re- Qualcomm, which gets
most other major chipmak- Google's parent company, $26.5 billion merger. sults Tuesday and retail gi- about 65% of its revenue
ers slumped. slid 2.1% after it indicated Banks and other financial ant Target will report results from China, slumped 5.6%.
The Huawei ban is also that it would have to cut stocks were the best per- Wednesday. Broadcom, which gets
adding more anxiety to some features on Huawei formers. Capital One Finan- KEEPING SCORE: The S&P nearly half of its revenue
a market worried about smartphones. Other com- cial added 1%. 500 was down 0.6% as of from China, fell 4.1%. Intel
further escalations in the munications stocks moved Utilities also eked out gains 1:25 p.m. Eastern Time. The dropped 2.6% and Xilinx slid
trade war between the lower. Facebook dropped as investors looked for less- Dow Jones Industrial Aver- 2.8%.
U.S. and China. Both sides 1.5% and Comcast gave risky holdings. Utilities typi- age fell 75 points, or 0.3%, SPARKING CONCERN: Tesla
have gone back and forth up 1.9%. cally benefit when inves- to 25,688. The technology fell 3.1% after an analyst at
raising additional tariffs on Consumer-focused stocks tors are concerned about heavy Nasdaq composite WedBush said there seems
each other's goods. The un- also fell. Starbucks was a slowdown in economic slid 1.3%. to be mixed signals on de-
certainty is putting a dent among the big decliners, growth and want to put Major stock indexes in Eu- mand for the electric car
in investor confidence and shedding 2.4%. their money into safer hold- rope were broadly lower. maker's Model 3, which
has pushed stocks lower American Airlines had the ings. GOOD CONNECTION: T-Mo- could make it harder for the
the last two weeks. steepest decline among Companies are nearing the bile and Sprint appear clos- company to turn a profit in
The S&P 500 has fallen 3.4% major airlines after Mor- end of the latest earnings er to completing a merger the next couple of quarters
so far this month, taking a gan Stanley warned that it season. The results have after the chairman of the and beyond.
bit of the shine off a stellar faces higher labor costs on not been as bad as Wall Federal Communications In the client note Monday,
start to the year. The index top of higher fuel costs. The Street feared, with profit in Commission said he plans Daniel Ives kept his "Neu-
is still up 13.5% year to date. stock was down 2.6%. the broad S&P 500 index to recommend approval of tral" rating on the stock, but
Apple fell 3.5% Monday T-Mobile and Sprint gained contracting less than 1%. the deal. The full commis- lowered his price target to
and was the biggest drag on hopes that an expected Home repair and supplies sion must still vote, and the $230 from $275.q