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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Nov. 21, 2018)
NATION/WORLD Wednesday, November 21, 2018 East Oregonian Page 7A Tech giants plunge again, pushing market into red for year By MARLEY JAY AP Markets Writer NEW YORK — Stocks dropped again Tuesday as losses mounted for the world’s largest technology companies. Retailers also fell, and energy companies plunged with oil prices as the market sank back into the red for the year. Oil prices tumbled another 6.6 percent as Wall Street reacted to rising oil supplies and concerns that global economic growth will slow down, a worry that’s intensified because of the trade tensions between the U.S. and China. U.S. crude has plunged 30 percent since early October. Technology companies were hit after the Trump administration proposed new national security regulations that could limit exports of high-tech products in fields, such as quantum computing, machine learning and artifi- cial intelligence. Retailers also skidded. Target’s profit disappointed investors as it spends more money to revamp its stores and its website, while Ross Stores, TJX and Kohl’s also fell on disappointing forecasts. The S&P 500 index lost 48.84 points, or 1.8 percent, to 2,641.89. The Dow Jones Industrial Average sank 551.80 points, or 2.2 percent, to 24,465.64. The tech-heavy Nasdaq composite lost 119.65 points, P Photo/Richard Drew, File In this Nov. 9, 2018, file photo trader Vincent Napolitano, left, works on the floor of the New York Stock Exchange. or 1.7 percent, to 6,908.82. The Russell 2000 index of smaller-company stocks shed 27.53 points, or 1.8 per- cent, to 1,469.01. The Dow Jones Industrial Average has lost 3.7 percent in the last two days, and the S&P 500 is off 3.4 percent. The Nasdaq, heavily popu- lated with technology stocks, is off 4.7 percent. The S&P 500 index has fallen 9.9 per- cent from the record high it set exactly two months ago. Investors are measur- ing a number of headwinds and increasingly playing it safe. The global economy is showing signs of weakening, with the United States, China and Europe all facing the ris- ing threat of a slowdown, which can hurt demand for commodities, such as oil, and pose a threat to com- pany profits. Trade tensions between the U.S. and China appear to be getting worse instead of improving, con- tributing to the sell-off in tech stocks and multinational industrial companies. For much of this year, investors were hopeful the U.S. and China would eas- ily resolve their differences on trade. That hope has faded in the last two months. Later this month U.S. President Donald Trump and China President Xi Jinping are expected to meet at a gather- ing of the Group of 20 major economies, and for inves- tors, the newly proposed lim- its on tech exports were one more hint the leaders proba- bly won’t reach a deal. “A resolution doesn’t seem to be coming in the short term,” said Katie Nixon, the chief investment officer for Northern Trust Wealth Management. “A lot of the companies that are front and center (like) Alpha- bet, Apple, IBM ... could be significantly limited in the way they export their technology.” Apple fell 4.8 percent to $176.98 and is down 23.7 percent from the peak it reached Oct. 3, though it’s still up almost 5 percent this year. Microsoft lost 2.8 per- cent to $101.71 and IBM fell 2.6 percent to $117.20. As the tech giants swoon, investors have lately turned to safer bets, such as utili- ties, real estate companies and makers of household goods. They’ve also sought the safety of U.S. Treasuries. The price of oil has been falling sharply in recent weeks, and is now down 30 percent since October 3. Saudi Arabia and other countries started produc- ing more oil earlier this year after the Trump adminis- tration announced renewed sanctions on Iran, Nixon noted. The administration then granted waivers to sev- eral countries allowing them to continue importing Iranian oil, creating a supply glut that pushed prices dramati- cally lower. Nixon said OPEC coun- tries will probably cut back on oil production, but some investors are worried that the buildup in crude stockpiles is a sign the global econ- omy isn’t doing as well as expected. Earnings from retailers didn’t help investors’ mood. Target plunged 10.5 per- cent to $69.03 after report- ing earnings that missed Wall Street’s estimates due to higher expenses. Trump says no penalty for Saudi prince for Khashoggi murder By DEB RIECHMANN Associated Press WASHINGTON (AP) — President Donald Trump declared Tuesday he would not further punish Saudi Arabia for the murder of U.S.-based columnist Jamal Khashoggi — making clear in an exclamation-filled statement that the bene- fits of good relations with the kingdom outweigh the possibility its crown prince ordered the killing. The president con- demned the brutal slaying of Khashoggi inside the Saudi consulate in Istanbul as a “horrible crime ... that our country does not condone.” But he rejected calls by many in Congress, including members of his own party, for a tougher response, and also dismissed reports from U.S. intelligence agencies that Crown Prince Moham- med bin Salman must have at least known about such an audacious and intricate plot. “It could very well be that the crown prince had knowledge of this tragic event,” the president said. “Maybe he did and maybe he didn’t!” In many ways, the state- ment captured Trump’s view of the world and foreign pol- icy, grounded in economic necessity. It began with the words “America First!” fol- lowed by “The world is a very dangerous place!” It came after weeks of debate over Trump’s, said whether the pres- Republican Sen. ident would or Rand Paul of should come down Kentucky, con- tending the hard on the Sau- dis and the crown administration prince in response has “blinders on” to the killing of the in comparing Iran Saudi columnist and Saudi Arabia. for The Washing- Khashoggi “It’s a sign of ton Post who had weakness not to criticized the royal family. stand up to Saudi Arabia,” The U.S. earlier sanc- Paul said in an interview. tioned 17 Saudi officials “Sometimes when you have suspected of being respon- two evils, maybe you don’t sible for or complicit in the support either side.” Oct. 2 killing, but members Republican Lindsey of Congress have called for Graham, the South Caro- harsher actions, including lina senator who is close to Trump, also disagreed with canceling arms sales. Trump said “foolishly the president’s statement, canceling these contracts” saying America must not worth billions of dollars lose its “moral voice” on the would only benefit Rus- international stage. sia and China, which would “It is not in our national be next in line to supply the security interests to look the weapons. Critics denounced other way when it comes Trump’s statement saying to the brutal murder of Mr. he ignored human rights and Jamal Khashoggi,” Graham granted Saudi Arabia a pass said. for economic reasons. Likewise, Rep. Adam Asked by a reporter if Schiff, ranking Demo- he was saying that human crat on the House intelli- rights are too expensive gence committee, said that to fight for, he responded, to suggest that U.S. silence “No, I’m not saying that at can be bought with arms all.” But then he switched sales “undermines respect the subject to the “terrorist for the office of the pres- nation” of Iran rather than idency, the credibility of any actions by Saudi Arabia. our intelligence community The U.S. needs a “coun- and America’s standing as a terbalance” to Iran, “and champion of human rights.” Israel needs help, too,” he Trump’s statement, said. “If we abandon Saudi issued just before he par- Arabia, it would be a terri- doned the Thanksgiving ble mistake.” turkey at the White House The mistake was and left for the long hol- MCKAY CREEK ESTATES Are you worried about falling? McKay Creek Estates 1601 Southgate Pl. • Pendleton, OR 97801 www.PrestigeCare.com sonal financial involvement, he said, “Saudi Arabia has nothing to do with me. What does have to do with me is putting America first.” Trump said that King Salman and Crown Prince Mohammed both “vigor- ously deny” any knowledge of the planning or execution of the killing. He also said the CIA has not made a con- clusive determination about whether the crown prince ordered it. A U.S. official familiar with the case told The Asso- ciated Press last week that intelligence officials had concluded that the crown prince, the kingdom’s de facto leader, did order the killing. Others familiar with the case, however, have cau- tioned that while it’s likely the crown prince had a role there continue to be ques- tions about the degree. ‘Tis the Season in the Hermist on Downtown Dist rict! Nov. 23 • Black Friday Nov. 24 • Small Business Saturday Dec. 6 • Tree Lighting Ceremony at 6pm Music, hot chocolate and a campfi re. Vendors will be on hand with food and holiday treats. Dec. 6 • First Th ursday & Ladies’ Day Dec. 20 • Men’s Day If you knew that there are several simple steps you can take to reduce your risk of falling, would you do it? You can make a difference. Stay independent longer by fall proofing your home and by getting your glasses and feet checked. Most importantly you can energize your body with exercise. By improving your strength, flexibility and balance you can significantly reduce your risk of a potentially serious fall. Call (541) 704-7146 today to schedule your FREE FALL REDUCTION EVALUATION. iday weekend in Florida, underscored his world view of putting U.S. interests — both financial and geopolit- ical — above all else. He told reporters on the South Lawn that oil prices would “skyrocket” if the U.S. broke with the Sau- dis, and he was not going to “destroy” the world’s econ- omy by being “foolish with Saudi Arabia.” Asked about any per- STEP INTO SAVINGS! Take posession of your apartment by August 31, 2018 and receive your 2nd and 4th month rent FREE. Dec. 22 • 9-11:30am Hermiston Community Center Pancakes With Santa Enjoy a wonderful holiday breakfast with Santa.
