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-
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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.
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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.”
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