FILE- In this April 2, 2019, file photo specialist Gregg Maloney, left, and trader Tommy Kalikas work on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Tuesday, April 9. (AP Photo/Richard Drew, File)

Stocks move broadly lower, threatening S&P 500 win streak

April 09, 2019 - 1:42 pm

Industrial companies led a slide in U.S. stocks Tuesday afternoon, threatening to snap the market's eight-day winning streak.

Financial companies, cruise lines and hotel operators also helped pull the market lower. General Electric fell 3.1%, Morgan Stanley slid 1.4%, MGM Resorts International dropped 3.2% and Norwegian Cruise Lines was down 2%.

Those losses offset gains in stocks of communications service providers, a broad category that includes entertainment, telecommunications and internet companies. Facebook rose 2.3%

In another sign that investors were moving money into safer holdings, bond prices rose, sending yields lower. The yield on the benchmark 10-year Treasury fell to 2.49% from 2.52% late Monday.

The slide in stocks followed a dour forecast for economic growth from The International Monetary Fund. The IMF projects 3.3% global growth in 2019, matching the weakest year since 2009. The U.S. fares particularly poorly, with growth now expected at 2.3%, down from 2.9% in 2018.

The IMF report landed in a busy week for investors. The U.S. Federal Reserve will release minutes from its latest policy meeting on Wednesday and The European Central Bank will also meet Wednesday.

The latest round of corporate earnings reports will kick off on Wednesday with Delta Air Lines. Several banks, including JPMorgan Chase, will release their first-quarter results on Friday. Analysts expect earnings for the S&P 500 to decline for the first time in almost three years.

KEEPING SCORE: The benchmark S&P 500 index was down 0.6% as of 1:33 p.m. Eastern Time. The Dow Jones Industrial Average dropped 184 points, or 0.7% to 26,156. The Nasdaq composite fell 0.4% and the Russell 2000 index of small-cap stocks gave up 0.5%.

Major indexes in Europe also fell.

TRADE TROUBLES: European markets gave up early gains and turned broadly lower after the U.S. threatened to impose $11.2 billion of tariffs on European products, including cheese, wine and helicopters. The move would escalate a global trade war at the same time the U.S. is trying to resolve a trade dispute with China.

The threat from President Donald Trump could make investors even more concerned about trade disputes hurting an already slowing global economy. The latest tariff threat would punish the European Union for subsidizing plane maker Airbus, which competes with U.S.-based Boeing.

The spat between the U.S. and China has already made a list of goods more expensive for consumers and is weighing on an already slowing Chinese economy. Negotiators met again last week and both sides have said they are making progress toward some kind of resolution.

SOAKED: Pentair led the sell-off in industrial stocks after the maker of pool and other aquatic products slashed its profit forecast for the year. Cold and wet weather weighed down sales in the first quarter for the company's pool equipment, which includes filters and pumps. It also sells equipment used for wells and water treatment facilities. The stock plunged 14.6%.

CLIPPED WINGS: American Airlines Group fell 1.9% after the airline cut a key revenue measure because of grounded flights following Boeing's 737 Max troubles.

Regulators grounded Boeing's 737 Max jets following two deadly international crashes. That included 24 planes in American Airlines' fleet.

The airline also cited the lingering impact from a government shutdown for the lower revenue estimate.

DEAL ME OUT: Wynn Resorts slid 3.2% after the casino operator pulled out of a potential buyout of Australia's Crown Resorts. The company cited the "premature disclosure of preliminary discussions" as the reason.

The move would have given Wynn a wider global reach.

Late Monday, Crown Resorts told its investors that Wynn was offering about $7.1 billion in cash-and-stock deal.

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AP Business Writer Damian J. Troise contributed to this report.

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