Facebook sends Nasdaq tumbling, but trade optimism boosts Dow
By April Joyner NEW YORK (Reuters) - A plunge in Facebook Inc's shares pushed the Nasdaq down more than 1 percent on Thursday, the index's biggest one-day drop in a month, but industrial stocks rose after the United States and the European Union said they would negotiate on trade.
By April Joyner
NEW YORK (Reuters) - A plunge in Facebook Inc's
Facebook shares dived 19.0 percent, their biggest ever one-day percentage drop, after the social media giant forecast years of lower profit margins. The decline in Facebook shares weighed on the S&P 500 technology index <.SPLRCT>, which dropped 1.6 percent.
Shares of Amazon.com Inc
Shares of Twitter Inc
But while the Nasdaq and the S&P 500 slumped, the Dow rose, in part on the strength of industrial stocks. Industrials, which have been a bellwether of trade tensions, were lifted after U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work to resolve U.S. tariffs on steel and aluminium and Europe's retaliatory duties.
S&P 500 energy stocks <.SPNY> also advanced, ending the session up 1.0 percent, as oil prices rose on the disruption of some of Saudi Arabia's oil shipments.
"What we're seeing is the market broadening out, which is healthy," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "We need to see a rotation take place when the leadership is under pressure, and the high-flying tech names have been in the leadership position."
The Dow Jones Industrial Average <.DJI> rose 112.97 points, or 0.44 percent, to 25,527.07, the S&P 500 <.SPX> lost 8.63 points, or 0.30 percent, to 2,837.44 and the Nasdaq Composite <.IXIC> dropped 80.05 points, or 1.01 percent, to 7,852.19.
Another drag on the S&P and Nasdaq was Biogen Inc
Chipmakers, however, were a bright spot amid Thursday's declines. The Philadelphia SE Semiconductor Index <.SOX> rose 1.9 percent.
Shares of Advanced Micro Devices Inc
Shares of Qualcomm Inc
Advancing issues outnumbered declining ones on the NYSE by a 1.33-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favoured advancers.
The S&P 500 posted 52 new 52-week highs and five new lows; the Nasdaq Composite recorded 112 new highs and 73 new lows.
Volume on U.S. exchanges was 7.05 billion shares, compared with the 6.06 billion-share average for the full session over the last 20 trading days.
(Reporting by April Joyner; Additional reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta, Susan Thomas and Jonathan Oatis)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.