NEW YORK (AP) — U.S. stocks are skidding Monday morning as global stocks also took losses. Energy companies are falling the farthest although the price of oil is little changed. Companies including Xerox and drugmaker Perrigo are down after reporting disappointing earnings.
KEEPING SCORE: The Dow Jones industrial average fell 137 points, or 0.8 percent, to 17,866 as of 10:40 a.m. Eastern time. The Standard & Poor’s 500 index lost 13 points, or 0.6 percent, to 2,078. The Nasdaq composite index slid 25 points, or 0.5 percent, to 4,881.
COPY THAT: Xerox cut its profit estimate for the year after its first-quarter profit dropped 85 percent. The company’s costs went up as it gets ready to split into two businesses, and its revenue fell. The stock shed $1.39, or 12.4 percent, to $9.78.
PERRI-GOING: Irish drugmaker Perrigo is tumbling after it cut its profit forecast. The company said prices for over-the-counter products in Europe are down, and it may take an impairment charge for a business it bought just a year ago.
Perrigo’s CEO also left the company to join Valeant Pharmaceuticals. The stock lost $15.95, or 13.1 percent, to $105.40.
EARNINGS: Corporate earnings statements pick up a head of steam this week. Around a third of the S&P 500 are due to report their results. Those companies include Apple, Procter & Gamble, Amazon, Boeing and Exxon.
GET THAT PAPER: Gannett, the owner of USA Today and other papers, offered to buy Tribune Publishing for $388 million. Tribune owns 11 newspapers including the Los Angeles Times and Chicago Tribune. It said Tribune has refused to start constructive talks.
Gannett stock rose 23 cents, or 1.5 percent, to $16.
LOSSES ALL AROUND: Banks and industrial and materials companies all fell. Citigroup shed 75 cents, or 1.6 percent, to $46.22 and insurer Prudential lost $1.40, or 1.8 percent, to $78.18. Railroad company Union Pacific gave up $2.01, or 2.2 percent, to $87.62 and mining and construction equipment maker Caterpillar declined $1.53, or 2 percent, to $76.79. Packaging companies fell, with WestRock off $1.48, or 3.6 percent, to $39.26 and International Paper down 95 cents, or 2.2 percent, to $42.41. Aluminum company Alcoa retreated 23 cents, or 2.2 percent, to $10.17.
IT CHECKS OUT: Laboratory Corp. of America rose $1.73, or 1.4 percent, to $123.50. The medical laboratory operator’s profit and revenue were stronger than analysts expected.
GOOD DATA: First Data Corp. jumped 89 cents, or 6.8 percent, to $13.89. The electronic commerce and payment services provider reported a larger profit than analysts expected.
HOME SALES TUMBLE: For the third month in a row, sales of new homes decreased in March. The Commerce Department said overall sales fell 1.5 percent as sales in the West dropped more than 20 percent. Homebuilder stocks were broadly lower. PulteGroup sank 34 cents, or 1.8 percent, to $18.71 and KB Home dropped 24 cents, or 1.7 percent, to $14.16.
CENTRAL BANKS: Central bank policy meetings in Japan and the U.S. are the focus of investors’ attention this week. The Federal Reserve will meet Tuesday and Wednesday. Investors don’t expect it to raise interest rates, but the Fed’s comments about the U.S. and global economy will be closely watched.
Traders will look to see whether the Japanese central bank enacts a further stimulus.
SAUDI ARABIA: As part of a series of economic reforms, the government of Saudi Arabia said a portion of the world’s largest oil company will go public. The kingdom valued Saudi Aramco at more than $2 trillion. It’s long been considered the most valuable company in the world. Apple, the most valuable publicly traded company, has a market capitalization of about $585 billion.
ENERGY: Benchmark U.S. crude inched down 32 cents to $43.41 a barrel in New York. Brent crude, used to price international oils, lost 3 cents to $45.08.
METALS: The price of gold rose $12.70, or 1 percent, to $1,242.70 an ounce. Silver gained 18 cents, or 1 percent, to $17.08 an ounce.
OVERSEAS: Germany’s DAX fell 1.1 percent and France’s CAC 40 slipped 0.8 percent. Britain’s FTSE 100 lost 0.8 percent. Japan’s benchmark Nikkei 225 dipped 0.8 percent. In South Korea the Kospi inched down 0.1 percent. Hong Kong’s Hang Seng fell 0.8 percent.
BONDS, CURRENCIES: Bond prices held steady. The yield on the 10-year U.S. Treasury note was unchanged at 1.89 percent. The euro rose to $1.11261 from $1.1245. The dollar fell to 110.99 yen from 111.67 yen.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay
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