July 30 (Reuters) – A broad sell-off of technology stockspushed the three major U.S. stock indexes lower on Monday, withthe Nasdaq Composite posting its third consecutive loss of morethan 1 percent for the first time in three years just days afterhitting a record high.
The technology index .SPLRCT tumbled 1.8 percent asinvestors looked to other sectors or took profits ahead of thevolatile midterm election season.
Shares of Facebook IncFB.O and Netflix IncNFLX.O slid2.2 percent and 5.7 percent, respectively, pulling their fellowso-called FAANG stocks lower. Other FAANG stocks include AppleInc AAPL.O , Amazon.comAMZN.O , and Google parent AlphabetInc GOOGL.O .
But technology fell across the board, pushing all threemajor U.S. stock indexes into negative territory.
The tech-heavy Nasdaq has also seen a sharp uptick in thenumber of stocks striking 52-week lows. On Monday, 102Nasdaq-listed stocks fell to their lowest price in a year ormore, 65 more than those hitting new highs. urn:newsml:reuters.com:*:nL1N1UQ105
“There’s an enormous amount of money (in tech stocks) andsome of that money is rotating out or moving to the sidelines,”said Wayne Kaufman, chief market analyst at Phoenix FinancialServices in New York. “People are concerned about the typicalmidterm election year cycle.”
“And tariff jitters are front and center,” Kaufman added.
Control of both the U.S. House of Representatives and Senateare at stake in the November midterm elections.
With second-quarter reporting season now well past itsmid-point, analysts now expect S&P earnings to have increased by22.6 percent, up from the 20.7 percent seen on July 1. Of the270 companies that have posted results, 82.6 percent have beatconsensus estimates.
The Dow Jones Industrial Average .DJI fell 144.23 points,or 0.57 percent, to 25,306.83, the S&P 500 .SPX lost 16.22points, or 0.58 percent, to 2,802.6, and the Nasdaq Composite .IXIC dropped 107.42 points, or 1.39 percent, to 7,630.00.
Of the 11 major sectors of the S&P 500, seven closed innegative territory.
Shares of CBS CorpCBS.N extended their fall, dropping 5.1percent. The media company’s board met on Monday to discusspersonal misconduct allegations against Chief Executive LeslieMoonves and said it was selecting outside counsel to conduct aninvestigation. urn:newsml:reuters.com:*:nL1N1UQ105urn:newsml:reuters.com:*:nL4N1UQ4XA
Tyson Foods IncTSN.N slid 7.6 percent after the companycut its full-year profit forecast, citing the potential impactof tariffs. urn:newsml:reuters.com:*:nL4N1UQ4D9
The warning also weighed on shares of Hormel Foods CorpHRL.N and Pilgrim’s Pride CorpPPC.O , which ended thesession down 2.5 percent and 1.5 percent, respectively.
Industrial bellwether Caterpillar IncCAT.N lost 2.0percent, erasing earlier gains after it exceeded second-quarterexpectations and raised its full-year profit outlook. urn:newsml:reuters.com:*:nL1N1UQ08K
Energy stocks were among the gainers, up 0.8 percent as oilprices LCOc1 rose on potential supply disruptions. urn:newsml:reuters.com:*:nL4N1UQ1NS
AT&T IncT.N rose 3.0 percent after Bank of Americaupgraded its rating on the wireless carrier to “buy.” urn:newsml:reuters.com:*:nL4N1UQ503
Declining issues outnumbered advancing ones on the NYSE by a1.17-to-1 ratio; on Nasdaq, a 1.85-to-1 ratio favored decliners.
The S&P 500 posted 15 new 52-week highs and 2 new lows; theNasdaq Composite recorded 30 new highs and 102 new lows.
Volume on U.S. exchanges was 6.46 billion shares, comparedto the 6.01 billion average for the full session over the last20 trading days.