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US stocks drop along with European equities as ECB keeps interest rates unchanged

by

NEW YORK Sep 08, 2016 - 12:00 am GMT+3
In this file photo, the American flag flies above the Wall Street entrance to the New York Stock Exchange.  AP Photo
In this file photo, the American flag flies above the Wall Street entrance to the New York Stock Exchange. | AP Photo
by Sep 08, 2016 12:00 am

Wall Street stocks opened lower Thursday, joining European equities in retreating after the European Central Bank kept interest rates unchanged.

The Nasdaq was hit by a 2.1 percent drop in Apple shares after the technology giant's launch Wednesday of new iPhone models drew mixed reviews.

About 40 minutes into trade, the Dow Jones Industrial Average was at 18,464.50, down 0.3 percent.

The broad-based S&P 500 shed 0.3 percent to 2,180.06, while the tech-rich Nasdaq Composite Index pulled back from a record, tumbled 0.5 percent to 5,256.59.

Equity markets in Paris and Frankfurt were both down more than one percent after the ECB, as expected, kept record-low interest rates unchanged and did not expand its asset-buying program.

ECB chief Mario Draghi said the central bank could enact additional stimulus, but wanted to first assess the impact of measures already taken.

Apple's introduction of two new smartphones without headphone jacks failed to spur new support for the stock of the world's largest company by market value.

Other technology companies also declined, including Facebook, Twitter and Tesla Motors.

Dow member Nike fell 1.5 percent after being downgraded by Pipe Jaffray.

Hewlett Packard Enterprise Company dropped 2.0 percent after announcing plans to spin off non-core software assets, to be merged with British software group Micro Focus. Under the deal, HPE shareholders will get 50.1 percent ownership of the new combined company and a $2.5 billion cash payment.

Dow member Intel shed 0.3 percent as it said it would spin off its cybersecurity operations as an independent company under the name McAfee. The spinoff would be made with the investment group TPG, which would own 51 percent of McAfee, leaving Intel with 49 percent and valuing the group at $4.2 billion.

Tractor Supply Company slumped 16.3 percent after forecasting that third-quarter comparable store sales would be from flat to a decline of one percent.

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