FILE- This Dec. 21, 2016, file photo shows the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Monday, Sept. 24, 2018. (AP Photo/Mark Lennihan, File)

Global stocks dip on report US, China call off trade talks

September 24, 2018 - 12:57 pm

NEW YORK (AP) — Global stocks are down Monday after the U.S. and China officially put new tariffs on each other's goods. China also reportedly pulled out of a meeting to discuss trade.

Oil prices are jumping after OPEC decided not to produce more oil. Several major deals were announced over the weekend. Cable and internet company Comcast outbid Twenty-First Century Fox and won an auction for British pay TV company Sky, but Comcast shares are seeing the biggest decline on the S&P 500.

KEEPING SCORE: The S&P 500 index fell 10 points, or 0.4 percent, to 2,918 as of 1:45 p.m. Eastern time. The Dow Jones Industrial Average lost 164 points, or 0.6 percent, to 26,578. Both the S&P 500 and Dow set record highs last week.

The Russell 2000 index of smaller-company stocks dropped 9 points, or 0.5 percent, to 1,703. The Nasdaq composite was unchanged at 7,986 as technology and health care companies fared better than the rest of the market.

Stocks rallied over the summer and into autumn without making a lot of big one-day moves. After a volatile stretch early this year, the S&P hasn't risen or fallen 1 percent in a day since late June.

CHINA-US TRADE: The U.S. and China recently discussed another meeting to work on their trade dispute, but the Wall Street Journal reported that China pulled out of those talks.

The U.S. is now taxing another $200 billion in Chinese imports at a rate of 10 percent, and China added taxes of 5 to 10 percent on $60 billion in U.S. products. That represents a big escalation, as both countries placed tariffs on $50 billion in goods earlier as part of a dispute over Beijing's state-led technology development and other policies.

In the U.S., industrial and basic materials companies sank. General Electric fell 4 percent to $11.68 and Caterpillar lost 1.5 percent to $154.04. DowDuPont shed 2.1 percent to $68.25.

Overseas, Germany's DAX fell 0.6 percent and the CAC 40 in France lost 0.3 percent. The FTSE 100 in Britain dipped 0.4 percent. Hong Kong's Hang Seng index fell 1.6 percent and India's Sensex gave up 1.5 percent. Markets in Japan and South Korea were closed for national holidays.

CHANNEL CHANGER: Late Friday Comcast won an auction for majority control of British pay TV giant Sky. Its final offer was worth about $39 billion and topped an offer from Twenty-First Century Fox, which is already a major Sky shareholder. Both sought to establish a foothold in Europe.

In London, Sky shares jumped 8.6 percent. Comcast sank 6.9 percent to $35.30, while Fox rose 1.5 percent to $45.01. Disney, which is buying Fox, climbed 1.9 percent to $112.53.

ENERGY: OPEC and key allies like Russia decided not to increase their oil output further. Production is falling in some OPEC nations, including Iran, which faces new sanctions from the U.S. Benchmark U.S. crude gained 1.9 percent to $72.14 a barrel in New York while Brent crude, the international standard for oil prices, rose 2.8 percent to $80.44 a barrel in London, its highest price in more than three years.

Airlines and other transportation companies fell as investors anticipated they will have to pay higher prices for fuel.

BOOMBOX: Subscription radio company Sirius XM says it's buying music streaming service Pandora Media. Sirius XM has 36 million subscribers in North America and Pandora has 70 million monthly active users. The deal will to expand its service beyond cars and into homes and other mobile areas. The companies valued the deal at about $3.5 billion in stock.

Pandora edged up 0.6 percent to $9.15 while Sirius fell 8.7 percent to $6.36.

STRIKING GOLD: Barrick Gold will buy competitor Randgold Resources for $6.1 billion in stock to create the world's largest gold miner. Shareholders in Barrick, which is based in Toronto, will own about 66.6 percent of the merged company, which will combine Randgold's African mines with Barrick's holdings in the Americas.

Barrick rose 6.3 percent to $11.13 and Randgold gained 7.2 percent to $68.53.

DONATELLA-ME IT'S A DONE DEAL: An Italian newspaper reports that the Versace group is on the verge of announcing its sale, and Bloomberg and Reuters reported that luxury fashion and handbag maker Michael Kors is the buyer. The Italian publication, Corriere della Sella, said the deal is worth 2 billion euros ($2.4 billion).

Michael Kors stock skidded 7.6 percent to $67.14.

HIGHS AND LOWS: Marijuana growers continued to make dramatic moves. Biotechnology company Intrexon soared 33.7 percent to $19.39 in heavy trading after it said it engineered a strain of yeast to produce chemical compounds found in marijuana consistently and at low cost. That's been a problem in researching the drug.

Canadian medical marijuana company Tilray sank 15.6 percent to $103.86. It's on track for its third consecutive big loss, but before that, its value nearly tripled over the course of a week and a half.

BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 3.09 percent from 3.06 percent.

METALS: Gold added 0.3 percent to $1,204.40 an ounce. Silver lost 0.1 percent to $14.34 an ounce. Copper fell 0.8 percent to $2.84 a pound.

CURRENCIES: The dollar rose to 112.72 yen from 112.52 yen. The euro edged up to $1.1759 from $1.1747.

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay

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