NEW YORK -- Global stocks took small losses Monday after China reportedly pulled out of trade talks with the U.S. Industrial companies and banks suffered some of the worst declines among American stocks.
The U.S. and China officially began taxing larger amounts of each other's goods Monday, and The Wall Street Journal and Bloomberg News reported that China pulled out of talks that could have led to a new round of negotiations to end the trade war.
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. Oil prices jumped after OPEC decided not to produce more oil.
The S&P 500 index fell 10.30 points, or 0.4 percent, to 2,919.37. The Dow Jones Industrial Average lost 181.45 points, or 0.7 percent, to 26,562.05. Both the S&P 500 and Dow set record highs last week.
The Russell 2000 index of smaller-company stocks dropped 7 points, or 0.4 percent, to 1,705.32. The Nasdaq composite rose 6.29 points, or 0.1 percent, to 7,993.25.
Technology and health care companies rose, leaving U.S. indexes only slightly lower.
"The market's been remarkably resilient over the last couple of months while trade tensions were heating up," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
Sandven said the trade spat will endure past the midterm elections in November, but stocks are likely to keep rising because of strong earnings growth for U.S. companies, combined with low inflation and low interest rates.
Sandven noted that this year's stock gains have been concentrated in technology, retail and health care companies. That was the case Monday, as Apple gained 1.4 percent to $220.79 and drug and infant formula maker Abbott Laboratories advanced 3.5 percent to $71.44. Sandven said it would be an encouraging sign for the market if other sectors do better.
U.S. investors were occupied with other news. 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 1.8 percent to $72.08 a barrel in New York while Brent crude, the international standard for oil prices, rose 3 percent to $81.20 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.
Barrick Gold will buy competitor Randgold Resources for $6.1 billion in stock. The merged company will combine Randgold's African mines with Barrick's holdings in the Americas to form the world's largest gold miner.
Barrick rose 5.4 percent to $11.04 and Randgold gained 6.6 percent to $68.14.
An Italian newspaper reported that the Versace group is on the verge of announcing that it will be acquired, and Bloomberg and Reuters reported that luxury fashion and handbag maker Michael Kors is the buyer. The Italian publication, Corriere della Sera, said the deal is worth $2.4 billion.
Michael Kors stock skidded 8.2 percent to $66.71.
Marijuana-related companies continued to make dramatic moves. Biotechnology company Intrexon soared 31.5 percent to $19.07 in heavy trading after it said it engineered a strain of yeast to produce chemical compounds found in marijuana consistently and at low cost. Scientists say that's been a problem in researching the drug.
Canadian medical marijuana company Tilray sank 19.1 percent to $99.50, its third consecutive big loss. Before that, the stock's value nearly tripled over the course of a week and a half.
Business on 09/25/2018