The pharmacy chain said the FDA is not recommending people stop taking the stomach-acid-reducing drugs yet. However, it is encouraging patrons who bought these products to return them for a refund.
NEW YORK – A surprise contraction in U.S. manufacturing last month knocked the stock market lower Tuesday, erasing an early rally.
The report from the Institute for Supply Management heightened concerns that the U.S.-China trade war is slowing down economic growth. The feud has also been sapping business confidence and prompting companies to hold off on investing and hiring.
Bond prices jumped after the ISM report came out, sending yields lower, as investors sought out safe assets. The yield on the 10-year Treasury immediately dropped to 1.62% from 1.73%, a very large move.
Charles Schwab plunged after eliminating commissions for online trading, escalating a price war with other online brokerages. Rivals TD Ameritrade and ETrade Financial nosedived in heavy trading.
Sliding bond yields helped make financial stocks the biggest losers. Industrial stocks also fell broadly, led by Union Pacific’s 3.4% drop and a 3.5% slide from UPS. Every sector slumped, though utilities and makers of consumer products, both safe-play sectors, fell only slightly.
The weak manufacturing report is especially worrisome because analysts and economists fear that the slowdown is a prelude to a broader slide in consumer confidence and spending. Consumers have so far been the biggest driver of economic growth and a more cautious turn by them could result in a painful economic downturn.
Investors still have a busy week ahead. The Institute for Supply Management will release its service sector index on Thursday. That report will likely be closely watched, considering that services make up the bulk of the U.S. economy.
The Labor Department will release employment data for September on Friday.
Charles Schwab eliminates online trading commissions: Fee war escalates, stock tanks
The S&P 500 index fell 1.2% as of 1:37 p.m. Eastern time. The Dow Jones Industrial Average fell 332 points, or 1.2%, to 26,571. The Nasdaq fell 1.1%. Small-company stocks fell more than the rest of the market. The Russell 2000 index lost 1.7%.
The ISM report showed that manufacturing contracted for the second straight month in September and hit the lowest level in more than a decade. It’s the latest sign that President Donald Trump’s trade wars are hitting the U.S. factory sector. Analysts had expected manufacturing to expand slightly.
“The disappointing data is only fanning long-standing fears of slowing global growth,” said Alec Young, managing director of Global Markets Research at FTSE Russell.
Charles Schwab plunged 9.8% after the brokerage and financial adviser said it is eliminating trading commissions on stocks, exchanged-trade funds and options. Rival discount brokers fell even more as investors anticipated another escalation in the fight to lower trading costs for investors. TD Ameritrade sank 21% and ETrade Financial dropped 16.8%. All three were moving in very heavy trading.
Stocks in Europe moved broadly lower and Asian stocks were mixed, though Chinese markets were closed for the National Day holiday marking the 70th anniversary of the founding of the People’s Republic.
Inflation in the 19 countries that use the euro weakened in September, slipping farther from the European Central Bank’s goal in a possible sign of more economic weakness. Also, The World Trade Organization cut sharply its forecasts for trade growth this year and next. It expects global trade to weaken this year to the slowest pace since the Great Recession due to the U.S.-China trade war.
McCormick rose 6.6% after the spices and flavoring maker raised its 2019 profit forecast following a third quarter profit report that beat Wall Street expectations. The company reported sales growth from spices, herbs and other consumer products in the Americas and Asia Pacific regions.
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