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Wall Street whacked by China, tech, housing

Monday, September 22, 2014 - 02:25

Summary: Stocks end lower as investors lightened up on high-flying tech stocks; Chinese companies traded in the U.S. dinged as stimulus hopes dashed; homebuilders fall after drop in existing home sales. Conway G. Gittens reports.

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The 40 thieves didn't have to show up. Alibaba stole Wall Street's heart with its $25 billion record-setting IPO last week. But its second day of trade was less auspicious after a Chinese official warned there are no new economic stimulus measures being planned for that country. China's largest e-commerce company down more than 4 percent, but it was not alone. Baidu, Dang Dang, JD.com, Qihoo 360, all Chinese stocks traded in the U.S., and all down sharply. Here at home, sales of previously owned homes unexpectedly dropped after four straight months of gains. Even though that probably doesn't mean the housing market is back in trouble: homebuilders like Toll, Lennar, KB Home and Pulte - all on the chopping block. As for the market - Wall Street down across the board - led by an assault on tech stocks - leaving the Nasdaq with its worst day in almost two months. Small caps were also hit on worries segments of the market have run up too far. S&P Capital IQ's Sam Stovall: SOUNDBITE: SAM STOVALL, U.S. EQUITY STRATEGIST, S&P CAPITAL IQ (ENGLISH) SPEAKING: "Valuations can look okay if we end up getting earnings growth that is now currently estimated at three times for small caps what is expected for large caps and I think that is going to be a pretty tough hurdle to surmount." Yahoo has problems of its own. Two firms downgrading the stock on the belief the Internet media company does not have much to show without its stake in Alibaba. Yahoo shares- wiping away all of the gain seen this month. Apple sold more than 10 million iPhones in the first weekend the 6 and 6 plus went on sale - breaking a record for an opening weekend. Hundreds of demonstrators bringing their message of climate change awareness to Wall Street. The mostly peaceful protest, dubbed Flood Wall Street, aimed at protesting the connection between the money raised in the financial markets for companies blamed for contributing to climate change. Trans-Atlantic mergers leading the European headlines: Germany's Merck buying America's Sigma-Aldrich for $17 billion. And another German company, Siemens, scooping up U.S. oilfield equipment maker Dresser-Rand for $7.6 billion. But dealmaking not enough for European stock markets to overlook worries about exports to China.

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Wall Street whacked by China, tech, housing

Monday, September 22, 2014 - 02:25