Summary: The S&P 500 lost ground for a third straight session, hurt by a crackdown on tax inversions, U.S. attacks against militants in Syria, and lingering worries about high-flying tech stocks. Conway G. Gittens reports.
PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL The S&P 500 suffers through it worst three-day slump since April as military conflict in the Middle East adds to a growing list of reasons for buyers to sit on the sidelines. The Dow is down only two days in a row, while the Nasdaq joins the S&P 500 with a triple defeat. Tripped up by the Treasury. That's another reason for the downward move. The U.S. Treasury is cracking down on tax inversions and that erased over $12 billion of value from the stock market. Tax inversion is the name given when U.S. companies try to buy foreign firms in countries where taxes are lower in order to take advantage of that lower tax rate. Looking at companies impacted: AbbVie and Shire which agreed to merge - those stocks were down, Medtronic and Covidien which are closing their deal - also down, Burger King and Tim Hortons - down as well. A mixed picture in tech land. Yahoo gaining ground for the first time since the record-breaking Alibaba IPO. Yahoo has a 16 percent stake in China's e-commerce giant. Alibaba shares, however, continue to slide after a stunning debut. Alibaba Founder Jack Ma, speaking at the Clinton Global Initiative, says he plans to invest in giving smaller-to-mid size enterprises, or SME, a stronger hand. SOUNDBITE: ALIBABA FOUNDER JACK MA (ENGLISH) SAYING: "In the whole world there are only 7 billion people, only a half billion people are online shopping. There is - that's 6.5 billion people still live in the rural areas. There are opportunities we could have. So we are going to keep on doing that -trying to help Nigeria SME (small-to-mid sized enterprise) can sell to Philippine, Philippine can sell to Pakistan, Pakistan can sell to Argentina- if we can make that thing happen, that's where the money should be going into." Tighter lending standards slammed the brakes on profit growth at Carmax. The nation's largest used-car seller posted earnings that missed forecasts. Revenues exceeded targets thanks to stronger new car sales. The stock down roughly 9-1/2 percent. Staying with cars, Cadillac is getting a new address. General Motors' luxury brand is moving its headquarters to the bright lights of New York City from struggling Detroit. The move is aimed at polishing up the brands image in and outside of the U.S. Oil prices on the rise after the U.S. and its allies attack militants in Syria. Crude oil ending above $91-1/2 a barrel. In Europe....Economic worries grab investors' attention - sending share prices lower for a second day.