U.S. stocks dropped on a slump in technology and biotech shares, sending the Nasdaq to its biggest decline in almost a year. Bobbi Rebell reports.
Stocks fell for a third straight day- with the Nasdaq getting whacked- turning in its worst performance in almost a year- pulled down by technology and biotech stocks. All the major indexes closing with sharp drops. Durable goods orders unexpectedly dropped last month when economists were expecting an uptick. Topping the gainers on the S&P 500: Kraft Foods. Ketchup maker H.J. Heinz is buying the manufacturer of Kraft Mac & Cheese and Oscar Mayer meats. Joe Rundle of ETX Capital: SOUNDBITE: JOE RUNDLE, HEAD OF TRADING, ETX CAPITAL (ENGLISH) SAYING: "This deal makes sense because of the amount of cost savings that are available on the plate." Lexmark shares shot higher one day after saying it would buy Kofax. That move would double the size of the printer maker's enterprise software business. Kofax's shares rocketed higher, too. The biggest loser on the Nasdaq: Apollo Education. Fewer students enrolled at its colleges, pushing Apollo's revenue down for the fifteenth straight quarter. Tesla shares fell after CLSA downgraded the electric auto maker to "underperform" from "outperform" and cut its target price. The brokerage says it believes margins on the Model X will be lower than expected, and that could hurt its earnings. Tech stocks slid in Europe, too, pulling shares back from 7-1/2 year highs hit earlier this week.