A slide in health care, materials and utilities companies helped pull U.S. stock indexes lower in morning trading Tuesday. Energy stocks also fell as the price of crude oil headed lower. Apple rose after rival Samsung discontinued its troubled Galaxy Note 7.
KEEPING SCORE: The Dow Jones industrial average fell 163 points, or 0.9 percent, to 18,165 as of 11:15 a.m. Eastern time. The Standard & Poor’s 500 index slid 21 points, or 1 percent, to 2,141. The Nasdaq composite index lost 58 points, or 1.1 percent, to 5,270.
THE QUOTE: Most of the market’s attention was on bond markets, with yields now back at levels not seen in about six months, noted Erik Davidson, chief investment officer for Wells Fargo Private Bank. Bond yields are being driven up amid growing anticipation among investors that the Federal Reserve will raise its key interest rate later this year, as well as uneasiness over the impact of rising oil prices.
“Oil having done well, historically, that’s been bad for the market,” Davidson said. “With oil back above $50 (a barrel), the market is starting to have some concern about that.”
BIG SLUMP: Illumina sank 25.8 percent after the genetics research company announced late Monday that its third-quarter revenue fell short of Wall Street’s expectations. The stock shed $47.77 to $137.08.