US stocks dip as Hong Kong weighs on sentiment

Specialist James Scuilli is reflected in screens at a trading post as he works on the floor of the New York Stock Exchange Monday, Sept. 29, 2014. The US stock market drifted lower to start the week, following European markets down. AP

NEW YORK–Wall Street stocks Monday finished lower as a heavy week of US economic data got under way while investors eyed political unrest in Hong Kong.

The Dow Jones Industrial Average dropped 41.93 points (0.25 percent) to 17,071.22, rallying somewhat from a low of 16,934.43 early in the day.

The broad-based S&P 500 lost 5.05 (0.25 percent) at 1,977.80, while the tech-rich Nasdaq Composite Index fell 6.34 (0.14 percent) to 4,505.85.

The Commerce Department reported that US consumer spending rose 0.5 percent in August, while personal income increased 0.3 percent. An index of US pending home sales dipped 1.0 percent to 104.7 in August.

Markets were unnerved by massive street protests in Hong Kong that sent equities in the Asian financial hub 1.9 percent lower.

Brent Schutte, market strategist at BMO Global Asset Management, predicted more big swings like that seen Monday and last week.

“We’re in a volatile period and it’s going to stay that way,” he said.

Apple dropped 0.6 percent following reports that the European Union plans to accuse the tech giant of receiving illegal tax deals in Ireland.

Ford Motor slumped 7.5 percent as the company projected 2014 profits of $6 billion, well below the $7-8 billion previously forecast.

Dow component Intel jumped 1.9 percent after Bank of America Merrill Lynch raised its price target for the stock, arguing that investors have underappreciated the strength of the personal computer (PC) market.

Action camera maker GoPro jumped 10.8 percent as it unveiled new models with improved definition and faster production capacities.

Athlon Energy soared 24.8 percent as Canadian energy company Encana unveiled a $7.1 billion deal to buy the Texas oil and gas producer. Encana rose 2.2 percent.

Tibco Software bolted 21.2 percent higher as it announced it would be acquired by private equity firm Vista Equity Partners for $4.3 billion.

Independent animated film studio DreamWorks Animation SKG jumped 26.0 percent on reports that Japanese telecoms group SoftBank plans a $3.4 billion takeover of the company.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.49 percent from 2.54 percent Friday, while the 30-year dropped to 3.18 percent from 3.22 percent. Bond prices and yields move inversely.