The stock market closed lower but pared losses Thursday in a broad sell-off that hit technology and financials worse than many other sectors.
X The technology-heavy Nasdaq composite fell 0.6% after being down as much as 1.5%, and the small-cap Russell 2000 — which also has a big weighting in techs — slid 1.2%. The S&P 500 and Dow Jones industrial average lost 0.4%.
Volume increased, according to early figures. Selling was broad, with losers topping winners by 9-to-5 on the NYSE and by 7-to-5 on the Nasdaq.
Fear spread on Wall Street on reports that the Senate's version of tax reform would delay business tax cuts by a year, to 2019. Also, House Republicans proposed raising the tax rate charged on accumulated foreign earnings held overseas, which would hurt some multinationals.
Dow component Walt Disney (DIS) slumped 3% to around 99.50 in extended trading after the media company reported adjusted earnings of $1.07 a share, below the estimate of $1.12. Shares rose nearly 2% to 102.78 during the regular session.
Fiber optics, semiconductors, software and mortgage services were among the industry groups that fell more than 2%.
The best-performing industry groups were some of the worst performers over the past six months, including department stores, which rallied on mixed results from Kohl's (KSS) and Macy's (M).
Other retail and energy industry groups were higher.
Square (SQ) made an impressive reversal, closing with a gain of 3% and at a new high after falling as much as 5% intraday. The digital payments company beat Q3 expectations but gave a weak forecast for the fourth quarter.
Morgan Stanley and Citigroup downgraded Square, while Stifle Nicolaus and Royal Bank of Canada raised price targets on the stock.
Alarm.com (ALRM) plunged 14%, slicing through its 50-day moving average in heavy trading. The maker of home security products, which was on the IBD 50 as of the market close, beat quarterly estimates but gave weak guidance.
RELATED:
Four Reasons Why JPMorgan, Morgan Stanley, Other Bank Stocks Keep Falling
