US STOCKS-Wall St drops again, but tech bounce helps limit losses

Reuters

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    * Indexes down: Dow 0.54 pct, S&P 0.64 pct, Nasdaq 0.03 pct
    * CPI and core CPI rise less than expected in September
    * Tech stock bounce back, helping limit losses
    * Utilities, health and financials drop more than 1 pct

 (Adds comments, updates prices)
    By Shreyashi   Sanyal
    Oct 11 (Reuters) - Wall Street dropped on Thursday but the
losses were less severe than the brutal sell-off in the previous
session as a bounce in technology stocks helped limit losses.
    Nine of the 11 S&P major sectors were lower, led by energy
and health stocks. Technology companies, which led the sell-off
on Wednesday, managed to post slight gains.
    The stock market is caught amidst a storm of worries ranging
from the impact of trade tensions on corporate profits to
Treasury yields at multi-year highs and, more recently,
Hurricane Michael making landfall in Florida.
    While stocks had coped well with rising trade tensions
between the United States and China over the past few months,
the sharp rise in bond yields earlier this month, accompanied by
hawkish comments from Federal Reserve officials, proved to be a
tipping point that triggered the sell-off on Wall Street.
    A smaller-than-anticipated rise in consumer prices, which
eased some fears of inflation pressures rising, helped stocks
take a bit of a breather around the open, but the slide soon
resumed.
    "Nobody is talking about inflation anymore because they are
just shell-shocked from what happened yesterday," said Michael
Antonelli, managing director, institutional sales trading at
Robert W. Baird in Milwaukee.
    "Investors are just wary about the markets right now and no
one is willing to stick their neck out after yesterday. At this
point of time it's risk selling across the board."
    Still, the high-growth technology sector  .SPLRCT  was up
0.4 percent, coming off a 4.8 percent slide on Wednesday. Gains
were led by Microsoft  MSFT.O , up 1.9 percent.
    "The growth stocks, which are the path leaders, typically
bounce from the bottom first," said Tom Plumb, portfolio manager
of the Plumb Balanced Fund in Wisconsin.
    At 12:07 p.m. ET, the Dow Jones Industrial Average  .DJI 
was down 137.02 points, or 0.54 percent, at 25,461.72, the S&P
500  .SPX  was down 17.76 points, or 0.64 percent, at 2,767.92
and the Nasdaq Composite  .IXIC  was down 2.25 points, or 0.03
percent, at 7,419.80.
    Energy stocks  .SPNY  fell 1.77 percent as oil prices hit
two-week lows after an industry report showed U.S. crude
inventories rose more than expected.  O/R 
    The defensive utilities  .SPLRCU  and real estate  .SPLRCR 
sectors were both down more than 1 percent, as were the health
 .SPXHC  and financial  .SPSY  sectors.
    J.P.Morgan  JPM.N , Citigroup  C.N  and Wells Fargo  WFC.N ,
which report quarterly results on Friday, were between 0.2
percent and 1.7 percent lower.
    The bright spots included Delta Air Lines  DAL.N , which
rose 3.7 percent after it forecast returning to margin growth
next year and posted a better-than-estimated quarterly profit on
strong demand and tight cost controls.  urn:newsml:reuters.com:*:nL4N1WR48L
    Declining issues outnumbered advancers for a 2.00-to-1 ratio
on the NYSE and a 1.28-to-1 ratio on the Nasdaq.
    The S&P index recorded no new 52-week highs and 47 new lows,
while the Nasdaq recorded five new highs and 206 new lows.

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak
Dasgupta and Saumyadeb Chakrabarty)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;
Reuters Messaging:
Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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