US stocks moved lower for a third straight day Wednesday, following a 4 percent drop in Japan’s Nikkei 225 index and declines in several other foreign markets.
About 40 minutes into trade, the Dow Jones Industrial Average dropped 84.78 (0.55 percent) to 15,433.96.
The broad-based S&P 500 fell 10.40 (0.61 percent) to 1,686.97, while the tech-rich Nasdaq Composite Index declined 22.27 (0.61 percent) to 3,643.50.
US equity markets have declined modestly the last two days amid more indications that the US Federal Reserve could trim back its bond-buying program in the coming months.
The plunge in Japanese stocks came during a two-day meeting of the Bank of Japan and as the yen rose against the dollar. Indices in Britain and Germany were also lower Wednesday.
Dow component Walt Disney Company fell 2.6 percent after signalling that it would incur a $160-$190 million charge in the next quarter due to the flop of its expensive “Lone Ranger” film.
Time Warner, another US media giant, jumped 2.1 percent after besting earnings expectations on strong earnings on movie blockbusters “Man of Steel” and “The Great Gatsby.” The company also raised its full-year profit forecast.
Meanwhile 21st Century Fox, reporting for the first time since being hived off from Rupert Murdoch’s News Corp publishing assets, gained 1.4 percent after reporting a 2013 profit of $7.1 billion, up from $1.2 billion in 2012, on strength in its cable television offerings.
Technology company AOL tacked on 2.7 percent after announcing a $405 million acquisition of video advertising firm Adap.tv.
Dow component Bank of America fell 1.5 percent after the Department of Justice sued the banking giant for alleged fraud in issuing $850 million in mortgage securities.
Natural gas processing and storage firm Oneok dropped 3.1 percent to $49.90 after pricing a public offering of 10 million shares at $49.61 a share. The money will go for general purposes and to repay debt.
Bond prices rose. The yield on the 10-year US Treasury slipped to 2.63 percent from 2.64 percent Tuesday, while the 30-year dropped to 3.71 percent from 3.73 percent. Bond prices and yields move inversely.
US stocks lower after Nikkei plunges
