Friday's early afternoon trade: stocks slump on global worries, J&J's report

US stocks slumped on Friday as weak data from China and Europe stoked fears of a global economic slowdown, while Johnson & Johnson slid after Reuters reported the company knew for decades that asbestos lurked in its Baby Powder. The report, which J&J has disputed, sent the company's shares tumbling 8.31 percent in heavy volume. The stock was easily the biggest drag on the S&P 500 and the Dow Industrials.
The pharma major also pulled down the S&P healthcare index 2.78 percent, making it the biggest decliner among the 11 major sectors. The technology index, which includes a number of companies with global operations, especially China, dropped 1.74 percent. Apple Inc fell 2.45 percent, with some reports citing a top analyst slashing iPhone sales estimate for the decline.
Sentiment was weak from the start of trading after China reported weak monthly retail sales growth and industrial output numbers, with disappointing economic data from Euro zone, France and Germany souring the mood. "The root of this decline is due to the global economic worries plus a plunge in Johnson & Johnson shares," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"We need a true breakthrough in US-China trade talks. Any agreement at this point would alleviate fears of global economies sinking further and that would diminish this high volatility in the market." The market has struggled this week with choppy trading and has failed to hold on to opening levels in magnitude or direction on concerns ranging from trade talks, interest rates, a flattening US Treasury yield curve to uncertainty over the shape of Brexit.
The consumer staples and energy sectors fell more than 1.5 percent, while consumer discretionary and industrials were down over 1 percent. At 12:53 p.m. ET, the Dow Jones Industrial Average was down 411.99 points, or 1.67 percent, at 24,185.39. The S&P 500 was down 37.10 points, or 1.40 percent, at 2,613.44 and the Nasdaq Composite was down 98.08 points, or 1.39 percent, at 6,972.26.