Stocks fall for 3rd day as gun makers climb, Fed weighs heavily |

Stocks fall for 3rd day as gun makers climb, Fed weighs heavily

The Associated Press

NEW YORK — U.S. and global stocks fell for a third day on Monday as concerned investors waited to see what the Federal Reserve would do with interest rates later this week and anxiously awaited the fate of Britain’s membership in the European Union.

LinkedIn shares jumped after Microsoft announced plans to buy the company.

Firearms makers climbed as investors wondered if the mass shooting in Orlando on Sunday will lead to greater sales.

Sturm Ruger advanced $4.88, or 8.5 percent, to $62.29, its largest one-day gain in more than a year, and Smith & Wesson rose $1.47, or 6.9 percent, to $22.88.

Similar gains have been recorded after other mass shootings, such as the one last year in San Bernardino, Calif. The prospect of additional background checks and other regulations often boosts demand for guns.

The Dow Jones industrial average lost 132.86 points, or 0.7 percent, to 17,732.48. The Standard & Poor’s 500 index fell 17.01 points, or 0.8 percent, to 2,079.06, and the Nasdaq composite dropped 46.11 points, or 0.9 percent, to 4,848.44.

The Federal Reserve had been expected to start raising interest rates, but now appears likely to remain in a wait-and-see mode. The central bank’s two-day meeting will start Tuesday, with a decision on interest rates Wednesday afternoon. Fed Chair Janet Yellen is scheduled to hold a news conference after the interest rate decision.

While last month many investors were betting that the Fed would raise interest rates, the two most recent monthly jobs reports in the U.S. have put a damper on those expectations.

Investors’ lack of confidence that the Fed will raise rates could be seen in bonds and the U.S. dollar. The yield on the 10-year U.S. Treasury note fell to 1.61 percent from 1.64 percent on Friday, its lowest yield this year. The dollar, while off its lows, is still also trading near its lows for the year against other major currencies.

Combined with the weight of the Fed decision, stocks, particularly in Europe, remain under pressure on investor concerns over whether Britain will choose to remain in the European Union in a June 23 referendum. Recent polls have shown the race is tight, with some polls showing a majority of British voters are in favor of exiting the EU, a development known informally as “Brexit.”

“This week’s Fed meeting feels like a bit of a sideshow, given the focus on Brexit and the market’s appropriate belief that the Fed is unlikely to (raise) ahead of such an … event,” said John Briggs, head of strategy for the Americas at RBS, in a note to investors.

Germany’s DAX closed down 1.8 percent, France’s CAC-40 fell 1.9 percent and the U.K.’s FTSE 100 fell 1.2 percent.

Shares of professional social networking site LinkedIn soared $61.13, or 47 percent, to $192.21 after Microsoft announced it was purchasing the company for $26.2 billion in cash. Shares of Microsoft fell $1.34, or 2.6 percent, to $50.14 after the deal was announced.

Twitter shares jumped as well, up 53 cents, or 4 percent, to $14.55 on speculation that LinkedIn’s buyout could mean better buyout prospects for that social media service.

Security software company Symantec jumped 91 cents, or 5 percent, to $18.21 after the company said it would purchase another security company, Blue Coat, for $4.6 billion. Blue Coat had plans to go public later this year. Symantec was the biggest gainer in the S&P 500.

In currencies, the dollar fell to 106.21 from 106.79 yen. The dollar dipped slightly against the euro to $1.1291 and rose slightly against the British pound to $1.423.

TribLIVE commenting policy

You are solely responsible for your comments and by using you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.