NEW YORK (AP) — U.S. stocks are falling Thursday morning as the market continues a sell-off that began late the previous day. Big losses for insurer AIG are hurting financial stocks while Cardinal Health tumbles and takes the health care sector lower. Tesla is skidding after the electric car maker posted another big loss, and Wall Street reacted negatively to comments by CEO Elon Musk.
KEEPING SCORE: The S&P 500 index dropped 14 points, or 0.6 percent, to 2,620 as of 10 a.m. Eastern time. The Dow Jones industrial average fell 166 points, or 0.7 percent, to 23,758. The Nasdaq composite fell 29 points, or 0.4 percent, to 7,071. The Russell 2000 index of smaller-company stocks slid 5 points, or 0.4 percent, to 1,549.
QUEASY RESULTS: American International Group dropped 85 percent to .17 after its first-quarter profit fell short of analysts’ estimates. Cardinal Health, which distributes prescription drugs, also had a smaller-than-expected profit and slashed its forecast for the rest of the year. Cardinal said its Cordis cardiovascular products business ran into supply chain problems and also paid a higher expected tax rate. The stock gave up 15.7 percent to .50.
HITTING THE SKIDS: Tesla tumbled 6.1 percent to .89 after the electric car maker said it lost million in the first quarter as it is still struggling to produce more of its lower-cost Model 3 sedan. The company has .5 billion in long-term debt and some experts are wondering if Tesla will be able to pay all of its bills because of the repeated losses. The company said it plans to defer some spending.
Musk appeared to make matters worse on the company’s conference call, as he was testy with analysts at times and dismissed some questions as “boring” and “not cool.” JPMorgan Chase analyst Ryan Brinkman said the call was “truly bizarre.”
EAT UP: Kraft Heinz posted a bigger profit than analysts expected despite weaker sales, and the Oreo maker’s stock gained 2.7 percent to .67. Cereal and Pop Tart maker Kellogg rose 2.4 percent after its profit and sales topped analyst projections.
LOSING THE BEAT: Spotify sank after reporting quarterly results for the first time since becoming a publicly traded company in early April. The music streaming service had 75 million subscribers at the end of March, but investors may been hoping for stronger growth, as Spotify said it expects to have 79 million to 83 million subscribers by the end of June. Spotify fell 10 percent to .07, giving up most of the gains it’s made since its debut.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.95 percent from 2.97 percent.
ENERGY: Benchmark U.S. crude fell 0.7 percent to .45 barrel in New York while Brent crude, the international standard, lost 1 percent to .62 per barrel in London.
CURRENCIES: The dollar fell to 109.31 yen from 109.73 yen. The euro sipped to .1976 from .1988.
OVERSEAS: France’s CAC 40 shed 0.1 percent while Germany’s DAX fell 0.4 percent. The British FTSE 100 dipped 0.2 percent. Hong Kong’s benchmark Hang Seng index dropped 1.2 percent and South Korea’s Kospi dipped 0.7 percent. Japanese markets were closed for a holiday.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP . His work can be found at https://apnews.com/search/marley%20jay