China slump, higher bond yields weigh on markets
More uncertainty about China's economy and rising bond yields led to a broad sell-off in stocks Monday, leaving the market down 5.7 percent from its all-time high last month.
It's the first pullback of 5 percent or more since November.
U.S. trading started with a slump Monday. The market recovered much of its loss, then fell back again. By the close of trading, the big stock indexes were clinging to modest gains for the second quarter. The last trading day of the quarter is Friday.
The yield on the 10-year note was unchanged from late Friday at 2.54 percent. Earlier in the day it was at 2.67, its highest level in almost two years. The yield has surged from its 2013 low of 1.63 percent on May 3.
Before Wall Street opened for trading on Monday, Asian markets were already sharply lower, led by a 5 percent plunge in China's Shanghai Composite Index. That was the index's biggest loss in four years.
The decline was prompted by a government crackdown on off-balance-sheet lending, which made investors worry about China's economic growth.
The selling spread to Europe.
Smithfield drops Paula Deen as company spokeswoman
Paula Deen lost another part of her empire on Monday: Smithfield Foods said it is dropping her as a spokeswoman, days after the Food Network said it would not renew the celebrity cook's contract in the wake of revelations she used racial slurs in the past.
Smithfield, which also sold Paula Deen-branded hams, said it "condemns the use of offensive and discriminatory language and behavior of any kind. Therefore, we are terminating our partnership with Paula Deen."
QVC said it was reviewing its deal with Paula Deen Enterprises to sell the star's cookbooks and cookware. "QVC shares the concerns being raised around the unfortunate Paula Deen situation," QVC said. "We are closely monitoring these events and the ongoing litigation. We are reviewing our business relationship with Ms. Deen, and in the meantime, we have no immediate plans to have her appear on QVC."
Several retailers that sell Paula Deen cookware, including Sears and Target, said they were taking a wait-and-see approach.
New Samsung tablets mimic its Galaxy smartphones
Samsung is expanding its lineup of tablet computers and making them look more like its Galaxy smartphones, as it hopes to translate its success in phones to the tablet market, where Apple is dominant.
Samsung Electronics Co., the second-largest maker of tablets after Apple, said Monday that it is putting three new tablets in the Galaxy Tab 3 series on sale in the U.S. on July 7. The cheapest, a $199 device, will have a screen that measures 7 inches diagonally. An 8-inch model will go for $299 and a 10-inch one for $399.
The Associated Press