Turbulent trading week
concludes with big loss
Wall Street capped a turbulent week of trading Friday with the biggest weekly loss since March as traders fret over rising trade tensions between Washington and Beijing and signals of slower economic growth.
The latest wave of selling erased more than 550 points from the Dow Jones Industrial Average, bringing its three-day loss to more than 1,400. For the week, major indexes are down more than 4 percent.
Worries that the testy U.S.-China trade dispute and higher interest rates will slow the economy has made investors uneasy, leading to volatile swings in the market from one day to the next.
The S&P 500 index fell 62.87 points, or 2.3 percent, to 2,633.08. The index has ended lower three out of the last four weeks. The Dow dropped 558.72 points, or 2.2 percent, to 24,388.95.
The Nasdaq composite slid 219.01 points, or 3 percent, to 6,969.25. The Russell 2000 index of small-company stocks gave up 29.32 points, or 2 percent, to 1,448.09.
The S&P 500 and Dow are now in the red for the year again. The Nasdaq was holding on to a modest gain.
increases in October
Americans boosted their borrowing by 7.73 percent in October from a year ago, the largest increase in nearly a year as consumer spending has helped fuel U.S. economic growth.
The Federal Reserve said Friday that consumer borrowing rose by a seasonally adjusted $25.3 billion in October to a total of $3.96 trillion. The October increase was the most since November 2017 and more than double the gain in the prior month.
Much of the increase was due a 10.75 percent jump in revolving credit, a category that includes credit cards. Nonrevolving credit — which includes auto loans and student debt — rose 6.67 percent.
Economists and investors monitor consumer borrowing to judge the willingness of people to take on debt to finance their purchases. Higher debt can suggest that people are confident in their ability to repay their loans.
Arby's parent company
to acquire Sonic chain
Shareholders have approved the sale of Oklahoma-based drive-in burger chain Sonic to the parent company of Arby's in a $2.3 billion merger.
The Oklahoma City Journal Record reported that Sonic shareholders approved the pending agreement with Inspire Brands Inc. on Thursday.
The company's investors voted on two proposals. The first was to authorize the merger and the other was to compensate Sonic's executive officers in connection with the merger.
Shareholders will be paid $43.50 per share in cash for the sale. Sonic will no longer be traded publicly.
Sonic CEO Cliff Hudson says getting approached for the deal was unanticipated, but that he was proud of building a profitable company.
Hudson says he plans to serve as a senior consultant until March 2019 while the business shifts into new ownership.