Stocks move lower in US; Disney slumps after exec leaves

NEW YORK (AP) — U.S. stocks were falling for a second day in late morning trading Tuesday. Oil prices dropped further and the head of the International Monetary Fund sounded downbeat on the outlook for the world economy. Disney fell after the company's expected successor to CEO Bob Iger announced...

 
              People walk past the Nasdaq MarketSite Tuesday, April 5, 2016, in New York. Stocks are opening broadly lower as investors reacted to a negative assessment of the global economy by the head of the International Monetary Fund. IMF chief Christine Lagarde warned in a speech today that the global recovery remains

NEW YORK (AP) — U.S. stocks were falling for a second day in late morning trading Tuesday. Oil prices dropped further and the head of the International Monetary Fund sounded downbeat on the outlook for the world economy.

Disney fell after the company's expected successor to CEO Bob Iger announced he was leaving the company. Allergan plunged after the Treasury Department announced new tax rules that would make its merger with Pfizer more difficult.

KEEPING SCORE: The Dow Jones industrial average lost 91 points, or 0.5 percent, to 17,647 as of 11:35 a.m. Eastern. The Standard & Poor's 500 index fell 16 points, or 0.8 percent, to 2,050 and the Nasdaq composite fell 25 points, or 0.5 percent, to 4,866.

GLOOMY OUTLOOK: Christine Lagarde, the head of the IMF, warned in a speech that "the recovery remains too slow, too fragile." She said the world economy isn't in a crisis but that slow growth risks becoming ingrained as a "new mediocre." She noted the outlook for the next six months has weakened, suggesting the IMF may be revising its forecasts lower.

GLOBAL DECLINE: European and Asian markets were broadly lower. Japan's benchmark Nikkei 225 index lost 2.4 percent, hit hard by a rise in the yen. South Korea's Kospi fell 0.8 percent and Hong Kong's Hang Seng sank 1.6 percent.

THE TAX MAN COMETH: Allergan fell $43.73, or 16 percent, to $233.80. The U.S. Treasury Department announced new tax rules to discourage what are known as corporate inversions, which is when a U.S. company mergers with a foreign company for tax purposes. Allergan was currently in the process of doing an inversion with U.S. drug giant Pfizer. Shares of Pfizer rose 39 cents, or 1.3 percent, to $31.11.

LET (HIM) GO, LET (HIM) GO: Disney fell $2.02, or 2 percent, to $96.65. The media giant said late Monday that Tom Staggs, the heir apparent to the company's current CEO, would step down from the company. Iger said he plans to retire in 2018.

ENERGY: Benchmark U.S. crude edged up 4 cents to $35.74 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 5 cents to $37.74 a barrel in London.

BONDS, CURRENCIES: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 1.74 percent from 1.76 percent. The euro inched down to $1.1375 from $1.1397, while the dollar fell to 110.52 yen from 111.26 yen.

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