Stocks Opened Lower On Global Economy Worries

U.S. stocks opened lower on Wednesday, as worries about the impact of the U.K.’s vote to quit the European Union continued to rattle global economy. Investors fled to the perceived safety of government bonds, pushing Treasury yields to all-time lows. The Dow Jones Industrial Average lately lost 72.80 points, or 0.41%, to 17,767.82. The S&P 500 fell 10.13 points, or 0.49%, to 2,078.42. The Nasdaq Composite lost 23.43 points, or 0.49%, to 4,799.48.

Fear and uncertainty about the global economy are leading investors to embrace the relative safety of U.S. government debt and slashing yields to record lows. Interest paid on the 10-year Treasury note reached 1.34 percent early Wednesday, just below the previous record set in 2012.

Americans snatched up the chance to refinance as rates tumbled after the U.K. referendum, according to data out Wednesday. Refinancings soared 21% in the week ending July 1, the Mortgage Bankers Association said.

The U.S. trade deficit climbed in May as a surge in imports of Chinese-made cellphones and computers pushed the politically sensitive imbalance with China to the highest level in six months. The trade deficit rose to $41.1 billion in May compared to April’s $37.4 billion, the Commerce Department reported Wednesday.

Oil prices dropped for a second straight day on Wednesday, as worries over the global economy after the Brexit vote fueled concerns about energy demand. Crude oil for August delivery fell 54 cents, or 1.1%, to $46.09 a barrel. Brent oil for September gave up 62 cents, or 1.3%, to $47.34 a barrel.

Walgreens Boots Alliance reported improving U.S. pharmacy sales and widening profits as it cuts costs in its U.S. drugstore division. Walgreens said its fiscal third quarter earnings fell to $1.1 billion, or $1.01 per share. That compares with $1.3 billion, or $1.18 per share in the same quarter in 2015. Revenues were up 2.4 percent to $29.5 billion.

Delta Air Lines warned that a key revenue figure declined more than expected in the second quarter. Delta said that revenue for each seat flown one mile dropped 5% in the second quarter.