Stocks Closed Lower on European Bank, Fed Concerns

U.S. stocks closed lower on Thursday as investors worried about European banks and talk of a December rate increase by the Federal Reserve. The Dow Jones Industrial Average shed 195.79 points, or 1.07%, to 18,143.45. The S&P 500 fell 20.24 points, or 0.93%, to 2,151.13. The Nasdaq Composite dropped 49.39 points, or 0.93%, to 5,269.15.

Some hedge-fund clients of Deutsche Bank AG are increasingly concerned about their exposure to the German lender, prompting them to pull assets and bank executives to step up their broader reassurances about the bank’s stability, according to people close to clients and the bank.

John Stumpf, chief executive of Wells Fargo, testified before the House Financial Services Committee on Thursday regarding the bank’s unauthorized customer accounts.

Qualcomm Inc. is in talks to acquire NXP Semiconductors NV, a deal that would likely be valued at over $30 billion and represent the latest merger in a rapidly consolidating semiconductor industry.

PepsiCo Inc. raised its 2016 profit outlook after revenue surged in key overseas markets like China and as the U.S. beverage business picked up steam in the third quarter. PepsiCo now expects 2016 earnings per share to rise to $4.78 in 2016 from $4.57 last year, up from its July estimate of $4.71.