Tech rout slams stocks as oil gains

The biggest technology shares led a retreat in stocks as investors showed signs of exhaustion with the sector. Government bonds declined and oil rallied.

The Nasdaq Composite Index sank 1.4 percent as the gauge posted its biggest three-day loss since March. The FANG cohort of tech megacaps tumbled almost 3 percent, led by Netflix Inc., leaving the group down more than 9 percent since Facebook Inc.’s disappointing earnings results last week.

The euro strengthened and the dollar dropped. U.S. oil futures climbed past $70 a barrel for the first time in more than a week as a weaker greenback boosted the appeal of commodities and concerns over supply disruptions persisted.

Concern that tech shares have become overvalued are hanging over the market as bellwether Apple Inc. prepares to report earnings Tuesday. Equity strategists are telling clients to allocate more defensively, with Morgan Stanley’s Michael Wilson saying the sector is showing signs of “exhaustion” after months of outperformance.

7-Eleven unfair, store owners say

The tensions between 7-Eleven and its store owners have been simmering for years. In the early 2000s, the company and franchisees split profits equally. But 7-Eleven has taken an increasingly bigger cut, franchisees say, and is now saying that store owners who do not renew their contracts by the end of 2018 could see their profits shrink further. Franchisees say they have no ability to negotiate with 7-Eleven. Many of them must decide whether to sign the new deal or simply walk away.

CBS board takes no action on CEO

On Monday, three days after The New Yorker published a report detailing allegations of sexual harassment against CBS Chief Executive Leslie Moonves, the company’s board met but took no immediate action. CBS said its board was “in the process of selecting outside counsel to conduct an independent investigation,” but the board could face recriminations from those who believe it should have taken immediate action.

Record label plans partial sale

Universal Music Group’s parent company plans to sell up to 50 percent of the venerable record label, looking for a major financial windfall after the rapid rise of online streaming helped revive the once moribund recorded music industry. Vivendi SA, the French media conglomerate that owns Universal Music, said Monday it would engage investment banks to sell shares to “one or more strategic partners, in order to extract the highest value” for the label, known for such Grammy-winning artists as Sam Smith and Kendrick Lamar.

— From wire reports