According to latest reports, Arconic Inc(NYSE:ARNC) maker of cladding used on Grenfell Tower have plunged in New York.
US-based cladding maker, in the past known as Alcoa, dropped 6% to $24.01 after the company said it would stop selling Reynobond PE cladding for use in high-rises.
Earlier this month fire killed number of residents of the west London tower. Arconic Inc(NYSE:ARNC) said in a statement it was the “right decision because of the inconsistency of building codes across the world”.
Arconic Inc(NYSE:ARNC) supplied Reynobond PE cladding for use in Grenfell regardless of publicly warning the panels were a fire risk for large buildings.
Even as the extent of Arconic’s responsibility still unclear, investors were taking a “sell now and ask questions later” approach, said Tim Ghriskey, chief investment officer at Solaris Asset Management in New York.
Meanwhile Wall Street had a jaded start to the week, with the Dow Jones finishing just 0.1% higher at 21,409.5 points, while the wider S&P 500 index was almost flat at 2,439.07 points.
In addition the technology-focused Nasdaq index suffered, dropping 0.4% to 6,247.1 points as Amazon, Microsoft and Facebook each dropped 1%, and Google’s owner, Alphabet, shed 1.4%.
Avis Budget rose 14.2% after an announcement of an agreement to offer support and maintenance for Waymo, a subsidiary of Alphabet, for the self-driving cars it is trying on Arizona roads. Then Hertz Global Holdings, surged 13.6% after news it is testing self-driving technology under an accord with Apple.
Moreover retail giants, including companies that dropped following Amazon’s agreement to takeover Whole Foods did well with Wal-Mart rose 0.9% and Target adding 1.4%.
Media shares also surged, with Disney rose 1.2%, Twenty-First Century Fox surged 3.1% and Viacom increasing 2.9%.