Tech Firms Lead US Stock Index Slide 10/16 16:19
A day of mostly listless trading on Wall Street ended Wednesday with modest
losses as the stock market gave back some of its gains from the day before.
(AP) -- A day of mostly listless trading on Wall Street ended Wednesday with
modest losses as the stock market gave back some of its gains from the day
Technology stocks accounted for most of the selling, which lost some of its
momentum toward the end of the day. Energy companies also fell. Financial
sector stocks declined as bond yields, which are used to set interest rates on
loans, headed lower.
The modest losses came as investors weighed mixed data on the economy and
the latest batch of corporate earnings reports.
A move on Tuesday by the House of Representatives to show support for the
pro-democracy protests in Hong Kong appeared to dim some investor optimism
about the prospects for progress in the latest trade talks between the U.S. and
"We're in the height of earnings season and the results that we got last
night, as well as this morning, I would characterize as better-than-feared,"
said Cayman Wills, global head of equities at J.P. Morgan Private Bank. "On the
other side of the pendulum, you have this development on U.S.-China trade
relations and the pro-democracy position that Congress took skews slightly
The S&P 500 index lost 5.99 points, or 0.2%, to 2,989.69. The Dow Jones
Industrial Average dropped 22.82 points, or 0.1%, to 27,001.98. The Nasdaq fell
24.52 points, or 0.3%, to 8,124.18. The Russell 2000 index of smaller stocks
eked out a tiny gain, adding 1.76 points, or 0.1%, at 1,525.06.
Advancers outweighed decliners on the New York Stock Exchange. The benchmark
S&P 500 index remains 1.2% below its all-time high set in July.
Stocks got off to a downbeat start Wednesday as investors sized up a mixed
batch of economic data and company earnings reports.
The Commerce Department said U.S. retail sales fell in September by the
largest amount in seven months. That stoked worries that consumers are pulling
back on spending.
A slowdown in retail sales is concerning because consumer spending is a key
growth driver for the U.S. economy, which has slowed this year as the costly
trade war between the U.S. and China has escalated.
On Friday, the U.S. agreed to suspend a planned hike in tariffs on $250
billion of Chinese goods that had been set to kick in Tuesday. Beijing,
meanwhile, agreed to buy $40 billion to $50 billion in U.S. farm products.
While both sides still have many issues to work out, the conciliatory steps
announced on Friday suggested the trade talks were making some progress. The
three bills passed in the House on Tuesday in support of the pro-democracy
protests in Hong Kong gave investors a new reason to be less optimistic.
Investors are worried the action by the House could blunt the recent
positive momentum in the trade negotiation, Wills said. "It might take it a
Stocks are on track to notch gains this week, in part because investors have
mostly set aside concerns over the trade negotiations in favor of focusing on
corporate earnings for the third quarter. Stocks rallied on Tuesday following
surprisingly good earnings and hopeful forecasts.
Even so, company earnings for the third quarter are expected to be down by
nearly 5%, according to FactSet.
Traders bid up shares in United Airlines 2.1% and Bank of America 1.5%
Wednesday after the companies turned in third-quarter results that topped Wall
A mixed third-quarter report card weighed on insurer Progressive, which
Microsoft and Adobe were among the big decliners in the technology sector.
Microsoft slid 0.8% and Adobe slid 2.4%.
Companies that rely on consumer spending led the gainers. Retailer Advance
Auto Parts picked up 1.9%.
Homebuilders marched broadly higher after an industry survey showed
builders' confidence increased to the highest level since February 2018. Beazer
Homes USA gained 3.6%.
General Motors rose 1.1% after the auto company and the United Auto Workers
reached a tentative deal.
A potential settlement in the opioid epidemic involving some of the nation's
largest drug distributors helped lift their shares. McKesson rose 4.8%,
AmerisourceBergen climbed 3.4% and Cardinal Health added 2.4%.
Bond prices rose. The yield on the 10-year Treasury fell to 1.75% from 1.77%
Benchmark crude oil rose 55 cents to settle at $53.36 a barrel. Brent crude
oil, the international standard, gained 68 cents to close at $59.42 a barrel.
Wholesale gasoline rose 1 cent to $1.62 per gallon. Heating oil climbed 3 cents
to $1.94 per gallon. Natural gas fell 4 cents to $2.30 per 1,000 cubic feet.
Gold rose $10.40 to $1,488.00 per ounce, silver rose 4 cents to $17.35 per
ounce and copper fell 2 cents to $2.58 per pound.
The dollar fell to 108.77 Japanese yen from 108.84 yen on Tuesday. The euro
strengthened to $1.1072 from $1.1035.
Major stock indexes in Europe closed mostly lower.