Bank sag halts 7- day market run

NEW YORK — A sevenday winning streak for stocks came to a quiet end Tuesday as bank shares dropped along with bond yields and interest rates.

The Standard & Poor’s 500 index fell 2.91 points, or 0.1 percent, to 2,412.91. The Dow Jones industrial average fell 50.81 points, or 0.2 percent, to 21,029.47. The Nasdaq composite dipped 7 points, or 0.1 percent, to 6,203.19. The Russell 2000 index of smallercompany stocks tumbled 11.05 points, or 0.8 percent, to 1,371.19.

Investors snapped up government bonds and high- yield stocks including phone companies and utilities. As bond prices rose, yields and interest rates fell. That reduced the profits financial institutions can make from mortgages and other types of loans. Energy companies fell to their lowest prices in a year. Technology companies continued to soar while airlines slumped as investors worried that the government could expand a ban on laptops in passenger cabins during international flights, which could affect business travel.

Still, stocks remain close to their record highs. JJ Kinahan, chief market strategist for TD Ameritrade, said he thinks stocks will stay at high levels until more details about the Trump administration’s tax proposals become public.

“Barring unforeseen events, it’s really going to come down to progress and details about the tax plan,” he said. “We’ve had this run up primarily on the fact that earnings have been good.”

However Kinahan said he thinks it’s likely Wall Street will be disappointed with any tax cut package that does pass, since the administration’s proposals will likely be scaled back in Congress.

Bond prices rose. The yield on the 10- year Treasury note fell to 2.21 percent from 2.25 percent late Friday. With interest rates falling, JPMorgan Chase declined $ 1.46, or 1.7 percent, to $ 83.90. Smaller banks fell harder, as Hope Bancorp dropped 67 cents, or 3.7 percent, to $ 17.48 and First Financial Bancorp sank 75 cents, or 2.9 percent to $ 25.05.

Oil prices recovered from an early stumble and finished only slightly lower, but energy companies continued to fall. Hess dropped $ 1.47, or 3.1 percent, to $ 46.67 and Schlumberger shed 85 cents, or 1.2 percent, to $ 68.74. The S& P 500 index of energy companies reached its lowest level in a year. Benchmark U. S. crude lost 14 cents to $ 49.66 a barrel in New York. Brent crude, the international standard, fell 45 cents to $ 51.84 a barrel in London.

International airlines slumped as the government considered expanding a ban on laptops from the passenger cabins of flights to the United States. In March the Trump administration said passengers flying from 10 cities, mostly in the Middle East, had to check all devices larger than a smartphone. On Sunday, Homeland Security Secretary John Kelly said that ban might be expanded to all international flights to and from the U. S.

Delta Air Lines shares fell $ 1.74, or 3.4 percent, to $ 49.06 and United Continental slid $ 2, or 2.5 percent, to $ 79.25. American Airlines retreated 78 cents, or 1.6 percent, to $ 47.96.