Stocks edge up as banks decline
U.S. stocks hardly moved Tuesday as investors were slow to dip a toe back into the market, although energy companies climbed with the prices of oil and natural gas. Banks fell.
Energy firms rose the most. Companies that make drinks, packaged foods and other household items also rose. Retailers and department stores slumped.
That came a day after automakers reported weak sales, which raised concerns about sales of other goods.
This week investors will pore over reports on the U.S. economy, including Friday’s monthly jobs report. Trade pacts will be in focus as President Trump and Chinese President Xi Jinping meet Thursday and Friday.
Ralph Lauren dropped 4.5% to $77.74 after it said it would close stores and cut jobs in an effort to save money. Urban Outfitters slid 3.1% to $22.49 after it said sales at older stores had fallen over the last two months.
Other retailers also lost ground. Department store Nordstrom sank 5.5% to $43.92 and L Brands, the owner of Victoria’s Secret, declined 4.4% to $43.77. But e-commerce giant Amazon rose 1.7% to $906.83. Amazon is up 21% this year.
Handbag and accessories maker Kate Spade slumped 14.6% to $19.46 after Reuters said the company would take more time to negotiate a possible sale. The report cited anonymous sources and said that if Kate Spade were sold to a buyer such as Michael Kors or Coach, it probably would be for less than the company’s recent valuation of $2.9 billion.
Benchmark U.S. crude rose 1.6% to $51.03 a barrel. Brent crude, used to price international oils, climbed 2% to $54.17 a barrel. Wholesale gasoline rose 3 cents to $1.72 a gallon. Heating oil rose 3 cents to $1.59 a gallon.
Natural gas jumped 4.6% to $3.27 per 1,000 cubic feet. Southwestern Energy rose 8.9% to $8.59, and Range Resources rose 4.2% to $29.76.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.36% from 2.33%.
Banks fell for the second day in a row after Monday’s sharp drop in bond yields. Lower bond yields force interest rates on loans lower, cutting into banks’ profits.
The Commerce Department said U.S. factory orders kept growing in February thanks to greater demand for commercial aircraft. Boeing said it would sell $3 billion in aircraft to an Iranian airline, and its stock rose 1.2% to $178.70.
Manufacturers have been recovering recently from a rough patch caused by weak economies overseas and the strong dollar, which made U.S. goods costlier.
Gold rose $4.40 to $1,258.40 an ounce. Silver rose 11 cents to $18.32 an ounce. Copper rose 1 cent to $2.61 a pound.
The dollar fell to 110.65 yen from 110.96 yen. The euro rose to $1.0670 from $1.0665.