Dow reaches new high as stocks slip

U.S. stocks slipped Wednesday as investors worried about weak retail sales and oil prices sank, although the Dow Jones industrial average rose to a record high. The Federal Reserve raised interest rates for the third time in six months.

The Commerce Department said retail spending decreased in May, which surprised experts. Investors reacted by buying traditionally safer assets such as government bonds and shares of companies that pay high dividends while selling stocks from other industries that depend more on economic growth. Bond yields hit their lowest level of 2017. Oil prices also hit an annual low after the government’s weekly report on oil stockpiles.

Small-company stocks fell more than the rest of the market. That suggests investors are worried about the economy, which could have an outsized effect on smaller, domestically focused companies.

After the federal report on retail spending, shares of video game seller GameStop fell 1.6% to $21.55, and department store chain Kohl’s stock slipped 1% to $37.66.

Bond prices jumped. The yield on the 10-year Treasury note fell to 2.13% from 2.21%. Earlier, the 10-year note hit its lowest level since November.

Among big dividend payers, cereal maker General Mills rose 1% to $58.64 and PepsiCo advanced 0.9% to $117.37. American Water Works rose 1.4% to $81.32.

Mattel sank 2.2% to $22.15 after the toy maker slashed its dividend and announced changes to its board.

Oil futures plunged after the U.S. government said oil supplies shrank only slightly last week while gasoline stockpiles grew. Benchmark U.S. crude dived $1.73, or 3.7%, to settle at $44.73 a barrel in New York. Brent crude, used to price international oils, sank $1.72, or 3.5%, to $47 a barrel in London.

Exxon Mobil shares fell 1.1% to $82.07 and Anadarko Petroleum sank 3.9% to $47.28.

The dollar slid to 109.53 yen from 109.96 yen. The euro rose to $1.1220 from $1.1212.

Biotech drugmaker Biogen fell 3.1% to $253.37 and competitor Alexion Pharmaceuticals jumped 9.3% to $118 after the companies said Biogen Chief Financial Officer Paul Clancy will become Alexion’s CFO at the end of July. Analysts said Wall Street has a lot of respect for Clancy, who has been Biogen’s CFO for 10 years.

Gold rose $7.30 to $1,275.90 an ounce. Silver jumped 37 cents, or 2.2%, to $17.14 an ounce. Copper slipped 2 cents to $2.57 a pound.

Wholesale gasoline sank 7 cents, or 4.5%, to $1.43 a gallon. Heating oil fell 4 cents, or 2.6%, to $1.41 a gallon. Natural gas fell 3 cents, or 1.1%, to $2.93 per 1,000 cubic foot.