Dow’s 10-day win streak ends
Losses in healthcare and consumer-focused companies pulled U.S. stocks broadly lower Tuesday, snapping a 10-day winning streak for the Dow Jones industrial average.
Energy stocks fell along with the price of crude oil. Only the utilities sector eked out a gain on a day of mostly listless trading.
Bond prices were little changed. The yield on the 10year Treasury note held steady at 2.26%.
The market indexes wavered between small gains and losses for the first few hours of trading, then veered lower. The slide deepened after President Trump denounced North Korea’s nuclear program.
At a briefing on opioid addiction, Trump warned North Korea not to make any more threats against the United States, adding that North Korea would be “met with fire and fury like the world has never seen.”
The remarks followed a new report asserting that U.S. intelligence has assessed that Pyongyang has produced a nuclear warhead that can fit in its missiles.
The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4%.
Investors also continued to size up company earnings reports.
Avis Budget Group slumped 9.9% to $30.09 after the car rental company cut its guidance following a weak second quarter.
SeaWorld Entertainment slid 6.2% to $12.76 after the theme park operator reported second-quarter revenue that fell short of Wall Street’s expectations.
Michael Kors soared 21.5% to $45.25 after the luxury handbag and apparel firm’s sales improved and its latest quarterly results beat analysts’ forecasts. The stock was the biggest gainer in the S&P 500.
Ralph Lauren climbed 13.3% to $88.53 while peer-topeer loan company Lending-Club leaped 18.1% to $6.45 after reporting results that pleased investors. Construction giant Aecom climbed 8% to $33.85.
Healthcare equipment and services company Henry Schein declined 5.3% to $174.02 amid a broader slide by healthcare stocks.
Depomed plunged 33.4% to $6.15 after the drugmaker cut its revenue forecast for the year as scrutiny of opioid pain medications affects its sales.
Benchmark U.S. crude fell 22 cents to $49.17 a barrel in New York. Brent crude, the international standard, fell 23 cents to $52.14 a barrel in London.
In other energy futures trading, wholesale gasoline slipped 1 cent to $1.62 a gallon. Heating oil fell 1 cent to $1.63 a gallon. Natural gas rose 2 cents to $2.82 per 1,000 cubic feet.
Gold fell $2.10 to $1,262.60 an ounce. Silver rose 14 cents to $16.39 an ounce. Copper rose 4 cents to $2.94 a pound.
The dollar fell to 110.48 yen from 110.72 yen. The euro fell to $1.1752 from $1.1793.