Dow, S&P dip af­ter record highs

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - MAR­KET RE­PORT


NEW YORK — U.S. stocks hardly budged Mon­day as smaller firms and re­tail­ers rose while health care com­pa­nies and banks de­clined. Shares of chem­i­cal and min­ing com­pa­nies rose as the dol­lar weak­ened.

The Stan­dard & Poor’s 500 index fell 0.13 of a point to 2,459.14. The Dow Jones in­dus­trial av­er­age shed 8.02 points to 21,629.72. The Nas­daq com­pos­ite gained 1.97 points to 6,314.43. The Rus­sell 2000 index of smaller-com­pany stocks rose 2.79 points, or 0.2 per­cent, to 1,431.60.

The S&P 500, Dow and Rus­sell 2000 all closed at record highs Fri­day. The Nas­daq has ral­lied al­most 4 per­cent in the last seven days, and it’s re­cov­ered al­most all of its losses from tech­nol­ogy com­pa­nies’ slump in early June.

Pre­cious me­tals rose as the dol­lar, al­ready at its low­est lev­els in al­most a year, weak­ened a bit fur­ther. Bond yields slipped, send­ing banks lower and high-div­i­dend stocks like util­i­ties and house­hold goods com­pa­nies higher.

In­vestors ex­pect an­other solid round of cor­po­rate earn­ings, and they think the Fed­eral Re­serve will be more cau­tious about rais­ing in­ter­est rates be­cause of some weak eco­nomic data, in­clud­ing Fri­day’s re­port on re­tail sales.

“The fun­da­men­tal pic­ture for in­vestors seems to be sort of strangely per­fect, with im­prov­ing fun­da­men­tals and a cen­tral bank with its foot that was only weakly on the gas com­ing off the gas,” said Katie Nixon, chief in­vest­ment of­fi­cer for Wealth Man­age­ment at North­ern Trust.

The dol­lar has been de­clin­ing this year as in­vestors have con­cluded the fed­eral govern­ment isn’t close to any kind of in­fra­struc­ture spend­ing pack­age, which would strengthen the U.S. econ­omy. Mean­while economies in Europe are do­ing bet­ter and in­ter­est rates there are ris­ing, which makes Euro­pean cur­ren­cies stronger.

Gold rose $6.20 to $1,233.70 an ounce. Sil­ver gained 17 cents, or 1 per­cent, to $16.10 an ounce. Cop­per rose 3 cents, or 1.2 per­cent, to $2.72 a pound.

In­vest­ment firm Black­Rock dipped af­ter it re­ported weaker-than-ex­pected re­sults in the sec­ond quar­ter. The com­pany’s earn­ings and rev­enue fell short of Wall Street fore­casts, and its stock de­clined $13.71, or 3.1 per­cent, to $425.63.

Af­ter the end of reg­u­lar trad­ing, Net­flix said it picked up 5.2 mil­lion sub­scribers in the sec­ond quar­ter. That was its big­gest gain ever in what’s usu­ally a slow pe­riod, and the stream­ing video com­pany’s stock jumped 11 per­cent af­ter­mar­ket.

Fi­nan­cial gi­ant Gold­man Sachs, health care prod­ucts maker John­son & John­son and health in­surer Unit­edHealth are sched­uled re­port their sec­ond-quar­ter re­sults early to­day.

Bond prices rose. The yield on the 10-year Trea­sury note fell to 2.31 per­cent from 2.33 per­cent.

A num­ber of com­pa­nies reached deals over the week­end. Di­a­mond pro­ducer Do­min­ion Di­a­mond agreed to be bought by Wash­ing­ton Cos. for $14.25 a share, or about $1.2 bil­lion. The com­pany’s stock gained 59 cents, or 4.4 per­cent, to $14.07.

Church & Dwight, the con­sumer prod­ucts maker be­hind Arm & Ham­mer bak­ing soda and other brands, said it will buy show­er­head and wa­ter-pow­ered tooth­brush maker Wa­ter Pik for $1 bil­lion. Church & Dwight stock rose 71 cents, or 1.3 per­cent, to $53.33.

Bench­mark U.S. crude fell 52 cents, or 1.1 per­cent, to $46.02 a bar­rel in New York. Brent crude, used to price in­ter­na­tional oils, fell 49 cents, or 1 per­cent, to $48.42 a bar­rel in Lon­don.

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