Losses snap Dow’s winning streak
Losses in health care and consumer-focused companies pulled U. S. stocks broadly lower Tuesday, snapping a 10-day winning streak for the Dow Jones industrial average.
The Standard & Poor’s 500 index fell 5.99 points, or 0.2 percent, to 2,474.92. The Dow slid 33.08 points, or 0.2 percent, to 22,085.34. The S&P 500 and Dow were both coming off record highs.
The Nasdaq composite fell 13.31 points, or 0.2 percent, to 6,370.46. The Russell 2000 index of smaller- company stocks gave up 4.02 points, or 0.3 percent, to 1,410.15.
Bond prices were little changed. The yield on the 10-year Treasury note held steady at 2.26 percent.
Energy stocks fell along with the price of crude oil. Only utilities sector stocks eked out a gain on a day of mostly listless trading as investors kept an eye on the latest company earnings and geopolitical news.
The market slide accelerated slightly in the last halfhour of trading as President Donald Trump denounced North Korea’s nuclear program.
The remarks followed a new report asserting that U.S. intelligence has assessed that Pyongyang has successfully produced a nuclear warhead that can fit inside its missiles.
“That may have weighed a little bit” on markets, said Phil Guarco, global investment specialist at J.P. Morgan Private Bank.
The market indexes wavered between small gains and losses for much of the morning, then veered lower by afternoon. The slide deepened after Trump’s remarks on North Korea aired.
The VIX, a measure of how much volatility investors expect in stocks, jumped 10.4 percent.
Beyond geopolitical concerns, investors continued to size up company earnings reports.
Avis Budget Group Inc. slumped 9.9 percent after the car rental company cut its guidance following a weak second quarter. The stock fell $3.30 to $30.09.
Shares of SeaWorld Entertainment Inc. slid 6.2 percent after the theme park operator reported second-quarter revenue that fell short of Wall Street’s expectations. The stock fell 85 cents to $12.76.
Traders snapped up shares in companies that delivered strong quarterly results.
Michael Kors Holdings Ltd. climbed 21.5 percent after the luxury handbag and apparel designer and retailer’s latest quarterly results beat analysts’ forecasts as sales improved. The stock was the biggest gainer in the S&P 500, rising $8.02 to $45.25.
Ralph Lauren Corp. shares gained $10.38, or 13.3 percent, to $88.53, while peer-to-peer loan company LendingClub Corp. added 99 cents, or 18.1 percent, to $6.45.
Shares of health care equipment and services company Henry Schein Inc. declined amid a broader slide by health care stocks. Its shares slid $9.77, or 5.3 percent, to $174.02.
Benchmark U.S. crude fell 22 cents to $49.17 a barrel on the New York Mercantile Exchange. Brent crude, the international standard, lost 23 cents to $52.14 a barrel in London.
Gold fell $2.10 to $1,262.60 an ounce. Silver gained 14 cents to $ 16.39 an ounce. Copper rose 4 cents to $2.94 a pound.
Markets overseas were mixed Tuesday.
In Europe, Germany’s DAX rose 0.3 percent, while France’s CAC 40 added 0.2 percent. Britain’s FTSE 100 added 0.1 percent.