Losses snap Dow’s win­ning streak

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - ALEX VEIGA

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.

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