Stocks take first loss of the week
Losses by technology and consumer products companies weighed on U.S. stocks Thursday, snapping a three-day winning streak for the market.
Banks bucked the trend, rising along with bond yields. Energy companies eked out a slight gain despite a downturn in oil prices. The broad market slide came as investors pored over corporate quarterly results.
“The earnings were a little bit disappointing today,” said Lindsey Bell, an investment strategist at CFRA Research.
The Standard & Poor’s 500 index retreated 15.51 points, or 0.6%, to 2,693.13. The Dow Jones industrial average slipped 83.18 points, or 0.3%, to 24,664.89 — slightly in the red for the year. The Nasdaq composite fell 57.18 points, or 0.8%, to 7,238.06. The Russell 2000 index of smaller-company stocks went down 9.74 points, or 0.6%, to 1,573.82.
Disappointing results from Philip Morris International and Procter & Gamble helped pull the market down.
Philip Morris disclosed weak quarterly sales and said sales of its iQos device in Japan were slower than expected. The tobacco company’s stock was the biggest decliner in the S&P 500, sinking 15.6% to $85.64. That’s its worst single-day loss of all time.
Procter & Gamble fell 3.3% to $74.95 despite posting results that topped Wall Street’s forecasts. The consumer products company reported a flat third-quarter profit, and Chief Executive David Taylor said that the company is facing a challenging “macro environment” and that markets it operates within are being transformed. The company also agreed to buy Merck’s consumer health business for $4.2 billion.
Tech stocks, still the biggest gainers this year, weighed on the market. Firms in the computer chip business sank for the second day in a row. Lam Research, which makes chipmaking equipment, led the slide, dropping 6.6% to $190.39.
Apple fell 2.8% to $172.80 after Taiwan Semiconductor, a company that is reportedly linked to Apple, gave a weak forecast.
American Express jumped 7.6% to $102.37 after the credit card issuer reported a big quarterly profit.
Bond yields rose, helping push up bank stocks. Bank of New York Mellon shares climbed 5.7% to $55.24.
Mortgage rates rose to their highest levels in four years, and home builders’ stocks fell. KB Home dropped 7.6% to $26.85.
The yield on the 10-year Treasury rose to 2.92% from 2.88%. That’s the highest level since February.
Benchmark U.S. crude slipped 18 cents to $68.29 a barrel. Brent crude rose 30 cents to $73.78 a barrel.
Gold fell $4.70 to $1,348.80 an ounce. Silver fell 1 cent to $17.24 an ounce. Copper fell 3 cents to $3.13 a pound.
The dollar rose to 107.41 yen from 107.26 yen. The euro fell to $1.2337 from $1.2377.