FINANCIAL MARKETS
NEW YORK—Despite strong results from industrial companies, U.S. stocks couldn’t get any momentum going Tuesday after car makers said their sales are shrinking. Engine maker Cummins sent manufacturers and other industrial companies higher after reporting solid first-quarter earnings. A late slump took the price of oil to its lowest price in almost six months. Ford, General Motors and Fiat Chrysler all fell after they said sales declined in April. Thanks to an upturn in the last few minutes of trading, the Standard & Poor’s 500 index rose 2.84 points, or 0.1 percent, to 2,391.17. The Dow Jones industrial average added 36.43 points, or 0.2 percent, to 20,949.89. The Nasdaq composite set another record as it picked up 3.76 points, or 0.1 percent, to 6,095.37. The Russell 2000 index of small-company stocks sank 8 points, or 0.6 percent, to 1,399.36.
The six largest auto makers in the U.S. all said their sales fell in April. Vehicle sales have set records the last few years and analysts are worried the streak is ending and car companies are relying too much on discounts and incentives to keep their sales numbers high.
Ford lost 50 cents, or 4.4 percent, to $10.92 and GM gave up $1, or 2.9 percent, to $33.20 while Fiat Chrysler skidded 49 cents, or 4.3 percent, to $10.92. Car retailers, rental companies and parts suppliers slipped as well. Industrial companies made some of the biggest gains. Cummins reported a far bigger profit and better sales than analysts expected, and its stock climbed $9.23, or 6.1 percent, to $160.56. The company said demand from construction and mining sales grew compared with the same period a year ago, but truck production in North America fell.
Benchmark U.S. crude lost $1.18, or 2.4 percent, to $47.66 a barrel in New York. That’s its lowest price since mid-November. Brent crude, used to price international oils, shed $1.06, or 2.1 percent, to $50.46 a barrel in London.
Technology stocks rose further. The S&P 500’s technology index, which includes 69 major companies, is at its highest levels since March 2000, the peak of the dot-com boom. However it’s still well below the records it set back then.
Apple gained 93 cents to $147.51 during regular trading. Its stock lost 2 percent in aftermarket trading after the company reported results that included slightly disappointing quarterly iPhone sales. Its guidance also wasn’t as strong as investors hoped. Bond prices headed higher. The yield on the 10-year Treasury note fell to 2.28 percent from 2.32 percent.
In other energy trading, wholesale gasoline dipped 1 cent to $1.51 a gallon. Heating oil lost 2 cents to $1.47 a gallon. Natural gas gave up 2 cents to $3.20 per 1,000 cubic feet.