Stocks Skid Early Thursday 07/19 09:31
U.S. stocks are falling Thursday morning as weak results from banks and
consumer products companies pull major indexes lower.
NEW YORK (AP) -- U.S. stocks are falling Thursday morning as weak results
from banks and consumer products companies pull major indexes lower. Online
retailer eBay plunged after its second-quarter sales fell short of Wall Street
projections. Comcast rose after ending its bid to buy most of Twenty-First
Later, representatives of the auto industry will testify to Congress about
tariffs on imported cars and car parts proposed by the Trump administration,
something the auto industry opposes.
KEEPING SCORE: The S&P 500 index slid 12 points, or 0.5 percent, to 2,802 as
of 10 a.m. Eastern time. The Dow Jones Industrial Average fell 121 points, or
0.5 percent, to 25,077. The Nasdaq composite gave up 35 points, or 0.5 percent,
to 7,818. The Russell 2000 index of smaller-company stocks fell 5 points, or
0.3 percent, to 1,686.
EARNINGS: Second-quarter results and forecasts from U.S. companies continued
to dominate trading. EBay slumped 9.2 percent to $34.44 after reporting revenue
that missed forecasts.
American Express fell 3.4 percent to $99.50 after setting aside more money
to cover potential bad loans. AmEx also saw its delinquency rate rise. That
could mean that some of American Express' customers, typically the most
creditworthy, are struggling to pay their bills.
Philip Morris skidded 6.3 percent to $77.01 after cutting its annual profit
forecast. IBM fared better. The stock rose 3.5 percent to $149.59 after the
technology and consulting company reported results that surpassed analysts'
CHANNEL CHANGER: Cable and internet provider Comcast said it won't make
another bid for Twenty-First Century Fox's entertainment business and will
instead focus on trying to buy European pay-TV operator Sky. Comcast had
offered as much as $66 billion in cash for those businesses, but Disney topped
it with a bid of $71 billion in cash and stock. Fox shareholders are scheduled
to vote on Disney's offer next week.
Comcast gained 3.3 percent to $35.15 while Fox fell 1.8 percent to $45.86.
Disney gained 2.3 percent to $113.23, and in London, shares of Sky fell 1.9
AUTO TARIFFS: The next big event on the global trade front may be the U.S.
Commerce Department's decision on possible taxes on imported vehicles and auto
parts. It might recommend those tariffs if it determines the imports threaten
America's national security. Representatives of manufacturers, suppliers and
car dealers are in Washington Thursday along with foreign diplomats to testify
at a Congressional hearing, seeking to head off new auto tariffs. The European
Union said it was already preparing measures to retaliate.
General Motors slid 1.2 percent to $39.39 and Tesla dipped 2.6 percent to
$315.58. Auto parts retailer BorgWarner lost 1.3 percent to $45.40.
EARLY LOSERS: Health care companies also struggled. Drugmaker AbbVie sank
5.2 percent to $89.47 and CVS Health shed 3.8 percent to $65.29. Industrial
companies gave up some of Wednesday's gains. 3M fell 1.2 percent to $199.79.
COMMODITIES: Benchmark U.S. crude rose 1.1 percent to $69.51 per barrel in
New York. Brent crude, used to price international oils, gained 0.6 percent to
$73.33 per barrel in London.
Gold fell 1 percent to $1,216 an ounce and copper dropped 2.6 percent to
$2.69 a pound. Mining companies and basic materials makers fell.
BONDS: Bond prices edged lower. The yield on the 10-year Treasury note fell
to 2.86 percent from 2.87 percent.
CURRENCIES: The dollar rose to 112.92 yen from 112.84 yen. The euro fell to
$1.1600 from $1.1646. The ICE-US dollar index reached a 12-month high.
OVERSEAS: Germany's DAX fell 0.6 percent and France's CAC 40 was down 0.4
percent. Britain's FTSE 100 added 0.3 percent.
Asian markets finished mostly lower with Japan's Nikkei 225 losing 0.1
percent and South Korea's Kospi shed 0.3 percent. Hong Kong's Hang Seng fell