partlycloudy
Tuesday May 31st, 2016 4:13PM

Stocks drop on mixed economic news; Dow down 180

By The Associated Press
NEW YORK (AP) -- Investors retreated from U.S. stocks Thursday after disappointing earnings from Wal-Mart and mixed news about the economy.

KEEPING SCORE: The Standard & Poor's 500 index fell 18 points, or 1 percent, to 1,871 as of 3:10 p.m. Eastern time. The technology-focused Nasdaq composite slid 29 points, or 1 percent, to 4,071. The Dow Jones industrial average was down 180 points, or 1.1 percent, to 16,433. It was second day of sharp declines for the blue-chip index. On Wednesday, the Dow's 101-point drop ended a five-day winning streak.

RETAIL STILL CHILLY: Wal-Mart Stores fell $1.88, or 2.4 percent, to $76.86. The company reported lower earnings for its most recent quarter and warned that things don't look much better for the current period. The company, like many other retailers, blamed harsh winter weather. Department store operator Kohl's also fell after announcing a drop in first-quarter earnings. Its comparable-store sales fell 3.4 percent. Analysts were looking for a slight uptick.

FACTORY SLOWDOWN: U.S. industrial production dropped in April, the Federal Reserve said Thursday, possibly due to more bad weather. Factory output, which excludes mines and utilities, fell by 0.4 percent. Another manufacturing-related report, the Philadelphia Fed Index, fell short of expectations.

JOBS: One positive economic report was jobless claims. The Labor Department said the number of people who filed for unemployment benefits fell to its lowest level in seven years last week. Weekly unemployment benefit applications fell by 24,000 to 297,000. Economists had predicted a much smaller drop in jobless claims applications.

THE QUOTE: "People are just a little bit nervous about the entire global economic environment at the moment," said Ryan Larson, head of U.S. equities at the Royal Bank of Canada.

BUYING SAFETY: Investors sold stocks and bought bonds. The yield on the U.S. 10-year note fell below 2.5 percent for the first time in 2014. The falling yield, which began the year at 3 percent, has surprised many investors this year. Many thought the improving economy and the reduction in the Federal Reserve's bond-buying program would push yields up. There was talk among traders that foreign buyers have raced into the U.S. Treasury market looking for safety, which might be distorting the move in bonds. Despite their fall, yields of U.S. government bonds are higher than those of some developed economies.

"This flight to quality is overwhelming bond investors," said Tom di Galoma, a fixed-income trader at ED&F Man Capital.

PRICE POP: U.S. consumer prices rose at their fastest pace in nearly a year in April, the Labor Department said Thursday. The consumer price index, an often-quoted barometer of inflation in the U.S., rose by 0.3 percent last month due to higher food and gas prices. Inflation is on pace to rise 2 percent this year. While not alarming, it is noticeably higher than a year ago.

CISCO SURGE: Telecommunications equipment maker Cisco jumped $1.59, or 7 percent, to $24.40. Cisco reported an adjusted profit of 51 cents a share, three cents better than expectations.
© Copyright 2016 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 1 year ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 1 year ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 1 year ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 1 year ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 1 year ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 1 year ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 1 year ago )
Local/State News
Amid shouts of 'shame,' House GOP defeats gay rights measure
Democrats shouted "shame," but House Republicans switched their votes and defeated a measure to protect gay rights
8:03PM ( 1 week ago )
CDC director Freiden warns GOP Zika bill is inadequate
The head of the Centers for Disease Control and Prevention warned Wednesday that a House GOP measure to combat the Zika virus is inadequate to deal with the swelling threat to public health
7:36PM ( 1 week ago )
Trump unveils list of his top picks for Supreme Court
Donald Trump, the presumptive Republican nominee for president, released Wednesday a list of 11 potential Supreme Court justices he plans to vet to fill the seat of late Justice Antonin Scalia if he's elected to the White House.
3:31PM ( 1 week ago )
1st US penis transplant could bring hope to maimed soldiers
A 64-year-old cancer patient has received the nation's first penis transplant, a groundbreaking operation that may also help U.S. veterans maimed by roadside bombs
8:04PM ( 2 weeks ago )
States dig in against directive on transgender bathroom use
Politicians in Texas, Arkansas and elsewhere are vowing defiance over the Obama administration's new directive on transgender bathroom use
9:19PM ( 2 weeks ago )