Wednesday December 12th, 2018 2:44AM

Losses for banks and smaller companies take US stocks lower

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks slipped Tuesday as smaller companies and banks took their worst losses in a few months. With stock indexes near record highs, investors moved some money into big-dividend stocks like real estate companies.

Banks and other financial companies have been climbing over the last two months, but Tuesday they skidded as interest rates moved lower. Small, domestically-focused companies had their worst day since mid-August as House Republicans began making changes to their tax bill. Their Senate counterparts are expected to introduce their own bill soon. Smaller companies tend to pay higher tax rates than their bigger peers because they make more of their money in the U.S. and don't have as many ways to reduce their taxes.

"Financials would be a primary beneficiary of a 20 percent corporate tax rate because they're domestically based and they pay domestic taxes," said Quincy Krosby, chief market strategist at Prudential Financial.

While the pace of company earnings is slowing, they continued to hold sway over parts of the market. Travel booking companies TripAdvisor and Priceline both plunged while Weight Watchers continued to surge after it raised its forecasts for the year. The weight loss company has more than quadrupled in value this year.

The Standard & Poor's 500 index dipped 0.49 points to 2,590.64. The Dow Jones industrial average added 8.81 points to 23,557.23, another record high. The Nasdaq composite fell 18.65 points, or 0.3 percent, to 6,767.78. The Russell 2000 index tumbled 18.87 points, or 1.3 percent, to 1,479.09.

Banks fell along with bond yields and interest rates. Both have moved lower over the last few days, which reduces the profits banks make from lending. The yield on the 10-year Treasury note slipped to 2.31 percent from 2.32 percent.

JPMorgan Chase fell $2.03, or 2 percent, to $98.75 and U.S. Bancorp lost $1.40, or 2.6 percent, to $53.45. First Financial Bancshares, a smaller, Texas-based bank, fell $1.15, or 2.5 percent, to $44.40.

Red Robin Gourmet Burgers plunged after it slashed its profit forecast. It pointed to higher labor costs and said it will temporarily stop opening new locations at the end of its next fiscal year. The stock lost $19.35, or 28.9 percent, to $47.70. Consumer products distributor Core-Mark fell $3.07, or 9.1 percent, to $30.63 after it cut its outlook.

Household goods makers, utilities, and other companies that pay big dividends did better than the rest of the market. Drugstore and pharmacy benefits company CVS Health jumped $2.15, or 3.2 percent, to $68.95 to recover some of its recent losses. Shopping mall operator GGP soared $3.19, or 16.8 percent, to $22.20. Bloomberg reported that GGP is in talks with Brookfield Asset Management about potentially buying the rest of the company. Competitor Macerich jumped $4.57, or 8.4 percent, to $58.76.

Real estate, household goods and phone companies have lagged far behind the S&P 500 this year. The stocks are generally seen as cautious investments, and investors look for them when they are worried about market volatility. But investors have been betting on improved economic growth rather than looking for safety.

Travel website TripAdvisor plunged after its third-quarter revenue fell short of analyst estimates. Booking service Priceline Group had a better-than-expected quarter, but its forecasts for the current quarter disappointed Wall Street. Analysts said the company is spending a lot of money on advertising, but that may pay off with increased market share. TripAdvisor sank $9.18, or 23.2 percent, to a five-year low of $30.35 while Priceline lost $257.28, or 13.5 percent, to $1,645.72. Expedia shed $3.37, or 2.7 percent, to $119.61.

However Royal Caribbean Cruises jumped $3.89, or 3.1 percent, to $129.23 after it had a strong quarter even though its business was disrupted by three major hurricanes.

Drugmaker Mallinckrodt plunged after it said sales of its costly HP Acthar gel have been hurt because fewer prescriptions are being filled. It said revenue from the drug will decline in the fourth quarter. The company also reported weaker sales of generic drugs. Already trading at all-time lows, the stock dropped $11.07, or 35.5 percent, to $20.11.

Benchmark U.S. crude fell 15 cents to $57.20 a barrel in New York. Brent crude, used to price international oils, dipped 58 cents to $63.69 a barrel in London. Oil prices rose about 3 percent Monday and hit two-year highs after a wave of arrests of princes and other officials in Saudi Arabia. Investors wondered if the upheaval could affect oil supplies and prices.

Wholesale gasoline lost 1 cent to $1.82 a gallon. Heating oil fell 2 cents to $1.92 a gallon. Natural gas rose 2 cents to $3.15 per 1,000 cubic feet.

Gold lost $5.80 to $1,275.80 an ounce. Silver fell 30 cents to $16.94 an ounce. Copper declined 7 cents to $3.09 a pound.

The dollar rose to 113.87 yen from 113.77 yen. The euro fell to $1.1589 from $1.1606.

European stocks fell. The British FTSE 100 and the German DAX each shed 0.7 percent. The CAC 40 in France lost 0.5 percent. Tokyo's Nikkei 225 jumped 1.7 percent and Hong Kong's Hang Seng advanced 1.3 percent. In Seoul, the Kospi lost 0.2 percent.


AP Markets Writer Marley Jay can be reached at His work can be found at

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2018
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Man defends himself with toy in violent thermostat spat
Authorities say a heated argument over a turned-up thermostat in a mobile home took a violent turn when a Minot man punched his fiancée's brother in the face and threatened him with a knife
4:59PM ( 7 minutes ago )
The Latest: Trump lends last-minute help to Republican
President Donald Trump is lending last-minute support to Republican Ed Gillespie in Virginia's closely watched race for governor
4:47PM ( 18 minutes ago )
New Jersey GOP congressman LoBiondo to retire after 12 terms
Twelve-term New Jersey GOP Rep. Frank LoBiondo has announced he will retire, making him the latest moderate Republican to leave Congress during President Donald Trump's administration
4:43PM ( 23 minutes ago )
Associated Press (AP)
Texas church gunman once escaped from mental health center
Texas church gunman escaped from mental health center in 2012
3:52PM ( 1 hour ago )
The Latest: Meadows: Tax bill won't quash individual mandate
An influential conservative congressman predicts "there's no way" the House tax bill will include a repeal of an "Obamacare" mandate that individuals buy health insurance
3:42PM ( 1 hour ago )
Disney ends LA Times ban after widespread backlash
The Walt Disney Co. on Tuesday lifted its ban of Los Angeles Times reporters and critics from its press screenings after a widespread backlash prompted several media outlets to announce their own boycotts of Disney movies
3:40PM ( 1 hour ago )
AP Business
Gunman checked each aisle, shot babies at point-blank range
Survivors say church gunman checked each aisle for more victims, shot babies at point-blank range
2:12PM ( 2 hours ago )
Ex Pilot execs' attorneys argue against guilt by association
Attorneys for two former executives at the truck stop chain controlled by the family of Cleveland Browns owner Jimmy Haslam and Tennessee Gov. Bill Haslam say their clients shouldn't be found guilty by association.
1:46PM ( 3 hours ago )
Croatian businessman arrested in London over huge bankruptcy
London police say a prominent Croatian businessman has been arrested on a warrant issued by Croatian authorities
1:08PM ( 3 hours ago )
AP Business - Corporate News
GOP tax bill would have impact on pro, college sports
The GOP tax reform bill released last week would eliminate federal subsidies for new stadiums, one of several ways it would affect the world of sports
2:30PM ( 2 hours ago )
Crush of tough issues could bring about government shutdown
Early signs of disagreement and uncertainty among congressional lawmakers and the White House point to the possibility of a government shutdown in December
1:37PM ( 3 hours ago )
Big stakes in Beijing: A triumphant Xi vs. a chastised Trump
When China rolls out the red carpet for Donald Trump, the grandeur of its welcome for the larger-than-life American president will mask a sobering reality with stakes that have never been higher
1:16PM ( 3 hours ago )
AP Business - Economy
Global stocks rise after Wall Street gain, Saudi turmoil
Global stocks have risen after Wall Street gained on deal reports and oil prices rose for a second day following turmoil in Saudi Arabia
3:52AM ( 13 hours ago )
Asian stocks rise after Wall Street gains, oil surges
Asian stock markets have gained after Wall Street rose and turmoil in Saudi Arabia sent crude prices to two-year highs
12:22AM ( 16 hours ago )
Fed leadership overhaul widens under Trump
Revamping of Federal Reserve widens with announcement that Dudley will step down next year
5:06PM ( 1 day ago )
AP Business - Financial Markets
Lebanese PM who resigned from Saudi Arabia visits UAE
Lebanese PM who resigned from Saudi Arabia makes brief visit to UAE as Saudis issue stern warning to Hezbollah
8:39AM ( 8 hours ago )
Fossil fuels will be main energy source for decades - OPEC
OPEC says long-term growth in global oil demand will steadily lessen from an annual average of 1.3 million barrels a day between 2016-2020, to 300,000 barrels a day by 2035-2040 but fossil fuels will remain main energy source of the future
8:36AM ( 8 hours ago )
North Korea, trade deficit on agenda of Trump's China visit
President Donald Trump's agenda in Beijing is expected to be led by the standoff over North Korea's nuclear weapons and demands that China do more to balance trade with America
6:58AM ( 10 hours ago )
AP Business - Industries
The Latest: Stock of detained Saudi billionaire's firm drops
Shares of an investment company owned by a Saudi billionaire detained in a massive sweep in Riyadh have dropped 10 percent in trading on the kingdom's stock market
3:09AM ( 2 days ago )
World markets mostly higher on Trump's safe pick to lead Fed
Most world stock markets were higher Friday as investors welcomed news that the next Fed chief will be Jerome Powell, seen as a safe choice ensuring continuity at the world's most influential central bank
5:18AM ( 4 days ago )
Questions arise over departure of first woman to lead Fed
Fed Chair Janet Yellen makes history again at Fed, but for being denied a second term in spite of a growing economy and record stock market
3:15AM ( 4 days ago )
AP Business - Financial Services
Report: Commerce head has stake in firm tied to Putin orbit
Report: Newly leaked documents show that Commerce Secretary Wilbur Ross has a stake in a shipping company that does business with a gas producer partly owned by the son-in-law of Russian President Vladimir Putin
10:48AM ( 1 day ago )
Saudi Arabia detains famed billionaire amid investment push
Among those detained in Saudi Arabia, no name carries more power in Western financial markets than Prince Alwaleed bin Talal
9:39AM ( 2 days ago )
Billionaire prince among dozens arrested in Saudi sweep
Saudi Arabia has arrested dozens of princes, top officials and businessmen, including a well-known royal billionaire, as part of a sweeping anti-corruption probe that further cements control in the hands of its young crown prince
8:37AM ( 2 days ago )
AP Business - Utilities
The Latest: Trump lends last-minute help to Republican
President Donald Trump is lending last-minute support to Republican Ed Gillespie in Virginia's closely watched race for governor
4:47PM ( 18 minutes ago )
New Jersey GOP congressman LoBiondo to retire after 12 terms
Twelve-term New Jersey GOP Rep. Frank LoBiondo has announced he will retire, making him the latest moderate Republican to leave Congress during President Donald Trump's administration
4:43PM ( 23 minutes ago )
Latest: Sheriff: Pastor says gunman was at Halloween party
Wilson County Sheriff Joe Tackitt says the pastor of the First Baptist Church of Sutherland Springs told him the man who massacred worshippers Sunday had attended the church's Fall Festival on Halloween night
4:40PM ( 26 minutes ago )
Former star pitcher Halladay killed in Florida plane crash
Former star pitcher Roy Halladay has been killed in a plane crash in the Gulf of Mexico
4:36PM ( 29 minutes ago )
NY Times calls Weinstein lawyer conduct inexcusable
The New York Times says it was inexcusable that lawyer David Boies' firm was working to suppress its investigation into harassment charges against Harvey Weinstein when it was also representing the newspaper in other cases
4:24PM ( 42 minutes ago )