clear
Friday November 24th, 2017 9:54AM

US stocks on two-day losing streak as health stocks fall

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — So that's what a losing streak feels like. Stocks fell for the second day in a row Friday, which hadn't happened in a month, as Amazon put a scare into yet another industry: medical device and health care equipment companies.

Those companies slumped after an analyst for Citi Investment Research said Amazon might be on the verge of shaking up their industry by speeding up distribution and cutting prices. Energy companies gave up some of their recent gains while retailers, media companies and household goods companies moved higher. Stocks finished the week with small losses, ending an eight-week winning streak.

One factor in those losses was uncertainty over the Republican plan to cut taxes. Stocks dipped Thursday after Senate Republicans proposed leaving corporate tax rates alone in 2018 before cutting them in 2019. That surprised investors, who pulled stocks down slightly from their recent record highs.

"We would expect a little bit more of that as we get more delays and uncertainty in the tax plan," said Sean Lynch, the co-head of global equity strategy for Wells Fargo Investment Institute. Lynch said an eventual tax cut for companies, and for at least some individuals, would give investors "a dose of confidence" that company earnings will grow a bit faster and the economy and stock market will rise for a bit longer.

The Standard & Poor's 500 index lost 2.32 points, or 0.1 percent, to 2,582.30. The Dow Jones industrial average slid 39.73 points, or 0.2 percent, to 23,422.21. The Nasdaq composite turned higher and rose 0.89 points to 6,570.94. The Russell 2000 index of smaller-company stocks inched up 0.26 points to 1,475.27.

The S&P 500 set an all-time high on Wednesday, but finished the week down 0.2 percent. The index had gained five percent over its winning streak, the longest in almost four years. The Russell 2000, which is comprised of smaller companies that might benefit more from a corporate tax cut, fell 1.3 percent this week. That was its largest loss in three months.

Citi Investment Research analyst Amit Hazan wrote Friday that Amazon is making quick progress in the medical supply field and could soon start distributing goods to hospitals, as some organizations appear interested in working with the online retail giant.

"New online distribution/wholesaling models like Amazon's will come to dominate the supply chain" in coming years, Hazan said.

Baxter International, which sells intravenous pumps and other hospital equipment, fell $1.35, or 2.1 percent, to $64.04. Becton, Dickinson dipped $5.25, or 2.3 percent, to $219.23. Medical device maker Medtronic slid $1.48, or 1.8 percent, to $79.33.

Competition with Amazon has hurt retailers for years and the online giant has also pressured supermarkets and grocery stores with its purchase of Whole Foods. In recent weeks, health care product companies, medication distributors and drugstores have all fallen as Wall Street wondered what Amazon's logistics expertise and its willingness to slash prices will do to their businesses. Drugstores CVS and Walgreens jumped Friday; investors may be relieved that Amazon could turn its focus to industries they are less involved in.

Long-suffering department stores made gains Friday. J.C. Penney advanced 42 cents, or 15.3 percent, to $3.17 after it said a closely-watched sales measurement grew for the first time in more than a year. The company also took a smaller quarterly loss than analysts had expected. Macy's built on its 11 percent jump a day ago and added another 48 cents, or 2.5 percent, to $19.98. Competitor Kohl's rose $1.87, or 4.5 percent, to $43.04. All of those companies have seen their sales and stocks tumble in large part because of increasing online competition.

Walt Disney Co. rose $2.10, or 2 percent, to $104.78 after it said it received bigger payments from cable companies for ESPN and offered more details about its planned sports streaming services. The company also announced plans for a new "Star Wars" film trilogy. "Star Wars: The Force Awakens," released in late 2015, grossed about $2 billion and investors have high hopes for next month's "The Last Jedi."

U.S. crude oil lost 43 cents to $56.74 a barrel in New York. Brent crude, used to price international oils, gave up 41 cents to $63.52 a barrel in London.

Wholesale gasoline gave up 1 cent to $1.81 a gallon. Heating oil lost 1 cent to $1.93 a gallon. Natural gas rose 1 cent to $3.21 per 1,000 cubic feet.

Bond prices slumped. The yield on the 10-year Treasury note rose to 2.38 percent from 2.34 percent.

Gold dropped $13.30, or 1 percent, to $1,274.20 an ounce. Silver fell 10 cents to $16.87 an ounce. Copper lost 1 cent to $3.08 a pound.

The dollar rose to 113.54 yen from 113.32 yen. The euro fell to $1.1618 from $1.1643.

The FTSE 100 index in Britain fell 0.7 percent. The French CAC 40 lost 0.5 percent and the German DAX dipped 0.4 percent. Japan's benchmark Nikkei 225 index lost 0.8 percent and South Korea's Kospi fell 0.3 percent. In Hong Kong, the Hang Seng dipped less than 0.1 percent.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jayt

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US stocks on two-day losing streak as health stocks fall
US stocks fall for second day as medical device makers take sharp losses
5:17PM ( 14 minutes ago )
After massacre, Las Vegas police beef up marathon security
Las Vegas is posting snipers and surrounding tens of thousands of runners with other safety measures at a weekend marathon
5:14PM ( 17 minutes ago )
Louis C.K. says he misused his power and 'brought pain'
Comedian Louis C.K. says allegations of sexual misconduct are true and expresses remorse.
5:13PM ( 18 minutes ago )
Associated Press (AP)
Weinstein's Impact: List of men accused of sexual misconduct
The Weinstein Effect: A list of men in the entertainment and media industries accused of sexual harassment, abuse, or other misconduct
4:31PM ( 1 hour ago )
Zinke says Democrats holding Interior nominees 'hostage'
Interior Secretary Ryan Zinke is complaining that Senate Democrats are holding the department's nominees "hostage" to a political agenda
4:18PM ( 1 hour ago )
Publisher says Arizona lawmaker made offensive remarks
The publisher of Arizona's largest newspaper has joined a growing list of women who say a top Republican state lawmaker subjected them to inappropriate sexual comments or actions
4:14PM ( 1 hour ago )
AP Business
US stocks slip as health care device companies stumble
US stocks are mostly lower as health care device and equipment companies take sharp losses as investors consider Amazon's potential to compete with them
3:00PM ( 2 hours ago )
US stocks head lower as health care companies plunge
US stocks are down for a second day as health care companies take sharp losses
1:48PM ( 3 hours ago )
JC Penney is the bright spot for retail this week
J.C. Penney surprises with rising comparable-store sales
10:51AM ( 6 hours ago )
AP Business - Corporate News
The Latest: Trump, world leaders coordinate shirts for photo
World leaders, including President Donald Trump and Russia's Vladimir Putin, donned matching silk button-down shirts at the Asia-Pacific Economic Cooperation summit in Vietnam
3:34PM ( 1 hour ago )
Talking tough on trade, Trump pushes 'America first' in Asia
Trump says U.S. will not be "taken advantage of anymore" when it comes to trade
2:18PM ( 3 hours ago )
Health care and technology losses take US stocks lower
US stocks are down for a second day as health care and technology companies post losses
10:28AM ( 7 hours ago )
AP Business - Economy
Global stock selloff deepens on fears over Trump tax revamp
Global stock markets extended losses on Friday as growing uncertainty over U.S. President Donald Trump's tax revamp dented investor sentiment
4:35AM ( 12 hours ago )
Senate GOP proposes to delay major corporate tax cut a year
Sweeping tax legislation proposed by Senate Republicans includes a one-year delay in plans for a major corporate tax cut despite strident opposition from the White House and others in the GOP
2:59AM ( 14 hours ago )
Most Asian shares track Wall Street losses on US tax fears
Most Asian stock markets fell after Wall Street fell from record highs on uncertainty over President Donald Trump's tax revamp but news that Beijing will ease curbs on foreign access to some sectors buoyed Chinese shares
12:54AM ( 16 hours ago )
AP Business - Financial Markets
Climate activists stage protest at German coal-fired plant
Environmental activists have staged a protest at a German coal-fired power plant, as Italy becomes the latest country to announce a deadline for ending its use of one of the most heavily polluting fossil fuels
3:02PM ( 2 hours ago )
Alaska lawmaker sees financial boon in refuge drilling
Alaska Sen. Lisa Murkowski says her legislation to open Alaska's Arctic National Wildlife Refuge to oil and gas drilling would generate $2 billion in royalties over the next decade _ with half the money going to her home state
2:30PM ( 3 hours ago )
The Latest: UN chief to urge action at climate conference
U.N. Secretary-General Antonio Guterres to urge leaders at climate talks to accelerate timetable for cutting emissions
2:11PM ( 3 hours ago )
AP Business - Industries
Patrick Cantlay wins playoff in Las Vegas
Patrick Cantlay won the Shriners Hospitals for Children Open in a playoff for the first victory in a PGA Tour career mostly derailed by a severe back injury
9:53PM ( 4 days ago )
US stocks are mixed on tax proposals and shaky forecasts
US stocks are mixed as House Republicans' tax cut proposals give smaller companies a boost, but home improvement retailers and homebuilders fall as the plan calls for reducing the tax deduction for interest on mortgage payments
3:39PM ( 1 week ago )
Losses for tech and consumer products companies hit stocks
US stocks are slipping as consumer products and technology companies move lower
12:00PM ( 1 week ago )
AP Business - Health Care
After massacre, Las Vegas police beef up marathon security
Las Vegas is posting snipers and surrounding tens of thousands of runners with other safety measures at a weekend marathon
5:14PM ( 18 minutes ago )
Louis C.K. says he misused his power and 'brought pain'
Comedian Louis C.K. says allegations of sexual misconduct are true and expresses remorse.
5:13PM ( 18 minutes ago )
1st trial stemming from Texas biker fight ends in mistrial
A judge has declared a mistrial in the trial of a leader of the Bandidos biker gang after the jury deadlocked on a verdict arising from the deadliest shootout between biker groups in U.S. history
5:11PM ( 21 minutes ago )
Moore defiant as GOP sees Alabama Senate seat at risk
Alabama Republican Roy Moore ignoring increasing pressure to abandon his Senate bid amid allegations of sexual misconduct
5:09PM ( 23 minutes ago )
The Latest: FX cuts ties with Louis C.K., ending 4 TV shows
The Latest: FX Networks and FX Productions announcing they will cut ties to Louis C.K., stripping his title as executive producer and taking away any compensation for the four projects they were working with him on
5:04PM ( 28 minutes ago )