clear
Wednesday January 16th, 2019 2:10PM

US stocks slip after post-election surge; oil falls again

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks in the U.S. are slipping Thursday afternoon after a big rally the day before. Energy companies continue to fall with the price of oil, which has dropped 20 percent since early October. Technology and internet companies are also down. The Federal Reserve left interest rates unchanged, as expected, but traders still think it will raise rates again in December.

Stocks have surged over the past week as the market recovered from its October swoon, and they jumped a day ago following the U.S. midterm elections.

KEEPING SCORE: The S&P 500 index shed 13 points, or 0.5 percent, to 2,800 as of 3 p.m. Eastern time. The S&P 500 jumped 2.1 percent Wednesday. That was its sixth gain in the last seven trading days, a rally that's helped stocks make up a lot of the ground they lost in October.

The Dow Jones Industrial Average lost 59 points, or 0.2 percent, to 26,120. The Nasdaq composite dipped 59 points, or 0.8 percent, to 7,511 after it surged 2.6 percent a day earlier. The Russell 2000 index of smaller-company stocks slipped 7 points, or 0.5 percent, to 1,574.

Stocks climbed Wednesday after the midterm elections generally went the way investors thought they would. The Democrats took control of the House of Representatives while the Republicans held on to a majority in the Senate. That means that politics appears that much less likely to crowd out the performance of the strong U.S. economy. A Federal Reserve meeting ending Thursday is not expected to result in an interest rate hike.

COMM ON: Chipmaker Qualcomm had a stronger-than-expected fourth quarter, but investors were startled by its forecasts for the current period. It's projecting revenue of $4.5 billion to $5.3 billion, far below the $5.6 billion analysts expected, according to FactSet. Its stock lost 8.2 percent to $58.04.

Apple stopped making royalty payments to Qualcomm following a dispute between the companies, and later decided to stop using Qualcomm modems in some of its products. Qualcomm said both of those changes have hurt its results.

BONDS: Bond prices were steady. The yield on the 10-year Treasury note remained at 3.23 percent. The Federal Reserve left interest rates where they are, but suggested it plans to keep raising rates in response to the strong U.S. economy. The Fed has raised its key rate eight times since late 2015 and is expected to do so again in December, with several more increases to follow.

Banks made small gains as long-term interest rates remained near highest levels of this year. High-dividend stocks fell. Southern Co. lost 0.9 percent to $46.58 and timberland real estate owner Weyerhauser dipped 1.4 percent to $27.12. Those stocks climbed in October as the rest of the market dropped because investors consider them safe options, but they've faded recently as stocks stabilized and high-growth companies started to do better.

THE QUOTE: Stocks started sinking last month because investors worried that the Fed was going to raise interest rates to the point they slowed down economic growth. But John Lynch, chief investment strategist at LPL Research, said he doesn't think that's going to happen and that the Fed will stop raising rates in 2019.

"We do not believe they will be as aggressive as many fear," he said. "We still don't have anything approaching the wage pressures that have historically scared the Fed."

The Fed has been raising rates so it can prevent inflation from getting out of hand. Lynch said that inflation isn't going to get much stronger because wages aren't going to grow much faster than they currently are. He said factors like the retirement of more Baby Boomers, global competition, and slower economic growth in the U.S. will all limit increases in pay.

HOME WRECKED: D.R. Horton, one of the largest homebuilders, fell 9 percent to $34.23 after its earnings and sales fell short of Wall Street forecasts. The company said rising home prices and mortgage rates are affecting demand. That exact combination has been weighing on home sales and the stocks all year. PulteGroup fell 3.6 percent to $24.19 and Lennar lost 2.3 percent to $41.99.

WYNN LOSES: Wynn Resorts dropped 12.3 percent to $100.01 after the casino operator said its business in Macau has slowed down recently.

ENERGY: Benchmark U.S. crude oil fell 1.6 percent to $60.67 a barrel in New York, and Brent crude lost 2 percent to $70.65 a barrel in London.

U.S. crude oil has fallen 20 percent since early October, when it traded at its highest price in almost four years. Government fuel stockpiles have expanded and the U.S. issued waivers to a number of countries that allow them to continue importing oil from Iran in spite of renewed sanctions on that country.

Wholesale gasoline was little changed at $1.64 a gallon. Heating oil dropped 3.1 percent to $2.17 a gallon. Natural gas edged down to $3.54 per 1,000 cubic feet.

METAL: Gold fell 0.3 percent to $1,225.10 an ounce. Silver lost 1 percent to $14.42 an ounce. Copper slipped 0.7 percent to $2.74 a pound.

CURRENCIES: The dollar rose to 113.96 yen from 113.34 yen. The euro fell to $1.1363 from $1.1455.

OVERSEAS: Germany's DAX lost 0.4 percent and the British FTSE 100 picked up 0.3 percent. The CAC 40 in France was 0.1 percent lower.

The Japanese Nikkei 225 rallied 1.8 percent and South Korea's Kospi rose 0.7 percent. In Hong Kong, the Hang Seng added 0.3 percent.

____

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Williams runs wild, Texas A&M routs NC State 52-13 in Gator
Trayveon Williams ran for 236 yards and three touchdowns, smashing a 30-year-old school record and carrying No. 21 Texas A&M to a 52-13 victory against beat North Carolina State in the Gator Bowl
11:09PM ( 4 days ago )
Harden's 43 points, triple-double lead Rockets over Memphis
James Harden had a triple-double of 43 points, 10 rebounds and 13 assists to lead the Houston Rockets to their fifth straight win, 113-101, over the Memphis Grizzlies on Monday night
10:53PM ( 4 days ago )
Deadline passes without Russian turnover of data to WADA
Deadline passes without Russian turnover of data, samples to WADA
10:43PM ( 4 days ago )
Associated Press (AP)
US stocks end dismal, volatile year on a bright note
Wall Street closed out a dismal, turbulent year for stocks on a bright note Monday, but still finished 2018 with the worst showing in a decade.
9:52PM ( 4 days ago )
Animal advocates: Fatal zoo mauling shows need for crackdown
Animal welfare advocates say fatal mauling of intern illustrates need to crack down on unaccredited exhibitors
9:36PM ( 4 days ago )
The Latest: House Dems unveil plan to re-open government
House Democrats have unveiled a package of bills that would re-open the federal government without approving funding for President Donald Trump's border wall with Mexico
9:31PM ( 4 days ago )
AP Business
Elizabeth Warren makes big move toward 2020 presidential run
Sen. Elizabeth Warren is taking the first major step toward running for president
4:27PM ( 5 days ago )
Markets Right Now: Stocks end dismal year on a bright note
The stock market ended a miserable year on a positive note but still closed out 2018 with its worst showing in a decade.
4:16PM ( 5 days ago )
US stocks hold modest gain on final day of volatile year
Stocks are moving higher as Wall Street draws closer to ending the final day of trading in a volatile year
3:53PM ( 5 days ago )
AP Business - Economy
Shares higher, oil gains in quiet New Year's Eve trading
Shares mixed in subdued New Year's Eve trading as China, US signal potential for progress on trade
3:37AM ( 5 days ago )
Asian markets mixed in quiet New Year's Eve trading
Shares mixed in subdued New Year's Eve trading as China, US signal potential for progress on trade
2:27AM ( 5 days ago )
Asian markets mostly higher in quiet New Year's Eve trading
Shares mostly higher in subdued New Year's Eve trading as China, US signal potential for progress on trade
11:59PM ( 5 days ago )
AP Business - Financial Markets
Boy whose Yemeni mom fought US travel ban to see him dies
A 2-year-old boy whose Yemeni mother fought the Trump administration's travel ban to see her son again has been buried a day after he was taken off life support at a California hospital
8:15PM ( 6 days ago )
Lampert's hedge fund makes last-minute bid to save Sears
Sears Chairman Eddie Lampert's hedge fund says it submitted a last-minute bid valued at $4.4 billion to keep the struggling retailer from being liquidated
11:46AM ( 1 week ago )
Lampert's hedge fund says bid submitted to save Sears
Sears Chairman Eddie Lampert's hedge fund says it submitted a last-minute bid valued at $4.4 billion to keep the struggling retailer from being liquidated
1:03AM ( 1 week ago )
AP Business - Industries
Wall Street notches best day in 10 years in holiday rebound
The Dow Jones Industrial Average jumped more than 1,000 points _ it's biggest point-gain ever _ as Wall Street notched its best day in 10 years Wednesday, rallying back from a Christmas Eve plunge
6:23PM ( 1 week ago )
Trump: 'I do' have confidence Treasury Secretary Mnuchin
President Donald Trump says he has confidence in Treasury Secretary Steven Mnuchin, calling him a "very talented guy" and "very smart person."
1:34PM ( 1 week ago )
Japan stocks plunge, other Asia markets fall after US losses
Japanese stocks plunge and other Asian markets decline following heavy Wall Street losses triggered by Trump's attack on US central bank
6:52AM ( 1 week ago )
AP Business - Financial Services
No aliens: NY transformer explosion lights sky, knocks power
New York police say a transformer has exploded at a Con Edison facility in Queens
3:46AM ( 1 week ago )
Japan falls, other Asian stocks gain after Wall Street rally
Most Asian stock markets gain, Japan edges down after Wall Street rally
3:10AM ( 1 week ago )
US stocks lose momentum a day after Dow's record gain
Stocks are down sharply, unable to build on the prior day's strong performance, as Wall Street's wild Christmas week rolls on
3:18PM ( 1 week ago )
AP Business - Utilities
Former Defense Secretary Harold Brown dies at 91
Former Defense Secretary Harold Brown, who guided American military during the Carter administration, dies at 91
7:46PM ( 18 minutes ago )
Luck has 2 TDs to lead Colts over Texans 21-7 in wild card
Andrew Luck threw for 222 yards and two touchdowns as the Indianapolis Colts raced out to a big lead and cruised to a 21-7 win over the Houston Texans in the wild-card game on Saturday
7:41PM ( 23 minutes ago )
Film critics choose 'The Rider' as best picture of 2018
The National Society of Film Critics has chosen Chloe Zhao's "The Rider" as best picture of 2018
7:20PM ( 45 minutes ago )
Iowa State drubs No. 5 Kansas 77-60
Marial Shayok scores 24 points as Iowa State routs No. 5 Kansas 77-60 for its 5th straight win
7:17PM ( 47 minutes ago )
Venezuela's congress names new leader, vows to battle Maduro
Venezuela's opposition-controlled congress has opened its first session of the year, installing a fresh-faced leader who struck a defiant tone toward embattled socialist President Nicolas Maduro
7:16PM ( 49 minutes ago )