sunny.png
Saturday August 24th, 2019 9:32AM

US stock indexes dip as oil prices sink energy companies

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — A late gain for U.S. stocks slipped away Wednesday as a four-day winning streak ended. Energy companies sank along with the price of oil.

The price of crude oil fell more than 3 percent Wednesday. Big dividend payers and industrial companies slipped. Gains for Microsoft, Facebook and Alphabet helped technology companies finish higher. Banks and health care companies also rose.

The U.S. and China both announced new tariffs: later this month each country will put a 25 percent tax on $16 billion in goods imported from the other. Both countries placed tariffs on $34 billion in imports earlier this month, and they have threatened much larger tariffs to come.

But investors have been focusing on rising company earnings instead. Karyn Cavanaugh, senior markets strategist at Voya Investment Management, said U.S. companies are expecting bigger profits in spite of the tariffs.

"That speaks to me a lot louder than a lot of negative headlines," she said. "Companies have gotten very good at minimizing their costs and being very efficient with what they have."

The S&P 500 index dipped 0.75 points to 2,857.70. The Dow Jones Industrial Average fell 45.16 points, or 0.2 percent, to 25,583.75. The Nasdaq composite rose 4.66 points, or 0.1 percent, to 7,888.33. The Russell 2000 index of smaller stocks lost 1.42 points, or 0.1 percent, to 1,686.88.

The Trump administration plans to tax Chinese industrial products such as steam turbines and iron girders starting Aug. 23. China's government said it will put tariffs on U.S. goods including cars, crude oil and scrap metal starting on the same date.

Oil futures fell sharply. U.S. crude oil lost 3.2 percent to $66.94 a barrel in New York. Brent crude, the standard for international oil prices, fell 3.2 percent to $72.28 a barrel in London.

Exxon Mobil lost 0.7 percent to $80.73 and Chevron dipped 1 percent to $123.88.

Snap, which runs the Snapchat video app, fell 6.8 percent to $12.23 after it said daily users fell during the second quarter. It's the latest technology company to have its stock drop after announcing discouraging user totals, joining Facebook, Twitter and Netflix.

Match Group, the parent of online dating companies including Match.com and OKCupid, bucked that trend. Its stock jumped 17.3 percent to $45.60 after Match reported big gains in subscribers, especially for Tinder. Its adjusted profit and revenue beat Wall Street projections.

Drugstore and pharmacy benefits manager CVS raised its annual profit forecast and rose 4.2 percent to $68.17. CVS said prescriptions sales grew, although it took a loss after it wrote down the value of its Omnicare pharmacy services business by almost $4 billion.

In April, construction equipment company Caterpillar said it doubted it would top its first-quarter profit for the rest of this year. Investors were concerned that that might hold true for the rest of corporate America, but so far it hasn't.

A month ago analysts expected the companies of the S&P 500 to earn $160.32 per share in 2018. That's risen by almost a dollar, to $161.29 a share. Their estimates for 2019 have risen by a bit more than a dollar, to $177.52 a share from $176.38.

Twinkie maker Hostess Brands plunged 17.6 percent to $11.49 after it said its results were hurt by cuts in promotional support and inventory from a major retailer and higher costs, including for transportation.

Pizza maker Papa John's fell 5.2 percent to $38.94 after it said North American sales fell again. The company also cut its forecasts for the year. Papa John's is in a public spat it with founder John Schnatter, who was ousted as chairman in July after a report he used a racial slur in a conference call.

Domino's, a rival pizza delivery company, climbed 3.4 percent to $286.92.

Walt Disney fell 2.2 percent to $113.98 after the entertainment company's profit and revenue fell short of analysts' estimates.

Cars.com and Avis Budget Group both sank after cutting their sales forecasts. Rental car company Avis skidded 15.2 percent to $32.85 while Cars.com, an online auto marketplace, dipped 2.6 percent to $27.29.

Struggling rival Hertz jumped 24 percent Tuesday after a better-than-expected quarterly report. Hertz fell 7.3 percent to $18.11 Wednesday.

Bond prices turned higher. The yield on the 10-year Treasury note fell to 2.96 percent from 2.97 percent.

In other commodities trading, wholesale gasoline fell 4 percent to $2.02 gallon. Heating oil lost 2.5 percent to $2.12 a gallon. Natural gas rose 1.8 percent to $2.95 per 1,000 cubic feet.

Gold rose 0.2 percent to $1,221 an ounce. Silver gained 0.4 percent to $15.43 an ounce. Copper remained at $2.75 a pound.

The dollar fell to 110.96 yen from 111.43. The euro inched up to $1.1619 from $1.1594.

The German DAX fell 0.1 percent and France's CAC 40 lost 0.4 percent. In Britain, the FTSE 100 index rose 0.8 percent.

Japan's Nikkei 225 index gave up early gains and closed 0.1 percent lower. Hong Kong's Hang Seng index added 0.4 percent while South Korea's Kospi edged 0.1 percent higher.

____

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

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Palestinian-American candidate is source of West Bank pride
The Michigan primary victory of Rashida Tlaib, who is expected to become the first Muslim woman and Palestinian-American to serve in the U.S. Congress, triggered an outpouring of joy in her ancestral village on Wednesday
4:51PM ( 9 minutes ago )
Father blames 'stand your ground' in son's parking-lot death
Father of slain black man says Florida's polarizing "stand your ground" self-defense law is to blame for his son's killing
4:46PM ( 14 minutes ago )
US stock indexes dip as oil prices sink energy companies
U.S. stocks finish mostly lower as a drop in oil prices drags down energy companies and industrial companies also decline
4:44PM ( 15 minutes ago )
Associated Press (AP)
Famous Nevada pimp running for office loses brothel license
Brothel owner turned politician Dennis Hof has lost his license for one of his brothels after failing to apply for a renewal and pay fees on time
4:04PM ( 56 minutes ago )
Venezuela top court orders lawmakers arrested
Venezuela's supreme court is ordering the arrest of prominent opposition leader Julio Borges in connection with an alleged assassination attempt against President Nicolas Maduro
3:52PM ( 1 hour ago )
GOP congressman from New York charged with insider trading
Republican U.S. Rep. Chris Collins of New York has been indicted on securities fraud charges
3:46PM ( 1 hour ago )
AP Business
$120M settlement reached in huge 2015 Los Angeles gas leak
A nearly $120 million settlement has been reached in litigation stemming from a blowout at a Southern California storage field where a massive methane release forced thousands from their homes three years ago
1:44PM ( 3 hours ago )
CVS Health tops 2Q forecasts, books charge of nearly $4B
CVS Health beat Wall Street's second-quarter expectations, helped by a rise in prescriptions, but a nearly $4-billion charge from one of the company's businesses weighed on results
11:52AM ( 5 hours ago )
The Latest: Gates wraps testimony, says he made 'mistakes'
Gates says Manafort told him to be truthful about offshore shell companies, bank accounts in a 2014 interview
11:28AM ( 5 hours ago )
AP Business - Corporate News
Oil price drop sinks energy stocks, threatening win streak
U.S. stocks are taking small losses, threatening a four-day winning streak that has brought the S&P 500 index close to the all-time high it reached in January
12:40PM ( 4 hours ago )
China exports accelerated in July despite rise in US tariffs
China's exports to the US accelerated in July despite increase in Trump tariffs
11:41AM ( 5 hours ago )
Maduro alleges 2 opposition leaders linked to drone attack
President Nicolas Maduro says two opposition legislators were involved in an attempt to assassinate him, and witnesses say at least one lawmaker is among those detained
11:23AM ( 5 hours ago )
AP Business - Economy
World shares mixed on news of US tariffs for Chinese exports
World shares mixed after new US tariffs to be imposed on China exports
5:21AM ( 11 hours ago )
Asian shares mixed on news of US tariffs for Chinese exports
Asian shares mixed after new US tariffs to be imposed on China exports
2:32AM ( 14 hours ago )
Asian shares mixed after new US tariffs put on China exports
Asian shares mostly higher after new US tariffs put on China exports
12:39AM ( 16 hours ago )
AP Business - Financial Markets
Farmworkers protest treatment in Italy after migrant deaths
Hundreds of crop pickers and labor union activists have marched from a shanty town in southern Italy to protest what they say is the exploitation of migrant farmworkers
12:48PM ( 4 hours ago )
Gates says Manafort told him to be truthful to FBI
The star witness in Paul Manafort's financial fraud trial says the former Trump campaign chairman told him to be truthful about offshore shell companies and bank accounts in a 2014 FBI interview
10:48AM ( 6 hours ago )
Manafort lawyer attacks star witness' affair, 'many lies'
Questioning of Manafort protege focuses on his own crimes, an extramarital affair and plea deal
8:48AM ( 8 hours ago )
AP Business - Industries
Navajo robotics team heads to international competition
A team of Navajo high school students from a remote town in southern Utah is building a robot to represent North America in an international robotics competition
3:13PM ( 1 day ago )
Italian prosecutors investigate fiery crash near Bologna
Italy's premier has visited victims of the fiery crash of a tanker truck carrying highly flammable gas near Bologna, saying that it was important to understand what happened to prevent future tragedies
2:01PM ( 1 day ago )
Italian premier visits victims of fiery crash near Bologna
Italy's premier has visited victims of the fiery crash of a tanker truck carrying highly flammable gas near Bologna, saying that it was important to understand what happened to prevent future tragedies
6:28AM ( 1 day ago )
AP Business - Utilities
Palestinian-American candidate is source of West Bank pride
The Michigan primary victory of Rashida Tlaib, who is expected to become the first Muslim woman and Palestinian-American to serve in the U.S. Congress, triggered an outpouring of joy in her ancestral village on Wednesday
4:51PM ( 12 minutes ago )
Father blames 'stand your ground' in son's parking-lot death
Father of slain black man says Florida's polarizing "stand your ground" self-defense law is to blame for his son's killing
4:46PM ( 17 minutes ago )
3rd-party hopeful brings cash to race with Utah congressman
A candidate for a new, moderate third-party is bringing a trove of cash and a little Mormon humor to a northern Utah congressional race against a longtime Republican incumbent
4:38PM ( 24 minutes ago )
US to impose sanctions on Russia over nerve agent attack
The United States will impose new sanctions on Russia for its use of a nerve agent in an attempt to kill a former Russian spy and his daughter in Britain
4:34PM ( 28 minutes ago )
Emergency declared head of Charlottesville anniversary
Virginia Gov. Ralph Northam and the city of Charlottesville have proactively declared a state of emergency ahead of the one-year anniversary of a violent white nationalist rally in Virginia that left a woman dead and dozens more injured.
4:20PM ( 42 minutes ago )