fog.png
Saturday July 20th, 2019 7:38AM

Flickering trade hopes and tech stock losses hit US indexes

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. market indexes are mostly lower in wobbly trading Wednesday as weakness in technology companies cancels out gains in energy stocks and elsewhere in the market.

The market staged a brief rally around midday following a report that the U.S. was seeking new trade talks with China.

Chipmakers are falling, while Apple is moving lower as it announced updates to iPhones and Apple Watches. Energy companies are rising as U.S. crude oil reaches its highest price since July.

KEEPING SCORE: The S&P 500 index fell 2 points, or 0.1 percent, to 2,885 as of 3 p.m. Eastern time. The Dow Jones Industrial Average slipped 6 points to 25,964. The Nasdaq composite slid 38 points, or 0.5 percent, to 7,934 as technology companies declined.

The Russell 2000 index of smaller-company stocks lost 3 points, or 0.2 percent, to 1,714.

OIL: Oil prices built on Tuesday's gains, and U.S. crude hit its highest price since mid-July. The Energy Information Administration said U.S. crude stockpiles fell by more than 5 million barrels last week.

Benchmark U.S. oil climbed 1.6 percent to $70.37 a barrel in New York. Brent crude, the standard for international oil prices, added 0.9 percent to $79.74 a barrel in London.

Energy companies also rose. Chevron climbed 1 percent to $116.20 and Schlumberger rose 1.3 percent to $61.11.

FLEETING TRADE HOPES: The Wall Street Journal reported that U.S. officials recently proposed a new round of trade negotiations to give the Chinese government another chance to address U.S. concerns before it imposes bigger tariffs on goods imported from China.

Stocks climbed after that report, but they retreated to their earlier levels in less than an hour.

"Every other time this has happened, it wasn't worth the positive market move," said Kristina Hooper, chief global market strategist for Invesco. "Investors...are a lot more skeptical this time around, having been burned a few times with false optimism about positive trade developments."

Many experts feel that China will make substantial concessions to resolve the trade impasse, possibly over the next few months. Hooper disagrees, saying China is preparing for a long dispute by ramping up government spending. She notes that unlike U.S. politicians, Chinese President Xi Jinping doesn't have to worry about facing voters.

CHIPPED FINISH: Goldman Sachs analyst Mark Delaney downgraded Micron Technology stock to "Neutral" and said he expects weaker market conditions for several types of computer chips.

Micron fell 5 percent to $41.10 while Texas Instruments lost 2 percent to $103.91 and Nvidia slipped 2.4 percent to $266.26.

APPLE SPOTLIGHT: Apple unveiled new iPhones with larger screens on Wednesday, and also said new Apple Watches will have larger screens and new health-monitoring features.

Apple tends to trade lower on the days it announces new products, and it fell 1.5 percent to $220.54 Wednesday. It's up 30 percent in 2018, however.

As the Apple Watch updates were announced, shares of fitness tracker company Fitbit slumped 6.1 percent to $5.58 in heavy trading.

ENERGY SURGE: Oil and gasoline prices jumped Tuesday as Hurricane Florence drew nearer to the East Coast and the U.S. government said it's seeing signs that oil shipments from Iran are down. The U.S. is getting ready to put sanctions on Iran's oil industry and has been pressing other countries to reduce their imports as well. That follows the U.S.' withdrawal from the Iran nuclear deal in May.

Wholesale gasoline prices rose 1 percent to $2.03 a gallon. It jumped almost 3 percent the day before.

Heating oil added 0.3 percent to $2.26 a gallon and natural gas remained at $2.83 per 1,000 cubic feet.

FDA WARNING: Cigarette makers jumped after the Food and Drug Administration said it is looking at steps to combat "an epidemic" of e-cigarette use by teenagers, and said companies need to address the problem or risk having their flavored products pulled off the market.

Altria Group jumped 6.4 percent to $63.28 and Philip Morris International rose 3.3 percent to $80.

PRICES DOWN: The Labor Department said wholesale prices unexpectedly dipped in August, the first decline in a year and a half. That's a sign inflation pressures could be easing. The agency's producer prices index slipped 0.1 percent in August, although it's up 2.8 percent over the last year.

The department said transportation and warehousing service prices fell for the month.

The dollar weakened and interest rates dipped, which put pressure on bank stocks. The yield on the 10-year Treasury note fell to 2.96 percent from 2.98 percent.

METALS: Gold rose 0.7 percent to $1,210.90 an ounce. Silver added 1 percent to $14.29 an ounce. Copper climbed 2.1 percent to $2.68 a pound.

CURRENCIES: The dollar fell to 111.22 yen from 111.59 yen. The euro rose to $1.1632 from $1.1586.

OVERSEAS: France's CAC 40 gained 0.9 percent while the British FTSE and the DAX in Germany both rose 0.5 percent.

Japan's benchmark Nikkei 225 lost 0.3 percent, and the Kospi in South Korea was almost flat. Hong Kong's Hang Seng index was 0.3 percent lower.

____

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.
Prosecutor: Border Patrol agent went on 2-week killing spree
Texas state troopers have arrested a U.S. Border Patrol supervisor who they accuse of going on a two-week serial killing spree
10:14PM ( 43 minutes ago )
The Latest: Record flooding expected on Cape Fear River
Record flooding expected on North Carolina's Cape Fear River in coming weeks after persistent heavy rains from Florence
9:49PM ( 1 hour ago )
Tracy's FG on final play lifts No. 12 LSU over No. 7 Auburn
Cole Tracy kicked a 42-yard field goal on the final play to lift No. 12 LSU to a 22-21 victory over No. 7 Auburn
9:37PM ( 1 hour ago )
Associated Press (AP)
The Latest: Utility: Slope collapses at coal ash landfill
Duke Energy says heavy rains from Florence have caused a slope to collapse at a coal ash landfill at a closed power station outside Wilmington, North Carolina
8:26PM ( 2 hours ago )
The Latest: Florence crossing South Carolina, still a threat
The core of Tropical Storm Florence now drifting west over South Carolina, threatening more flash floods and major river flooding
7:58PM ( 2 hours ago )
Investigator: No evidence gas explosions intentional
A federal investigator says there's no evidence to suggest the gas explosions that rocked communities north of Boston were intentional.
6:12PM ( 4 hours ago )
AP Business
Egypt court returns ex-president Mubarak's 2 sons to prison
Egyptian court sends Mubarak's 2 sons back to prison in with inside trading charges
12:05PM ( 10 hours ago )
Seahawks sign LB Mychal Kendricks despite legal troubles
The Seattle Seahawks signed linebacker Mychal Kendricks despite his recent guilty plea on insider trading charges
7:43PM ( 1 day ago )
Met Opera to start Sunday performances in 2019-20
The Metropolitan Opera in New York City will start regular Sunday afternoon performances for the first time in its century-plus history during the 2019-20 season
7:09PM ( 1 day ago )
AP Business - Corporate News
Deluged by Hurricane Matthew, rural town waits for Florence
A rural town, battered by the collapse of its blue-collar economy and then by Hurricane Matthew, might also bear the brunt of Florence
11:43AM ( 11 hours ago )
Kobach aims to drive out migrants living in Kansas illegally
Republican Kris Kobach says Kansas is spending $377 million a year on benefits for immigrants living in the state illegally, and he promises to put a stop to it if he's elected governor
6:06PM ( 1 day ago )
Small-company stocks shine on an otherwise ho-hum day
Small-company stocks did better than the rest of the market on what turned out to be an indecisive day of trading on Wall Street.
4:45PM ( 1 day ago )
AP Business - Economy
Stocks continue to rise on hopes for trade war cease-fire
Global stock markets are up again on hopes that the United States and China will call time-out in their escalating trade feud.
7:20AM ( 1 day ago )
Bank of England chief issues another Brexit warning
The Bank of England governor has warned senior government ministers of the severe economic problems that would be created if Britain leaves the European Union without a deal on future relations.
7:05AM ( 1 day ago )
Global shares continue rally after Wall Street gains
Global shares are mostly higher, continuing their rally after gains on Wall Street and hopes that regional trade tensions may ease
4:43AM ( 1 day ago )
AP Business - Financial Markets
Former Colorado nuke site opens to public as wildlife refuge
Cyclists and hikers are exploring a newly opened wildlife refuge at the site of a former nuclear weapons plant in Colorado
3:53PM ( 7 hours ago )
Typhoon kills 12 in Philippines, heads to southern China
Typhoon Mangkhut has lashed the northern Philippines with destructive winds and heavy rain that set off landslides and destroyed homes, leaving at least 12 people dead and six missing
10:59AM ( 11 hours ago )
Powerful typhoon lashes Philippines, killing at least 12
Typhoon Mangkhut has lashed the northern Philippines with destructive winds and heavy rain that set off landslides and destroyed homes, leaving at least 12 people dead and six missing
9:43AM ( 13 hours ago )
AP Business - Industries
Everyone wants answers: Mass., feds hunt for gas blast cause
Investigators are working to pinpoint the cause of a series of dramatic natural gas explosions that killed a teenager, injured at least 25 others and left dozens of homes in smoldering ruins
6:00PM ( 1 day ago )
An old problem: Aging pipelines lead to deadly explosions
Many wonder what they can do to protect themselves after Thursday's stunning explosions in Lawrence, Mass., that left one dead and at least 25 others injured
5:46PM ( 1 day ago )
Officials work to pinpoint cause of 'Armageddon'-like blasts
Investigators are working to pinpoint the cause of a series of dramatic natural gas explosions that killed a teenager, injured at least 25 others and left dozens of homes in smoldering ruins
1:26PM ( 1 day ago )
AP Business - Utilities
Prosecutor: Border Patrol agent went on 2-week killing spree
Texas state troopers have arrested a U.S. Border Patrol supervisor who they accuse of going on a two-week serial killing spree
10:14PM ( 43 minutes ago )
The Latest: Record flooding expected on Cape Fear River
Record flooding expected on North Carolina's Cape Fear River in coming weeks after persistent heavy rains from Florence
9:49PM ( 1 hour ago )
Tracy's FG on final play lifts No. 12 LSU over No. 7 Auburn
Cole Tracy kicked a 42-yard field goal on the final play to lift No. 12 LSU to a 22-21 victory over No. 7 Auburn
9:37PM ( 1 hour ago )
Typhoon aims at south China after killing 12 in Philippines
Typhoon Mangkhut (MAHN'-koot) is roaring toward Hong Kong and southern China after ravaging across the northern Philippines with ferocious winds and heavy rain that left at least 12 dead in landslides and collapsed houses
9:36PM ( 1 hour ago )
Cinch of a clinch: Indians win third straight division title
Indians win third straight AL Central title, rout Tigers 15-0
9:32PM ( 1 hour ago )