pcloudy.png
Friday July 19th, 2019 9:06AM

US stock indexes turn mixed in morning trading

By The Associated Press
Related Articles
  Contact Editor

Major U.S. stock indexes were mixed in morning trading Tuesday, leaving the broader market little changed after a two-day losing streak.

Wall Street got off to a weak start for the third straight day as it continued to pull back following a run of record highs last week. Investors have turned cautious as they look for signs of how far the Federal Reserve might cut interest rates after upbeat economic data in recent days.

The market rallied through much of June after the Fed signaled that it's prepared to cut interest rates to offset slowing global growth and the fallout from U.S. trade conflicts. But an unexpectedly strong U.S. jobs report Friday has dimmed investors' expectations that the Fed will cut its benchmark interest rate by as much as half a percentage point later this month.

Many investors still expect a cut of a quarter percentage point, but fewer are now expecting a half-point reduction.

Investors will be listening closely for any hints on the central bank's interest rate policy on Wednesday and Thursday, when Fed Chair Jerome Powell delivers the Fed's semi-annual monetary report to Congress.

Industrials, consumer staples and materials stocks declined. 3M slid 2.5%, Constellation Brands dropped 2.1% and Mosaic fell 3.5%.

The losses in those sectors were partially offset by gains in communications services and technology stocks. Netflix rose 1.9% and chipmaker Advanced Micro Devices climbed 2.7%.

Banks also rose as bond prices fell, lifting the yield on the 10-year Treasury note to 2.05% from 2.03% late Monday. When bond yields rise, they drive interest rates higher, making mortgages and other loans more profitable for banks. SunTrust Banks gained 1.3%.

KEEPING SCORE: The S&P 500 was down less than 0.1% as of 11:26 a.m. Eastern time. The Dow Jones Industrial Average slid 81 points, or 0.3%, to 26,724. The Nasdaq composite, which his heavily weighted with technology companies, rose 0.3%, while the Russell 2000 index of smaller company stocks dropped 0.4%.

Major stock indexes in Europe headed lower.

EYE ON THE FED: The Fed's benchmark interest rate currently stands in a range of 2.25% to 2.5% and the central bank has not cut rates since the Great Recession in 2008. Last year, Fed officials raised rates four times, in part to stave off the risk of high inflation and in part to try to ensure that they would have room to cut rates if the economy stumbled.

On Friday, the Fed emphasized that it would act as necessary to sustain the economic expansion, while noting that most Fed officials have lowered their expectations for the course of rates. The Fed's statement came in its semiannual report on monetary policy.

TECH BUYOUT: Acacia Communications jumped 35% after the company agreed to be acquired by Cisco Systems.

APPETIZING DEAL: TreeHouse Foods rose 1.4% after the company said it has reached a deal to sell its snack division to Atlas Holdings for $90 million.

BOND YIELD FALLOUT: Rising bond yields weighed on homebuilder stocks. The pickup in bond yields pushes up interest rates on mortgages, making home loans more expensive for would-be homebuyers. Hovnanian Enterprises dropped 3.8%.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
H. Ross Perot rose from poverty to self-made billionaire
H. Ross Perot rose from a childhood of Depression-era poverty to become a self-made billionaire who twice ran for president with a mixture of folksy sayings and simple solutions to America's problems
11:40AM ( 6 minutes ago )
Dems want Acosta to quit for role in financier's sex plea
Senate Minority Leader Chuck Schumer and a growing collection of congressional Democrats say President Donald Trump's labor secretary should quit
11:40AM ( 6 minutes ago )
US stock indexes turn mixed in morning trading
Major U.S. stock indexes are mixed in morning trading, leaving the broader market little changed after a two-day losing streak
11:32AM ( 14 minutes ago )
Associated Press (AP)
Twitter bans 'dehumanizing' posts toward religious groups
Twitter will now prohibit hate speech that targets religious groups using dehumanizing language
11:09AM ( 36 minutes ago )
France will implement an 'ecotax' on plane tickets from 2020
The French government will implement an "ecotax" on plane tickets for flights departing from France from next year
11:07AM ( 38 minutes ago )
French tycoon acquitted of fraud in huge arbitration case
A court has acquitted French tycoon Bernard Tapie of fraud over a 404 million-euro ($452.5 million at the current exchange rate) payment linked to the sale of sportswear company Adidas in the 1990s
11:03AM ( 42 minutes ago )
AP Business
US stocks fall in early trading, extending recent losses
Technology and industrial companies are helping to pull stocks lower on Wall Street in early trading, extending losses from a day earlier
10:18AM ( 1 hour ago )
Spain still stuck in political deadlock as party talks fail
Spain's center-left Socialist leader Pedro Sánchez has failed to win the support of the far-left We Can party for his bid to form a government, prolonging the political limbo in the eurozone's fourth largest economy
9:08AM ( 2 hours ago )
Powell says bank stress tests need to keep evolving
Fed Chairman Powell says annual bank stress tests, while successful, will need to keep evolving
9:07AM ( 2 hours ago )
AP Business - Economy
Asian shares retreat ahead of Fed statement to Congress
Asian shares retreat as investors await signs of direction for U.S. interest rates
12:32AM ( 11 hours ago )
Greece creditors say no changes in bailout terms for new PM
Greece's bailout creditors have bluntly rejected calls from the country's new conservative government to ease draconian budget conditions agreed as part of its rescue program
5:17PM ( 18 hours ago )
US stocks drop as traders weigh odds for steep Fed rate cut
Technology and health care companies drove U.S. stocks to a lower finish Monday as the market pulled back from recent highs for the second straight day
5:01PM ( 18 hours ago )
AP Business - Financial Markets
23 US governors join Calif. in opposing Trump mileage freeze
Citing climate-damaging tailpipe emissions, 23 US governors sign a pledge backing California leaders in their showdown with the Trump administration over its plans to relax vehicle mileage standards
6:00AM ( 5 hours ago )
Iran breaches key uranium enrichment limit in nuclear deal
Iran begins enriching uranium to 4.5%, breaking the limit set by its 2015 nuclear deal with world powers
7:22PM ( 16 hours ago )
Trump promotes environmental record despite rollbacks
President Donald Trump is promoting what he's calling his "environmental leadership" despite strong skepticism from environmental advocates
6:00PM ( 17 hours ago )
AP Business - Industries
Turkish currency drops after central bank chief is fired
Turkey's currency has fallen sharply, reawakening concerns of another bout of financial jitters in the country, after President Recep Tayyip Erdogan fired the central bank governor
6:46AM ( 1 day ago )
Global stocks sink after US jobs data hurt rate cut hopes
Global stocks decline after robust US employment data temper hopes Fed might cut rates
6:26AM ( 1 day ago )
Turkish lira weakens after central bank chief is fired
The Turkish lira has dropped by around 2% against the dollar after President Recep Tayyip Erdogan fired the central bank governor reportedly over disagreements on interest rate cuts
3:58AM ( 1 day ago )
AP Business - Financial Services
H. Ross Perot rose from poverty to self-made billionaire
H. Ross Perot rose from a childhood of Depression-era poverty to become a self-made billionaire who twice ran for president with a mixture of folksy sayings and simple solutions to America's problems
11:40AM ( 6 minutes ago )
Dems want Acosta to quit for role in financier's sex plea
Senate Minority Leader Chuck Schumer and a growing collection of congressional Democrats say President Donald Trump's labor secretary should quit
11:40AM ( 6 minutes ago )
The Latest: Barr won't recuse himself from NY Epstein case
Attorney General William Barr has consulted with Justice Department ethics officials and will not recuse himself from overseeing the case of billionaire financier Jeffrey Epstein by federal prosecutors in New York
11:32AM ( 14 minutes ago )
Former Argentine President De la Rua dies at 81
Former Argentine President Fernando De la Rúa, who attracted voters with his image as an honest statesman and later left as the country plunged into its worst economic crisis, has died at age 81
11:26AM ( 20 minutes ago )
Chasing an 8th Wimbledon title, Williams beats Riske in 3
When Serena Williams' serve wasn't getting her all the points she needed at Wimbledon, she turned to her return game
11:21AM ( 25 minutes ago )