Thursday December 9th, 2021 12:07AM

Weakness in bank stocks leaves indexes mixed on Wall Street

By The Associated Press
Related Articles
  Contact Editor

Major indexes were little changed in afternoon trading as a drop in bond yields pushed down banks and energy companies. Big technology companies, which benefit from lower bond yields, were slightly higher.

The S&P 500 was down less than 0.1% as of 12:08 p.m. Eastern. The Nasdaq Composite was down 0.3% while the Dow Jones Industrial Average, fell 36 points, or 0.1% to 32,695..

The price of U.S. crude oil dropped 4.7% to $58.69 a barrel, pulling energy companies lower. Energy prices have been steadily climbing this year until recently, as the global economy recovers and oil demand worldwide increases while production remains constrained. Marathon Oil fell 2.9%.

Another drop in long-term bond yields was pulling bank stocks slightly lower. Lower yields mean lower interest rates on loans such as mortgages, and weaker profits for banks. The KBW Bank Index of the 24 largest banks was down 1.5%.

The yield of the 10-year Treasury note fell to 1.65%. The yield was well above 1.70% last week, which had put some pressure on the stock market.

Investors continue to be focused on the future outlook for the U.S. economy as millions of Americans get vaccinated every day. Investors are wavering between optimism that coronavirus vaccines that might allow business and travel to return to normal and fears of higher inflation after struggling economies were flooded with credit and government spending.

“The market feels like it is in this inflection point,” said Darrell Cronk, chief investment officer of Wells Fargo Wealth and Investment Management. “It's a good day for reflection.”

The S&P 500 hit a pandemic-era low exactly one year ago, on March 23, 2020, having dropped nearly 34% in about a month. That wiped out three years’ worth of gains. The index wound up roaring back in the coming months, and recovered all its losses by August. Through Monday, it had surged 76% from that low point.

Cronk said many of the signs in the market point to an early-stage recovery. Interest rates are rising as the economy strengthens, commodities like oil are making steady gains and sectors tied closely to economic growth are doing well. “It's playing out exactly as it should play out.”

Federal Reserve Chairman Jerome Powell said Thursday that while the economy was improving, a recovery is “far from complete.” In testimony to Congress, he said the Fed “will continue to provide the economy the support it needs for as long as it takes.”

Investors have been reassured by Powell’s comment earlier that the Fed’s key interest rate will be kept near zero through 2023 even as inflation is forecast to pick up.

AstraZeneca fell 2.7% after U.S. authorities said that the drug company's COVID-19 vaccination trial data contained “incomplete” information, which may impact its efficacy. AstraZeneca's vaccine is being primarily used in Europe.

One company to watch later will be GameStop, which will report its quarterly results after the closing bell. GameStop has been a stock of great interest to a community of online investors, who pushed the stock to astronomical heights earlier in the year. The stock continues to be extremely volatile, often moving more than 10% on a given day. It was down 3.7% in afternoon trading.


AP Business Writer Stan Choe contributed.

  • 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, AP Business - Utilities
© Copyright 2021
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Boulder supermarket shooter ID'd as 21-year-old man
Police have identified a 21-year-old man as the suspect in the killing of 10 people at a Boulder, Colorado, supermarket
11:30AM ( 14 minutes ago )
EU lawmakers refuse to sign off on border agency's budget
European Union lawmakers are ramping up pressure on the EU's under-fire border and coast guard agency Frontex
11:25AM ( 19 minutes ago )
Weakness in bank stocks leaves indexes mixed on Wall Street
Major indexes were little changed in morning trading as a drop in bond yields pushed down banks and energy companies
11:21AM ( 23 minutes ago )
Associated Press (AP)
Sales of new homes plunged 18.2% in February
Sales of new homes plunged 18.2% in February as severe winter weather in many parts of the country and a lack of supply took a toll on the housing industry
10:13AM ( 1 hour ago )
Reputation of AstraZeneca's COVID vaccine marred by missteps
AstraZeneca’s release of encouraging data about its coronavirus vaccine from its U.S. trial raised hopes that the drug company could put a troubled rollout behind it
9:57AM ( 1 hour ago )
Banks and energy stocks pull major US indexes mostly lower
Banks and energy stocks are leading major U.S. indexes mostly lower in the early going on Wall Street, while gains for some Big Tech companies like Microsoft nudged the Nasdaq slightly higher
9:43AM ( 2 hours ago )
AP Business
The Latest: Dr. Fauci warns of possible virus surge in US
Dr Anthony Fauci is warning a surge of coronavirus cases in Europe could foreshadow a similar surge in the United States
8:41AM ( 3 hours ago )
Overstimulated? Stocks soar 75% in historic 12-month run
It was one year ago that the terrifying free fall for the stock market suddenly ended, ushering in one of its greatest runs
5:32AM ( 6 hours ago )
The Latest: Sinovac: CoronaVac vaccine effective in children
 Sinovac says its COVID-19 vaccine CoronaVac is safe and effective in children ages 3-17
12:53AM ( 10 hours ago )
AP Business - Corporate News
Xi, Kim share messages reaffirming China-N. Korea alliance
The leaders of China and North Korea are reaffirming their traditional alliance following contentious talks between top diplomats from Washington and Beijing and ongoing diplomatic isolation and economic problems in the North that have left it ever-more dependent on the Chinese
8:36AM ( 3 hours ago )
UK jobs market shows further resilience during lockdown
Britain’s jobs market showed further resilience in February even though the country has been in one of the world’s most stringent lockdowns
6:46AM ( 4 hours ago )
China-Europe sanctions fight shatters image of amicable ties
China looked to Europe as an amicable partner as the continent’s leaders resisted being drawn into President Donald Trump’s conflicts with Beijing over trade, technology and human rights
6:18AM ( 5 hours ago )
AP Business - Economy
Turkish lira plummets after Erdogan fires central bank chief
The Turkish currency has plummeted against the U.S. dollar after President Recep Tayyip Erdogan fired the central bank governor over the weekend for hiking interest rates
2:14PM ( 21 hours ago )
Fed's Powell: Public should understand risks of Bitcoin
Federal Reserve Chair Jerome Powell said Monday that the U.S. public needs to understand the risks behind Bitcoin and other cryptocurrencies, even as the central bank itself is studying the potential costs and benefits of a digital dollar
2:08PM ( 21 hours ago )
Stocks rise slightly as investors closely watch bond market
Stocks were slightly higher in afternoon trading Monday as a modest drop in bond yields was helping lift the broader market
12:52PM ( 22 hours ago )
AP Business - Financial Markets
Resident killed in fire at New York assisted living facility
Authorities say a resident has been killed and two firefighters have been injured in a fire at an assisted living facility in New York that prompted an evacuation and led to the partial collapse of the building
8:17AM ( 3 hours ago )
The Latest: Vaccine alliance to set aside up to 100M doses
Vaccine distribution alliance Gavi says it plans to set aside up to 100 million COVID-19 vaccine doses this year for emergency situations and people in conflict zones
7:54AM ( 3 hours ago )
Putin's COVID-19 vaccination to be kept out of public eye
Russian President Vladimir Putin “doesn’t like” the idea of getting vaccinated against COVID-19 on camera and will be getting his shot out of the public eye on Tuesday, his spokesman says
7:43AM ( 4 hours ago )
AP Business - Industries
Greece orders private doctors to join COVID-19 battle
Greece’s health minister is requisitioning the services of private sector doctors from certain specialties in the wider Athens region to help fight a renewed surge in coronavirus infections that is straining hospitals to their limits
12:44PM ( 23 hours ago )
Fox weather forecaster Dean turns into fierce Cuomo critic
Fox News senior meteorologist Janice Dean has turned into one of New York Gov. Andrew Cuomo's fiercest critics after both of her in-laws died of the coronavirus last spring in elderly care facilities
8:59AM ( 1 day ago )
The Latest: Bells toll to honor Czech virus victims
Bells have tolled across the Czech Republic at noon to honor those who have died of COVID-19 in one of the hardest-hit European Union countries
7:52AM ( 1 day ago )
AP Business - Health Care
Saudi Arabia offers cease-fire plan to Yemen rebels
Saudi Arabia has offered a cease-fire proposal to Yemen’s Houthi rebels that includes reopening their country’s main airport in the kingdom’s latest attempt to halt years of fighting in a war that has sparked the world’s worst humanitarian crisis
1:27PM ( 22 hours ago )
Oil giant Saudi Aramco sees 2020 profits drop to $49 billion
Saudi Arabia’s state-backed oil giant Aramco says its profits nearly halved in 2020 to $49 billion
5:35AM ( 2 days ago )
Feds want to fix canal, but Nevada town lives off the leaks
A rural Nevada town founded a century ago by pioneers lured to the West by the promise of free land and cheap water is suing the U.S. government over the way it plans to renovate a 115-year-old earthen irrigation canal
1:27PM ( 2 days ago )
AP Business - Utilities
Boulder supermarket shooter ID'd as 21-year-old man
Police have identified a 21-year-old man as the suspect in the killing of 10 people at a Boulder, Colorado, supermarket
11:30AM ( 14 minutes ago )
EU lawmakers refuse to sign off on border agency's budget
European Union lawmakers are ramping up pressure on the EU's under-fire border and coast guard agency Frontex
11:25AM ( 19 minutes ago )
At least 15 found dead after Bangladesh Rohingya camp blaze
Rescuers have recovered at least 15 charred bodies from a Rohingya refugee camp in southern Bangladesh after a devastating fire
11:19AM ( 25 minutes ago )
Photos of migrant detention highlight Biden's border secrecy
President Joe Biden’s administration has tried for weeks to keep the public from seeing images from the border like those released Monday
11:09AM ( 35 minutes ago )
Fire at assisted living home kills 1; firefighter missing
A fire at an assisted living home in suburban New York has killed one resident and sent two firefighters and multiple residents to hospitals
11:04AM ( 39 minutes ago )