comscore U.S. stocks slip as energy companies and banks skid | Honolulu Star-Advertiser
Every act of aloha counts. Click here to DONATE to the MAUI RELIEF Fund.
Business Breaking

U.S. stocks slip as energy companies and banks skid

Honolulu Star-Advertiser logo
Unlimited access to premium stories for as low as $12.95 /mo.
Get It Now

    U.S. stocks are lower early Tuesday, May 30, 2017, as energy companies once again slump with the price of oil and banks slide in tandem with bond yields and interest rates.

NEW YORK >> U.S. stocks are lower Tuesday as energy companies once again slump with the price of oil and banks slide in tandem with bond yields and interest rates. Technology companies and consumer-focused companies continue to climb and briefly surpassed $1,000 a share for the first time. The losses threaten a seven-day winning streak for major stock indexes.

KEEPING SCORE: The Standard & Poor’s 500 index lost 3 points, or 0.1 percent, to 2,412 as of 11:30 a.m. Eastern time. The Dow Jones industrial average fell 42 points, or 0.2 percent, to 21,037. The Nasdaq composite dipped 6 points, or 0.1 percent, to 6,204. The Russell 2000 index of smaller-company stocks tumbled 9 points, or 0.7 percent, to 1,372. About two-thirds of the stocks on the New York Stock Exchange were trading lower around midday.

The Standard & Poor’s 500 and Nasdaq have both risen for seven days in a row, and both closed at record highs Friday.

ENERGY: Benchmark U.S. crude lost 63 cents, or 1.3 percent, to $49.17 a barrel in New York. Brent crude, the international standard, fell 85 cents, or 1.6 percent, to $51.79 a barrel in London. Hess dropped $1.58, or 3.3 percent, to $46.57 and Exxon Mobil shed 37 cents to $81.18. The S&P 500 index of energy companies reached its lowest level in a year.

BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.23 percent from 2.25 percent late Friday. When bond yields decrease, interest rates fall along with them, and that reduces the profits banks can make from mortgages and other loans. PNC Financial Services gave up $2.05, or 1.7 percent, to $119.27 and JPMorgan Chase declined 72 cents to $84.64.

TURBULENCE: International airlines slumped as the government considered expanding a ban on laptops from the passenger cabins of flights to the United States. In March the Trump administration said passengers flying from 10 cities, mostly in the Middle East, could not bring laptops, tablets and some other devices in the cabins and had to check them instead. On Sunday, Homeland Security Secretary John Kelly said that ban might be expanded to all international flights to and from the U.S.

It’s not clear how that might affect business travel, and Delta lost $1.50, or 3 percent, to $49.30. United Continental slid $1.81, or 2.2 percent, to $79.44 and American gave up 69 cents, or 1.4 percent, to $48.06.

DEALING: E-commerce and payment services company First Data said it will buy payment processing company CardConnect for $15 a share in cash, or about $468 million. CardConnect’s stock climbed $1.38, or 10.1 percent, to $15.03 and First Data picked up 13 cents to $16.77.

Offshore drilling contractor Atwood Oceanics jumped after it agreed to be bought by Ensco PLC for $10.72 a share in stock, or $863 million. Atwood rose $2.03, or 25.1 percent, to $10.11 while U.K.-based Ensco lost 28 cents, or 4.2 percent, to $6.42.

Cloud-based incentives company Xactly agreed to be taken private by Vista Equity Partners in a deal that values it at $15.65 a share, or $499 million. Its stock added $2.20, or 16.4 percent, to $15.60.

AMAZON MILESTONE: Online retail giant traded above $1,000 a share for the first time, peaking at $1,001.20 shortly after the market opened. Later it traded at $998.40, up $2.62 from Frida’s close. The only other S&P 500 company valued at more than $1,000 a share is travel booking site Priceline, which traded at about $1,846 on Tuesday.

TECH AGAIN ON TOP: Technology companies continued to lead the way. Security software maker Symantec advanced 63 cents, or 2.1 percent, to $30.24. Chipmaker Nvidia gained $3.27, or 2.3 percent, to $145.11 and Micron Technology rose 70 cents, or 2.4 percent, to $30.46.

CONSUMERS: The Commerce Department said consumer spending grew 0.4 percent in April, another hint that the economy is rebounding after a sluggish start to this year. Consumer spending is responsible for 70 percent of economic activity. An important measurement of inflation rose in April and it’s up 1.7 percent in the last year. That’s still below the Federal Reserve’s target of 2 percent.

The Conference Board, a business research group, said consumers were slightly less confident in May for the second month in a row. However they remain optimistic by historical standards.

CURRENCIES: The dollar declined to 110.86 yen from 111.19 yen. The euro rose to $1.1184 from $1.1176.

OVERSEAS: The FTSE 100 index in Britain fell 0.3 percent and the French CAC 40 sank 0.6 percent. Germany’s DAX dipped 0.2 percent. In Japan, the Nikkei 225 finished nearly flat and South Korea’s Kospi dropped 0.4 percent. Markets in Hong Kong were closed for a holiday.

Comments (0)

By participating in online discussions you acknowledge that you have agreed to the Terms of Service. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. If your comments are inappropriate, you may be banned from posting. Report comments if you believe they do not follow our guidelines.

Having trouble with comments? Learn more here.

Click here to see our full coverage of the coronavirus outbreak. Submit your coronavirus news tip.

Be the first to know
Get web push notifications from Star-Advertiser when the next breaking story happens — it's FREE! You just need a supported web browser.
Subscribe for this feature

Scroll Up