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Business
Banks, health care
companies weigh on US
stock indexes
By ALEX VEIGA, AP Business Writer
Major U.S. stock indexes were mostly lower in midday trading Monday as losses in banks and health care companies out- weighed gains elsewhere. Energy companies also fell along with the price of crude oil. Technology companies rebounded after an early tumble. Smaller companies were doing better than the rest of the market. Toy mak- ers slumped after Hasbro’s latest quarterly results disappointed investors.
KEEPING SCORE: The S&P 500 index fell 8 points, or 0.3 percent, to 2,758 as of noon Eastern Time. The Dow Jones Indus- trial Average lost 129 points, or 0.5 percent, to 25,315. The Nasdaq gained 32 points, or 0.4 percent, to 7,481. The Russell 2000 index of smaller-company stocks picked up 7 points, or 0.5 percent, to 1,549.
EARNINGS SEASON: Investors have been worried in recent weeks about poten- tial threats to corporate growth, including rising interest rates, trade tensions between the U.S. and China, and some sluggish re- ports about housing construction and sales.
This week marks the peak of the quarterly earnings calendar as many big-name com- panies report their latest results, including Caterpillar, Amazon and Google’s parent company, Alphabet.
“The earnings results have the potential to stabilize the market, but what investors are really keen on hearing from companies is what the sustainability of the earnings outlook is, especially in light of the concerns of the potential impact from tariffs,” said Laura Kane, head of Investment Themes Americas at UBS Wealth Management Research.
FINANCIALS SLIDE: Banks and other financial companies took losses. Synchrony
Financial fell 3.5 percent to $30.26. BROKEN TOYS: Hasbro slumped 5.2 percent to $92.97 after the toy maker re-
ported disappointing third-quarter results, partly due to lost sales following the demise of Toys R Us. Hasbro also said it will cut jobs as it deals with the effects of Toys R
Us bankruptcy. Rival Mattel also declined, shedding 1.8 percent to $13.97.
ON THE HOT SEAT: Lennox Interna- tional shares fell 1.6 percent to $190.10 after the maker of residential heating and cooling products reported quarterly revenue that fell short of analysts’ forecasts. The com- pany also lowered its fiscal year earnings estimate.
COSTLY DELAY: Bristol-Myers Squibb declined 5.5 percent to $51.29 after the drugmaker said regulators want three more months to review data from a potential lung cancer treatment regimen.
TECH BOUNCE: After a sluggish start, technology stocks rebounded in morning trading. Advanced Micro Devices climbed 7.1 percent to $25.35.
GOOD CHEMISTRY: Jacobs Engineer- ing Group climbed 6.5 percent to $76.96. af-
ter the company agreed to sell its chemicals and resources business to WorleyParsons of Australia for $3.3 billion in cash and stock.
ENERGY: Benchmark U.S. crude fell 0.1 percent to $69.02 per barrel in New York. Brent crude, used to price international oils, was flat at $79.72 per barrel in London.
The slide in oil prices weighed on energy stocks. Halliburton fell 2.2 percent to $36.73.
BOND YIELDS: Bond prices were little changed. The yield on the 10-year Treasury held at 3.19 percent.
CURRENCY: The dollar strengthened to 112.82 yen from 112.60 yen on Friday. The euro fell to $1.1469 from $1.1510.
MARKETS OVERSEAS: Germany’s DAX slipped 0.3 percent and France’s CAC-40 lost 0.6 percent. Britain’s FTSE 100 fell 0.1 percent. In Asia, the Hang Seng in Hong Kong surged 2.3 percent, while Japan’s Nik- kei 225 index reversed early losses, gaining 0.4 percent. The Kospi in South Korea added 0.3 percent. Australia’s S&P-ASX 200 countered the trend, shedding 0.6 percent. Shares rose in Taiwan, Singapore and Indo- nesia, but fell in Thailand.
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