Stocks Slip From Highs 02/22 16:33
U.S. stocks slipped Wednesday after their recent record-setting run. Energy
companies stumbled, but basic materials makers rose as investors hoped two
large deals will win approval from regulators.
NEW YORK (AP) -- U.S. stocks slipped Wednesday after their recent
record-setting run. Energy companies stumbled, but basic materials makers rose
as investors hoped two large deals will win approval from regulators.
While energy stocks fell with the price of oil, most other sectors didn't
make big moves. Technology companies eked out a small gain. They have risen
every day this month to reach their highest mark since 2000. DuPont and Dow
Chemical rose after Reuters reported that European officials could approve
their merger soon. The Dow Jones industrial average made its ninth straight
After an extended streak of gains, investors didn't make many big moves.
They spent most of the day waiting for the minutes from the Federal Reserve
meeting three weeks ago, but those minutes contained few surprises. Bond prices
rose and yields dipped.
Kate Warne, an investment strategist for Edward Jones, said the Fed's
decision-makers are also waiting to learn more about the Trump administration's
policy proposals and Congress' reaction to them. That might take a few months.
Meanwhile investors, too, will wait.
"They want to see the data, they want to see more on inflation, and they
would like more certainty about any fiscal policy changes," she said.
The Dow average rose 32.60 points, or 0.2 percent, to 20,775.60. The
Standard & Poor's 500 index lost 2.56 points, or 0.1 percent, to 2,362.82. The
Nasdaq composite shed 5.32 points, or 0.1 percent, to 5,860.63. The Russell
2000 index of small-company stocks slid 6.49 points, or 0.5 percent, to
1,403.86. More stocks fell than rose on the New York Stock Exchange.
All four indexes closed at record highs Tuesday.
DuPont climbed $2.63, or 3.4 percent, to $79.80 and Dow Chemical gained
$2.45, or 4 percent, to $63.67. Reuters reported that regulators in the
European Union are close to approving their $62 billion combination. Antitrust
officials in the U.S. and elsewhere would still have to approve that deal.
Investors appeared to grow more optimistic about a second deal in the
chemicals industry: Monsanto, which has accepted a $57 billion offer from Bayer
but is also waiting for regulatory approval, rose 81 cents to $111.38.
The minutes from the Federal Reserve meeting showed that officials discussed
the importance of raising their primary interest rate soon, especially if the
economy stays strong. Some Fed officials were worried that if interest rates
stay too low, the expanding economy could cause inflation to rise too fast.
Investors don't generally expect the Fed to raise interest rates at its next
meeting in March. But bond prices changed course and turned higher. The yield
on the 10-year Treasury note fell to 2.41 percent from 2.43 percent late
Energy companies traded lower as benchmark U.S. crude lost 74 cents, or 1.4
percent, to $53.59 a barrel in New York. Brent crude, the standard for pricing
international oils, fell 34 cents to $55.84 a barrel in London.
Oil and gas company Concho Resources slid $9.65, or 6.8 percent, to $131.70
after a weak fourth-quarter report and Newfield Exploration declined $3.42, or
8 percent, to $39.07 as analysts expressed concerns about its forecasts for the
Drugmaker Bristol-Myers Squibb rose 57 cents, or 1 percent, to $55.35 after
the Wall Street Journal reported that billionaire investor Carl Icahn bought a
stake in the company. Icahn has not confirmed his investment. Just a day
earlier, after Bristol-Myers reached a deal with another activist investor,
Jana Partners. It will add three new directors to its board and spend $2
billion to buy back stock. Bristol-Myers stock traded at $75 in early August
but plunged as investors worry that its lung cancer drug Opdivo will lose sales
to other treatments.
Food and consumer products company Unilever rose after it said it will
quickly review its options to find ways to increase value for shareholders.
Kraft Heinz went public Friday with an offer to buy the company for $143
billion, but it withdrew that offer over the weekend after Unilever said it
wasn't big enough. Unilever regained $2.06, or 4.6 percent, to $46.93 after a
7.5 percent skid Tuesday.
Technology companies wavered but finished with a small gain thanks to
Facebook, which jumped $2.40, or 1.8 percent, to $136.12. The S&P 500's
technology index has gained ground every day in February and is up 10 percent
this year. That index is at its highest level since July 2000, four months
after the dot-com boom had peaked.
The dollar slipped to 113.12 yen from 113.58 yen. The euro rose to $1.0568
In other energy trading, wholesale gasoline rose 2 cents to $1.51 a gallon.
Heating oil dipped 1 cent to $1.63 a gallon. Natural gas edged up 3 cents to
$2.59 per 1,000 cubic feet.
Gold slipped $5.60 to $1,233.30 an ounce. Silver lost 5 cents to $17.95 an
ounce. Copper fell 1 cent to $2.73 a pound.
Britain's FTSE 100 gained 0.4 percent and Germany's DAX added 0.3 percent.
In France, the CAC 40 picked up 0.1 percent. The Japanese Nikkei 225 finished
unchanged while South Korea's Kospi added 0.2 percent. The Hang Seng index in
Hong Kong jumped 1 percent.