Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Stocks Sink Early Wednesday            04/25 09:16

   U.S. stocks are slumping Wednesday after a steep drop the day before as 
investors continued to worry that growing costs for critical materials along 
with rising interest rates will affect profit growth for companies. 

   NEW YORK (AP) -- U.S. stocks are slumping Wednesday after a steep drop the 
day before as investors continued to worry that growing costs for critical 
materials along with rising interest rates will affect profit growth for 
companies. Stock indexes in Europe and Asia are also taking losses. U.S. bond 
yields are rising again.

   KEEPING SCORE: The S&P 500 index tumbled 14 points, or 0.6 percent, to 2,619 
as of 10 a.m. Eastern time. The Dow Jones industrial average lost 137 points, 
or 0.6 percent, to 23,886. The 30-stock index has fallen for five days in a 
row. The Nasdaq composite declined 68 points, or 1 percent, to 6,939. The 
Russell 2000 index of smaller-company stocks dipped 11 points, or 0.8 percent, 
to 1,541.

   PAYING THE COST: Stocks slumped Tuesday after heavy machinery maker 
Caterpillar said it doesn't expect to top its first-quarter earnings for the 
rest of this year. Company profits fuel the stock market, and when they are 
rising, stocks tend to do well. Investors expected strong profit growth this 
year thanks to the growing global economy and the corporate tax cut President 
Donald Trump signed at the end of 2017. That sent stocks to record highs in 
January.

   But the comments from Caterpillar's executives, as well as from other major 
companies like 3M and Sherwin-Williams, had investors worrying about whether 
that growth will show up. On Wednesday Goodyear Tire & Rubber said higher raw 
materials costs and weaker demand hurt its business in the first quarter. Its 
stock fell 5.6 percent to $25.37.

   Industrial companies continued to struggle. Defense contractor General 
Dynamics shed 5.6 percent to $209.50 after its first-quarter report and 
Northrop Grumman sank 6.5 percent to $319.45.

   Aerospace company Boeing was an exception, as it topped Wall Street's 
estimates and raised its forecasts for the year. Boeing rose 1.1 percent to 
$332.58.

   BONDS: Investors may have also been worried about rising interest rates, as 
they tend to slow down economic growth by making it more expensive for people 
and companies to borrow money. Bond prices fell again Wednesday, sending yields 
higher. The yield on the 10-year Treasury note kept setting four-year highs as 
it rose to 3.02 percent from 3 percent.

   Low interest rates have played an important role in the economic recovery of 
the last decade, and the yield on the 10-year note is a benchmark for many 
kinds of interest rates including mortgages. It's been climbing because 
investors expect higher economic growth and inflation.

   While rising rates usually mean bigger profits for banks, those stocks 
struggled Wednesday. Capital One lost 3.3 percent to $94.19 after its 
first-quarter report. Investment bank Morgan Stanley fell 1.9 percent to $52.05.

   SKY TUSSLE: Media conglomerate Comcast offered to buy British broadcaster 
Sky for 22 billion pounds ($30 billion). Sky had previously accepted an offer 
from 21st Century Fox, and its shares gained 3.6 percent in London. Comcast 
rose 1.6 percent to $33.85 and Fox gained 1.1 percent to $36.42.

   OVERSEAS: France's CAC 40 was down 0.9 percent while Germany's DAX fell 1.6 
percent. Britain's FTSE 100 lost 1.2 percent. Japan's benchmark Nikkei 225 shed 
0.3 percent. Hong Kong's Hang Seng lost 1.1 percent and South Korea's Kospi 
lost 0.6 percent.

   CURRENCIES: The dollar rose to 109.17 yen from 108.67 yen. The euro fell to 
$1.2188 from $1.2237.

   COMMODITIES: Benchmark U.S. crude oil rose 8 cents to $67.78 in New York. 
Brent crude, used to price international oils, fell 27 cents to $73.59 a barrel 
in London.

   Gold fell 0.7 percent to $1,324.10 an ounce and silver sank 0.8 percent to 
$16.57 an ounce.

   ____ 



(BE)

 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN