US Stocks Edge Lower 08/20 11:09
Stocks edged lower in midday trading Tuesday, weighed down by a mixed batch
of company earnings and another decline in bond yields.
(AP) -- Stocks edged lower in midday trading Tuesday, weighed down by a
mixed batch of company earnings and another decline in bond yields.
Financial sector stocks accounted for much of the selling as investors
reacted to the decline in yields. The 10-year Treasury note slipped to 1.55%
from 1.59% late Monday. When bond yields fall, it pulls down the interest rates
that banks pocket on mortgages and other consumer loans. Bank of America slid
Household goods makers and communication services stocks were among the
decliners. Energy stocks fell along with the price of crude oil.
Technology stocks, which like banks have tended to lead the market's gains
recently, moved higher, having bounced back from the early slide. Apple rose
1.4% and Broadcom gained 2%.
Despite the overall increase in technology stocks, chipmakers were among the
biggest decliners a day after climbing on news that the U.S. gave Chinese
telecom giant an extension to buy more supplies from U.S. companies. Advanced
Micro Devices fell 1.9% and Nvidia dropped 1.3%.
Home Depot climbed after the home improvement retailer reported earnings
that topped Wall Street's forecasts. But two other big retailers didn't fare as
well. Investors sent Kohl's and TJX lower after their latest quarterly report
cards fell short of analysts' expectations.
The market was coming off a three-day winning streak, the latest twist for
the market, which has been caught in the grips of volatile trading all month.
KEEPING SCORE: The S&P 500 was down 0.3% as of noon Eastern Time. The Dow
Jones Industrial Average slid 57 points, or 0.2%, to 26,079. The Nasdaq, which
is heavily weighted with technology stocks, dropped 0.2%.
LET'S REMODEL: Home Depot jumped 4.4% after the home improvement retailer
reported earnings that topped Wall Street's forecasts. The company also cut its
sales expectations for the year as lumber prices slid and the company braces
for the potential impact of tariffs on its customers.
TURNOUT TROUBLES: Kohl's fell 4.9% after the department store reported a
sharper than expected decline in sales at established locations during the
MIXED RESULTS: Shares in TJX Cos., slid 1.4% after the operator of the T.J.
Maxx, Marshalls, and HomeGoods retail chains said comparable sales growth fell
short of analysts' forecasts. The company also issued a third quarter earnings
outlook that came in below analysts' expectations.
FEELING HEALTHY: Medtronic gained 4% after the medical device maker jumped
past Wall Street's fiscal first quarter financial expectations and raised its
profit forecast for the year.
EYE ON THE ECONOMY: Investors are trying to parse conflicting signals on the
U.S. economy and determine whether a recession is looming. A key concern is
that the escalating and costly trade conflict between the world's two biggest
economies will hamper growth around the globe.
Earlier this month, President Donald Trump announced plans to extend tariffs
across virtually all Chinese imports, many of them consumer products that were
exempt from earlier rounds of tariffs.
Although many of the tariffs have been delayed, the founder of Chinese tech
giant Huawei said Tuesday he expects no relief from U.S. export curbs due to
the political climate in Washington. He expressed confidence the company will
thrive because it develops its own technology.