Stock indexes higher in afternoon trading
Alex Veiga AP Business Writer | Hagadone News Network | UPDATED 7 years AGO
Retailers and consumer goods companies led U.S. stock indexes mostly higher in afternoon trading Friday as the market recouped some of its modest losses from a day earlier. Energy companies were the biggest laggard as the price of crude oil declined. Bond yields were hovering near their highest level in more than three years. Investors were monitoring developments in Washington ahead of a possible federal government shutdown this weekend.
The Standard & Poor’s 500 index rose 7 points, or 0.3 percent, to 2,805 as of 2:22 p.m. Eastern Time. The Dow Jones industrial average slid 14 points, or 0.1 percent, to 26,002. The Nasdaq added 32 points, or 0.5 percent, to 7,329. The Russell 2000 index of smaller-company stocks picked up 16 points, or 1 percent, to 1,593. More stocks rose than fell on the New York Stock Exchange. The S&P 500 was on course for its eighth weekly gain in the past nine weeks.
SHOWDOWN: U.S. House lawmakers voted for a stopgap funding bill to keep agency doors open and federal workers at their jobs until mid-February, but Senate Democrats and some Republicans were expected to block it on Friday. A shutdown could hurt consumer spending and rattle markets, though it’s unlikely to cause widespread economic damage, Credit Suisse economists said in a note on Thursday.
“We expect the market to move past it and not to be too caught off guard if that were to happen.” Jeramey Lynch, global investment specialist with J.P. Morgan Private Bank in Michigan, predicting that any federal government shutdown would be brief and cause relatively little disruption, similar to past shutdowns.
Bond prices were little changed. The yield on the 10-year Treasury held at 2.63 percent after briefly rising to the highest level since September 2014.
Investors bid up shares in retailers, cruise lines and other consumer-focused companies. Hanesbrands led the pack, climbing $1.09, or 5 percent, to $23.09.
Tobacco companies, beverage makers and other consumer products stocks rose. Altria Group gained 86 cents, or 1.2 percent, to $70.89. Philip Morris International picked up $3.40, or 3.2 percent, to $108.47.
Lowe’s rose 2.9 percent after the home-improvement supply retailer named three new directors. The stock added $2.90 to $104.26.
Amazon was trading higher after the e-commerce giant said it will raise the price of its Prime membership monthly plan by nearly 20 percent. Starting Friday, new monthly members will pay $12.99 a month, up from $10.99. The stock picked up $8.26 to $1,301.58.
IBM slumped 4.3 percent despite a solid fourth-quarter report. The technology and consulting company was the biggest decliner in the Dow. The stock was down $7.25 to $161.87.
American Express fell 2.9 percent after the credit card issuer suspended its share buy-back program for six months following a big one-time tax charge. The stock shed $2.87 to $96.99.
Oil futures were down after the International Energy Agency said U.S. oil production would rise sharply this year. Benchmark U.S. crude lost 64 cents, or 1 percent, to $63.31 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, fell 59 cents, or 0.9 percent, to $68.72 a barrel.
The decline in oil prices weighed on energy sector stocks. Range Resources slid 58 cents, or 3.5 percent, to $15.89.
Gold rose $5.90 to $1,333.10 an ounce. Silver added 8 cents to $17.04 an ounce. Copper slipped 1 cent to $3.19 a pound.
The dollar fell to 110.61 yen from 111.98 yen on Thursday. The euro weakened to $1.2236 from $1.2242.
The price of bitcoin edged up 0.3 percent to $11,286, according to the tracking site CoinDesk.
Bitcoin futures on the Cboe Futures Exchange were down 4.5 percent to $11,230. The futures allow investors to make bets on the future price of bitcoin.
Major stock indexes in Europe notched gains. Germany’s DAX rose 1.2 percent and France’s CAC 40 added 0.6 percent. Britain’s FTSE 100 gained 0.4 percent. In Asia, Japan’s benchmark Nikkei 225 edged up 0.2 percent, while South Korea’s Kospi gained 0.2 percent. Hong Kong’s Hang Seng ended 0.4 percent higher.
ARTICLES BY ALEX VEIGA AP BUSINESS WRITER
Stock indexes higher in afternoon trading
Retailers and consumer goods companies led U.S. stock indexes mostly higher in afternoon trading Friday as the market recouped some of its modest losses from a day earlier. Energy companies were the biggest laggard as the price of crude oil declined. Bond yields were hovering near their highest level in more than three years. Investors were monitoring developments in Washington ahead of a possible federal government shutdown this weekend.
US indexes are weighed down by industrials, energy stocks
Losses among Boeing, General Electric and other big industrial companies weighed on U.S. stocks Thursday, pulling the market below the record highs it set the day before.