US Stocks Edge Lower 07/16 09:45
U.S. stocks edged lower as investors assessed a mixed bag of corporate
earnings and economic reports.
NEW YORK (AP) -- U.S. stocks edged lower as investors assessed a mixed bag
of corporate earnings and economic reports.
Technology companies led the broader market lower with the heaviest declines
coming from chipmakers. Intel fell 1.4% and Texas Instruments fell 1.5%.
Johnson & Johnson led health care stocks lower, despite topping Wall
Street's financial forecasts. Energy companies also fell broadly.
A surprisingly good retail sales report for June had little impact on
consumer product makers, though it did help push bond prices lower. The yield
on the 10-year Treasury rose to 2.13%.
Industrial companies fared the best in early trading. Union Pacific rose 1%
and FedEx rose 2.5%. Financial stocks also rose broadly, with Goldman Sachs
rising 2.4% following a solid second quarter earnings report.
The latest round of corporate financial reports ramps up this week and
investors have low expectations. Wall Street is forecasting a 3% drop in profit
for S&P 500 companies. It is set to be the first back-to-back quarterly decline
in three years.
The influx of earnings reports are coming in ahead of a highly anticipated
Federal Reserve meeting at the end of the month. Wall Street expects the
central bank to raise interest rates to help secure U.S. economic growth
threatened by a trade war with China.
KEEPING SCORE: The S&P 500 index fell less than 1% as of 10:05 a.m. Eastern
time. The Dow Jones Industrial Average was mostly unchanged. The Nasdaq
composite fell slightly.
SOUR DOUGH: Domino's Pizza fell 4.3% after the pizza chain fell far short of
Wall Street forecasts for a key sales measure during the second quarter. The
company reported a 3% increase in sales at established locations while analysts
had forecast a 4.6% increase.
SHOCKING FORECAST: Arrow Electronics fell 2.8% after the company slashed its
profit forecast for the second quarter because of weak demand. The electronic
components company said global demand slumped and it will close its personal
computer business while cutting overall costs.
BURGER BOOST: Blue Apron jumped 17.5% after the meal-kit company said it
will start offering recipes with Beyond Meat's plant-based food. The company
will start offering the options in August.