VOL. 41 | NO. 36 | Friday, September 08, 2017
US stocks dip after record run as tech companies skid
NEW YORK (AP) — U.S. stocks are falling Thursday morning after finishing at record highs the last two days. Technology and health care companies, the best-performing sectors of the market in 2017, are taking some of the biggest losses. Prices paid by consumers jumped in August, which could be a sign inflation is increasing, but it's not clear how much of a role Hurricane Harvey played in the change.
KEEPING SCORE: The Standard & Poor's 500 index slid 3 points, or 0.2 percent, to 2,494 as of 10:26 a.m. Eastern time. The Dow Jones industrial average rose 8 points to 22,166, after a strong start for aerospace company Boeing. The Nasdaq composite slumped 22 points, or 0.4 percent, to 6,437. The Russell 2000 index of smaller-company stocks dipped 1 point, or 0.1 percent, to 1,425.
TAKING ILL: Prescription drug distributor AmerisourceBergen declined $3.73, or 4.4 percent, to $80.59 and competitor McKesson fell $5.81, or 3.7 percent, to $151.87. Dental supply company Henry Schein gave up $3.25, or 1.9 percent, to $165.63 and drugmaker Gilead Sciences lost $1.40, or 1.7 percent, to $81.76.
TECH TROUBLE: Facebook slid $1.53 to $171.52 and security software company Symantec declined 31 cents, or 1 percent, to $31.27. Chipmaker Broadcom lost $1.71 to $244.53.
DEAL DEAD: Chipmaker Lattice Semiconductor wobbled after the U.S. government stopped its sale to a firm backed by the Chinese government because of national security concerns. Lattice accepted the $1.02 billion offer from Canyon Bridge Partners in November, but investors have long been skeptical the deal would be completed. Last week a U.S. government panel said the deal should be blocked.
Lattice shook off an early loss to rise 7 cents, or 1.2 percent, to $5.79. Canyon Bridge agreed to pay $8.30 a share.
PRICES: U.S. consumer prices grew 0.4 percent in August, according to the Labor Department, and they're up 1.9 percent over the last year. The increase in August came because gas and housing costs rose. That could show inflation is rising, but it's not clear how much of a role Hurricane Harvey, which flooded the Gulf Coast region, played in raising gas prices.
The Federal Reserve is meeting next week and investors wondered if Thursday's report makes it more likely the Fed will raise interest rates later in the year. Higher interest rates make borrowing more expensive and slow down economic growth.
Jewelry seller Tiffany dropped $3.44, or 3.6 percent, to $92.07 and grocery store Kroger fell 46 cents, or 2.1 percent, to $21.27. Clothing company PVH skidded $2.60, or 2 percent, to $124.84.
TENET TALKING? Hospital chain Tenet Healthcare climbed 54 cents, or 3.3 percent, to $16.78 after the Wall Street Journal reported the company may sell itself.
TAKEOFF: Boeing rose another $2.25 to $244.18. Wednesday afternoon, CEO Dennis Muilenberg said the company expects to start delivering more planes. The stock rose 0.6 percent a day ago.
OVERSEAS: The Bank of England kept its key interest rate at a record low but indicated that it could start raising rates sooner than markets have been expecting. That sent the pound higher and British stocks lower. A stronger pound would hurt the earnings of British companies that do a lot of business overseas.
Britain's FTSE 100 fell 0.9 percent while the French CAC 40 rose 0.1 percent and Germany's DAX fell 0.2 percent.
Investors in Asia were disappointed after China's National Bureau of Statistics said the world's second-largest economy grew at a slower pace in August. The Japanese Nikkei 225 fell 0.3 percent and Hong Kong's Hang Seng index fell 0.4 percent. The Kospi in South Korea gained 0.7 percent.
OIL: Benchmark U.S. crude oil rose 71 cents, or 1.4 percent, to $50.01 a barrel, the first time in a month it traded above $50. Brent crude, used to price international oils, gained 46 cents to $55.62 a barrel in London.
BONDS: Bond prices declined. The yield on the 10-year Treasury note rose to 2.20 percent from 2.19 percent.
CURRENCIES: The dollar dipped to 110.61 yen from 110.66 yen. The euro rose to $1.1881 from $1.1873. The pound jumped to $1.3354 from $1.3197.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jays