Health Care, Banks Pull Stocks Down 10/22 09:52
U.S. stocks veered broadly lower in early trading Monday as losses in health
care companies and banks outweighed gains elsewhere.
(AP) -- U.S. stocks veered broadly lower in early trading Monday as losses
in health care companies and banks outweighed gains elsewhere. Energy companies
declined along with the price of crude oil. Toy makers slumped after Hasbro
reported quarterly results that fell well short of Wall Street's expectations.
KEEPING SCORE: The S&P 500 index fell 12 points, or 0.5 percent, to 2,755 as
of 10:12 a.m. Eastern Time. The Dow Jones Industrial Average lost 90 points, or
0.4 percent, to 25,353. The Nasdaq slid 14 points, or 0.2 percent, to 7,434.
The Russell 2000 index of smaller-company stocks picked up 2 points, or 0.1
percent, to 1,544.
EARNINGS SEASON: Investors have been worried in recent weeks about potential
threats to corporate growth, including rising interest rates, trade tensions
between the U.S. and China, and some sluggish reports about housing
construction and sales. This week traders' focus turns to corporate earnings as
companies roll out their latest quarterly results over the next couple of weeks.
BROKEN TOYS: Hasbro slumped 5.6 percent to $92.42 after the toy maker
reported disappointing third-quarter results, partly due to lost sales
following the demise of Toys R Us. Rival Mattel also declined, shedding 2.1
percent to $13.92.
ON THE HOT SEAT: Lennox International shares fell 6.4 percent to $180.85
after the maker of residential heating and cooling products reported quarterly
revenue that fell short of analysts' forecasts. The company also lowered its
fiscal year earnings guidance.
COSTLY DELAY: Bristol-Myers Squibb declined 5.4 percent to $51.39 after the
drugmaker said regulators extended a review of a cancer treatment regimen by
three months, delaying its approval.
ENERGY: Benchmark U.S. crude fell 0.6 percent to $68.71 per barrel in New
York. Brent crude, used to price international oils, slid 0.4 percent to $79.47
per barrel in London.
The slide in oil prices weighed on energy stocks. Halliburton fell 2.5
percent to $36.59.
BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury fell to
3.18 percent from 3.19 percent late Friday.
CURRENCY: The dollar strengthened to 112.77 yen from 112.60 yen on Friday.
The euro fell to $1.1479 from $1.1510.
MARKETS OVERSEAS: Germany's DAX slipped 0.1 percent and France's CAC-40 lost
0.3 percent. Britain's FTSE 100 rose 0.3 percent. In Asia, the Hang Seng in
Hong Kong surged 2.3 percent, while Japan's Nikkei 225 index reversed early
losses, gaining 0.4 percent. The Kospi in South Korea added 0.3 percent.
Australia's S&P-ASX 200 countered the trend, shedding 0.6 percent. Shares rose
in Taiwan, Singapore and Indonesia, but fell in Thailand.