Dow in another record close even as other indexes slip

The Dow Jones industrial average notched its third record high close in a row Wednesday, even as other market indexes ended lower.

Trading was relatively subdued as investors reviewed the latest corporate earnings news. Utilities stocks were among the biggest decliners. Energy stocks rebounded as oil prices broke a five-day slide and climbed back above $50 a barrel.

Wall Street also kept an eye on Federal Reserve Chief Janet Yellen’s second appearance before Congress in two days. Her remarks didn’t generate any major market-moving news. A day earlier, Yellen suggested that the Fed is not in a hurry to raise interest rates.

“The market is just trying to figure out whether the next move is up or down,” said David Lebovitz, global market strategist at J.P. Morgan Asset Management.

The Dow ended up 15.38 points, or 0.1 percent, to 18,224.57. McDonald’s was the biggest gainer in the 30-company index, climbing 3.9 percent.

The Standard & Poor’s 500 index slipped 1.62 points, or 0.1 percent, to 2,113.86. The Nasdaq shed 1 point, or 0.02 percent, to 4,967.14. The three indexes are all up for the year.

The Dow and S&P 500 closed at record highs on Tuesday after investors were encouraged Yellen’s remarks on interest rates. Lower rates make borrowing easier and tend to be a plus for financial markets.

The Fed has kept its benchmark rate near zero since 2008. Most economists anticipate that a rate increase is not likely before June or even later this year.

A key factor in that decision will be inflation. That’s one reason investors will be focused on the release of the latest consumer price index on Thursday.

“That should provide a little bit of insight on what the Fed’s next move might be and when it may occur,” Lebovitz said.

The three indexes opened lower on Wednesday, then veered between small gains and losses through much of the day. In the last hour of trading, the Dow eked out a gain.

Hewlett-Packard and Boston Beer slumped early. Both reported disappointing quarterly results late Tuesday. Hewlett-Packard tumbled 9.9 percent, while the brewer of Samuel Adams beer sank 10.3 percent. Chesapeake Energy and Lumber Liquidators also declined after reporting weak earnings early Wednesday. Chesapeake fell 9.6 percent, while the hardwood floors retailer slid 26.4 percent.

Investors bid up shares in several companies whose latest quarterly earnings fared better.

TJX, the parent company of T.J. Maxx and Marshalls, rose 3.3 percent after its profit beat analysts’ expectations. The company also said would raise wages for its workers.

Benefitfocus vaulted 47.2 percent, while specialty contracting services company Dycom Industries surged 17 percent. Discount retailer Dollar Tree rose 2.2 percent.

In all, half of the 10 sectors in the S&P 500 moved lower. Utilities stocks fell 1.6 percent and are now down 4 percent this year. Consumer discretionary stocks notched the biggest gain. The sector is up 5.6 percent this year.

The price of oil rose after the Energy Department reported that diesel and gasoline inventories fell more than expected, indicating a pickup in demand. Benchmark U.S. crude rose $1.71 to close at $50.99 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $2.97 to close at $61.63 in London.

In other futures trading on the NYMEX: Wholesale gasoline rose 9.9 cents to close at $1.719 a gallon, while heating oil rose 7.5 cents to close at $2.104 a gallon. Natural gas fell 0.8 cents to close at $2.894 per 1,000 cubic feet.

Gold rose $4.20 to $1,201.50 an ounce, silver rose 24 cents to $16.43 an ounce and copper rose two cents to $2.66 a pound.

U.S. government bond prices rose. The yield on the 10-year Treasury note slipped to 1.97 percent from 1.98 percent late Tuesday.

source: business.inquirer.net

US stocks dip as oil pushes energy sector lower

NEW YORK—A slump in energy prices pushed the stock market back from record levels on Tuesday.

Energy stocks slid as the price of oil resumed its descent. Traders speculated that member nations of the oil-producing group OPEC would fail to agree on production cuts at an upcoming meeting in Vienna on Thursday. Oil has now dropped almost a third from a peak in June.

While lower oil prices are a long-term boon to consumers and industrial companies, they are a drag on stocks in the near term because energy companies account for about 10 percent of the overall market’s profits.

Despite the losses, the major indexes remain close to all-time highs.

Stocks have been drifting gradually higher this month, having rebounded sharply from a slump in October, as investors have grown more confident that actions from central banks around the world will help bolster the global economy. The gains are likely to continue for now, said Jim McDonald, chief investment strategist at Northern Trust.

“People’s sentiment is still pretty conservative,” McDonald said. “That means that the slow-and-steady market can continue longer than people anticipate.”

The Standard & Poor’s 500 index fell 2.38 points, or less than 0.1 percent, to 2,067.03. The Dow Jones industrial average dropped 2.96 points, or less than 0.1 percent, to 17,814.94. The Nasdaq composite gained 3.36 points, or 0.1 percent, to 4,758.25.

Stocks started the day with small gains after a report showed that the US economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported. The upward revision was due to higher estimates of spending by consumers and businesses, the Commerce Department said.

That positive report was tempered by news that US consumer confidence fell in November. The Conference Board says its consumer confidence index fell to 88.7, down from a seven-year high of 94.5 in October. The decline primarily reflected less optimism in the short-term outlook as consumers expressed less confidence in current business conditions.

Among individual stocks, Pall, a company that makes filters for the food and health care industries, was the leading gainer in the S&P 500. The company’s stock jumped $3.31, or 3.5 percent, to $98 after its earnings beat the expectations of Wall Street analysts.

Energy stocks slid along with oil prices following reports that the world’s biggest producers are unwilling to cut production to help stop a slump in the price of crude. The sector dropped 1.6 percent and is now down 3.2 percent for the year. It’s the only one of the 10 industry sectors in the S&P 500 that is down for the year.

Representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft met Tuesday ahead of a meeting of the Organization of the Petroleum Exporting Countries in Vienna and didn’t announce any immediate plans to cut output, The Wall Street Journal reported.

Benchmark US crude fell $1.69 to close at $74.09 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many US refineries, fell $1.35 to close at $78.33 a barrel on the ICE Futures exchange in London.

In metals trading, the price of gold rose $1.40 to $1,197.10 an ounce. Silver rose 18 cents to $16.55 an ounce and copper fell four cents to $2.96 a pound.

US government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.31 percent Monday. The dollar fell to 117.94 yen from 118.28 yen late Monday. The euro rose to $1.2472.

In other energy futures trading on the NYMEX:

— Wholesale gasoline fell 0.1 cent to close at $2.032 a gallon

— Heating oil fell 0.1 cent to close at $2.395 a gallon.

— Natural gas rose 13.1 cents to close at $4.282 per 1,000 cubic feet– Steve Rothwell

source: business.inquirer.net