US stocks waver as banks fall and smaller companies climb

FILE- In this May 10, 2018, file photo, stock screens are shown at the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Thursday, July 19. (AP Photo/Mark Lennihan, File)
FILE- In this May 10, 2018, file photo, stock screens are shown at the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Thursday, July 19. (AP Photo/Mark Lennihan, File)

NEW YORK — U.S. stocks indexes are mixed Thursday as weak results from banks are partly canceled out by gains for smaller and more domestically-focused companies. Comcast rose after ending its bid to buy most of Twenty-First Century Fox. In testimony before Congress, representatives of the auto industry are speaking out against tariffs on imported cars and car parts proposed by the Trump administration.

KEEPING SCORE: The S&P 500 index slid 8 points, or 0.3 percent, to 2,807 as of 11:30 a.m. Eastern time. The Dow Jones Industrial Average fell 82 points, or 0.3 percent, to 25,116. The Nasdaq composite gave up 11 points, or 0.2 percent, to 7,842. The Russell 2000 index of smaller-company stocks recovered from an early slide and rose 6 points, or 0.4 percent, to 1,698. Retailers did especially well. More stocks rose than fell on the New York Stock Exchange.

EARNINGS: Second-quarter results and forecasts from U.S. companies continued to dominate trading. EBay slumped 9.1 percent to $34.51 after reporting revenue that missed forecasts. Philip Morris skidded 4.7 percent to $78.27 after cutting its annual profit forecast.

American Express fell 2 percent to $100.91 after setting aside more money to cover potential bad loans. AmEx also saw its delinquency rate rise. That could mean that some of American Express' customers, typically the most creditworthy, are struggling to pay their bills. Banks lagged. BB&T fell 4.5 percent to $50.57 and Bank of New York Mellon lost 5.8 percent to $52.40.

IBM fared better, as its stock rose 3.2 percent to $149.15 after the technology and consulting company reported results that surpassed analysts' estimates. Industrial and medical device maker Danaher also did better than expected, and said it plans to spin off its dental business as a separate company in late 2019. It jumped 5.1 percent to $103.80.

CHANNEL CHANGER: Cable and internet provider Comcast said it won't make another bid for Twenty-First Century Fox's entertainment business and will instead focus on trying to buy European pay-TV operator Sky. Comcast had offered as much as $66 billion in cash for those businesses, but Disney topped it with a bid of $71 billion in cash and stock. Fox shareholders are scheduled to vote on Disney's offer next week.

Comcast gained 3.1 percent to $35.08 while Fox fell 1.5 percent to $45.98. Disney gained 3 percent to $114.01, and in London, shares of Sky fell 2.2 percent.

AUTO TARIFFS: Representatives of manufacturers, suppliers and car dealers are in Washington Thursday along with foreign diplomats to testify at a Congressional hearing, seeking to head off the Trump administration's proposed tariffs on imported cars and car parts. The European Union said it was already preparing measures to retaliate.

The U.S. imported $335 billion in autos and parts in 2017, so those tariffs could dwarf the taxes the administration has placed on imported steel, aluminum, and goods from China.

General Motors slid 0.8 percent to $39.56 and Tesla dipped 2.2 percent to $316.86. Auto parts retailer BorgWarner lost 1 percent to $45.54.

DRUGMAKER DOWNTURN: Companies that make and distribute drugs fell after the Trump administration proposed changes to government rules on drug price rebates. AbbVie fell 5 percent to $89.72 and drugstore and pharmacy benefits manager CVS Health shed 1.4 percent to $66.95.

HIGH FLYER: The first U.S. public offering of shares in a marijuana company got off to a strong start. Canada-based Tilray soared 28 percent on its first day of trading to $21.72.

COMMODITIES: Benchmark U.S. crude rose 1.5 percent to $69.70 per barrel in New York. Brent crude, used to price international oils, gained 0.6 percent to $73.35 per barrel in London.

Gold fell 0.9 percent to $1,216.90 an ounce and copper dropped 2.2 percent to $2.70 a pound. Mining companies and basic materials makers fell.

BONDS: Bond prices edged lower. The yield on the 10-year Treasury note fell to 2.85 percent from 2.87 percent.

CURRENCIES: The dollar rose to 112.94 yen from 112.84 yen. The euro fell to $1.1601 from $1.1646. The ICE-US dollar index reached a 12-month high.

OVERSEAS: Germany's DAX fell 0.7 percent and France's CAC 40 was down 0.6 percent. Britain's FTSE 100 added 0.1 percent.

Asian markets finished mostly lower with Japan's Nikkei 225 losing 0.1 percent and South Korea's Kospi shed 0.3 percent. Hong Kong's Hang Seng fell 0.4 percent.


AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay


Upcoming Events