US stocks dip in early trading as tech stocks and banks fall
US stocks edge mostly higher in midday trading
(about 1 hour later)
NEW YORK — U.S. stocks are edging lower Thursday morning. Tech stocks are falling after dour projections from Seagate Technology, and bank stocks are slipping. Strong first-quarter results from Delta are giving airlines a boost.
NEW YORK — U.S. stocks are mostly higher in midday trading as investors look over the latest batch of earnings reports.
KEEPING SCORE: The Dow Jones industrial average lost 12 points, or 0.1 percent, to 17,895 as of 10:05 a.m. Eastern time. The Standard & Poor’s 500 index fell 3 points, or 0.2 percent, to 2,079. The Nasdaq composite edged down 12 points, or 0.2 percent, 4,935.
Delta Air Lines gained 3 percent Thursday after its results came in ahead of expectations, thanks partly to lower fuel costs. Other airlines stocks also rose.
TECH TROUBLES: Electronic storage maker Seagate Technology said its third-quarter profit margins and revenue will be lower than expected. The company said it’s seeing lower demand for some kinds of hard disk drives. Its stock slumped $5.84, or 17.2 percent, to $28.09. Western Digital fell 3.80, or 8.5 percent, to $41 and NetApp lost $1.24, or 4.6 percent, to $25.46.
Progressive sank 4 after reporting earnings that came in below analysts’ estimates.
FLYING HIGH: Delta Air Lines’ first-quarter profit jumped 27 percent, helped by low fuel costs. Delta’s stock gained $1.21, or 2.5 percent, to $49.25. American Airlines rose $1.51, or 3.8 percent, to $41.45 and United added $1.22, or 2.2 percent, to $56.80.
The Dow Jones industrial average rose 32 points, or 0.2 percent, to 17,940 as of 11:45 a.m. Eastern time.
BANKS: Banks continued to report their quarterly earnings. The results were mixed, and financial stocks traded lower overall. Bank of America’s profit fell on weak results from trading, but the outcome wasn’t any worse than investors expected. The stock picked up 11 cents to $13.90.
The Standard & Poor’s 500 index rose two points, or 0.1 percent, to 2,085. The Nasdaq composite edged up seven points, or 0.1 percent, 4,954.
Wells Fargo’s profit fell as it set aside more money to cover its struggling portfolio of oil and gas loans. Still, it earned more money than analysts expected. The stock fell 45 cents to $48.58. PNC Financial Services Group fell $1.42, or 1.7 percent, to $83.75 after its profit and revenue missed estimates.
Bond prices fell. The yield on the 10-year Treasury note rose to 1.80 percent.
Bank stocks jumped Wednesday after JPMorgan Chase, the largest U.S. bank, reported results that beat expectations.
PIER PRESSURE: Pier 1 Imports is falling after the home decor company gave a shaky outlook for the first half of its fiscal year. Pier 1 said it expects “pressure” on its profit and sales because of marketing expenses, including a return to TV advertising, as well as price markdowns. The stock gave up 66 cents, or 9.1 percent, to $6.68.
UNEMPLOYMENT FALLS: Claims for unemployment benefits dropped sharply last week and reached their lowest level since 1973. They’ve been at low levels for a year, which indicates the job market is healthy and employers aren’t letting go of workers. That suggests many companies see the recent slowdown as temporary.
ENERGY: Benchmark U.S. crude oil rose 18 cents to $41.94 a barrel in New York. Brent crude, the international standard, rose 19 cents to $44.37 a barrel in London.
OVERSEAS: In Europe, Germany’s DAX was up 0.5 percent while the CAC-40 in France rose 0.2 percent. The FTSE 100 index in Britain fell 0.1 percent. Japan’s benchmark Nikkei 225 closed 3.2 percent higher as the yen weakened slightly against the dollar. Hong Kong’s Hang Seng gained 0.8 percent and South Korea’s KOSPI climbed 1.7 percent.
BONDS, CURRENCIES: Bond prices were little changed. The yield on the 10-year U.S. Treasury note held steady at 1.77 percent. The euro fell to $1.1270 from $1.1283 and the dollar slipped to 109.06 yen from 109.24 yen.
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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
