Stocks Lower on Media,Health Companies

NEW YORK (AP) -- U.S. stocks are falling Wednesday as media, technology and health care companies trade lower. Investors aren't thrilled with Apple's first-quarter results, which included lower-than-expected iPhone sales. The Federal Reserve is having a policy meeting, although investors don't expect it to raise interest rates.

KEEPING SCORE: The Standard & Poor's 500 index slipped 8 points, or 0.4 percent, to 2,383 as of 1:35 p.m. Eastern time. The Dow Jones industrial average lost 38 points, or 0.2 percent, to 20,911. The Nasdaq composite sank 33 points, or 0.5 percent, to 6,062. The Russell 2000 index, which tracks smaller companies, declined 10 points, or 0.8 percent, to 1,388.

FED WATCH: Investors don't expect the Federal Reserve to raise interest rates this month, but they will watch its statements closely for hints of when the next increase might come. Experts think it's likely the central bank will raise rates in June, as it did last December and again in March.

CHANNEL CHANGER: Media companies slumped after Time Warner, the owner of HBO and TBS, said revenue from advertising fell in the first quarter. Time Warner has agreed to be bought by AT&T, so its stock didn't move much, but its competitors slumped. Walt Disney shed $2.97, or 2.6 percent, to $111.41 while CBS sank $3.06, or 4.7 percent, to $62.60 and Viacom lost $2.73, or 6.2 percent, to $41.53 and Twenty-First Century Fox gave up $1.59, or 5.2 percent, to $28.84.

APPLE ON HOLD: Apple dipped after its first-quarter iPhone sales and projections for the current quarter weren't quite as good as analysts hoped. Apple stagnated in late 2015 and for much of 2016 as iPhone sales slowed down and then fell for the first time, but its stock has rallied in recent months. It closed at an all-time high Tuesday and stock slipped 63 cents to $146.88. Earlier it fell 2.2 percent.

Also down were cloud services provider Akamai Technologies, which forecast weak revenue in the second quarter as demand from gaming customers slows, and payroll and human resources company Automatic Data Processing, which said it didn't book as much new business. Akamai stock gave up $9.60, or 15.3 percent, to $52.90 and ADP lost $5.53, or 5.3 percent, to $98.48.

FEELING A CHILL: Health care companies traded lower. Biotech drugmaker Gilead Sciences reported disappointing profit and revenue as sales of its hepatitis C drugs Sovaldi and Harvoni plunged in all major markets, and its stock gave up $1.67, or 2.4 percent, to $66.92.

Irish generic drug maker Perrigo said its offices were searched as part of a Justice Department investigation into pricing by generic drug companies. Perrigo dropped $4.47, or 5.9 percent, to $71.76. Several other companies have previously disclosed subpoenas connected to that probe, including Mylan and Lannett. Mylan fell $1.26, or 3.3 percent, to $36.92. Lannett reported results that missed forecasts as drug pricing remained weak, and the stock tumbled $4.27, or 15.7 percent, to $22.88.

CRAFTING NEW LEADERSHIP: Online crafts marketplace Etsy replaced its CEO and said it will cut jobs as it faces pressure from shareholders upset with its lackluster profits and anemic stock performance. Chad Dickerson stepped down as CEO and chairman as the company named board member Josh Silverman as its new CEO. Etsy will also cut around 80 jobs, or 8 percent of its staff, to reduce costs. The stock gave up 97 cents, or 8.5 percent, to $10.42.

DELPHI HIGH: Vehicle parts maker Delphi Automotive surged after it said it will spin off its powertrain systems business into a separate publicly traded company. It expects to finish that move by next March. Investors often applaud such transactions, which are tax-free, because they can help fast-growing businesses concentrate on their own growth. Delphi stock added $7.46, or 9.5 percent, to $85.91.

ENERGY: U.S. benchmark crude added 3 cents to $47.69 a barrel in New York. Brent crude, used to price international oils, rose 15 cents to $50.61 a barrel in London. On Tuesday U.S. crude oil closed at its lowest price since mid-November.

SKUNKY: Molson Coors' first-quarter profit fell far short of expectations as it costs increased, and the brewer also said sales in the U.S. fell at the beginning of the year. Its stock slid $5.60, or 5.9 percent, to $89.76.

DEALS: Wireless spectrum license company Straight Path Communications continued to soar. It said it's received an all-stock offer worth $135.96 per share from an undisclosed buyer. AT&T had agreed to pay $95.63 per share. The company said it informed AT&T that the new offer is superior, and AT&T will have three days to decide if it wants to raise its offer.

Straight Path's stock jumped $27.62, or 22 percent, to $153.44.

Insurer OneBeacon agreed to be bought by Canada's Intact Financial Corp. for $18.10 a share, or $1.7 billion. Its stock jumped $2.49, or 15.9 percent, to $18.19.

BONDS: Bond prices didn't move much. The yield on the 10-year Treasury note remained at 2.29 percent.

CURRENCY: The dollar rose to 112.35 yen from 112 yen. The euro slid to $1.0916 from $1.0928.

OVERSEAS: The British FTSE 100 retreated 0.2 percent and France's CAC 40 lost 0.1 percent. The DAX of Germany rose 0.2 percent. Markets in Japan, Hong Kong and South Korea were closed for a holiday.

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