Stocks Slide as Oil Prices Fall

Stocks Slide as Oil Prices Fall

NEW YORK (AP) -- U.S. stock indexes are falling for the second day in a row Wednesday as energy companies tumble with the price of oil. Banks also slipped following another decline in bond yields. Technology companies continued to surge. Chipmaker Analog Devices is up sharply after its quarterly results were better than Wall Street had expected.

KEEPING SCORE: The Standard & Poor's 500 index lost 8 points, or 0.4 percent, to 2,404 as of 10 a.m. Eastern time. The Dow Jones industrial average dropped 75 points, or 0.4 percent, to 20,953. The Nasdaq composite fell 32 points, or 0.5 percent, to 6,171. The Russell 2000 index of small-company stocks again did worse than the other major indexes. It retreated 15 points, or 1.1 percent, to 1,355.

ENERGY: Benchmark U.S. crude lost $1.64, or 3.3 percent, to $48 a barrel in New York. Brent crude, the standard for international oil prices, fell $1.78, or 3.4 percent, to $50.45 a barrel in London. Energy stocks continued to decline. Halliburton sank 50 cents, or 1.1 percent, to $44.65 and ConocoPhillips declined 29 cents to $44.50.

CHIP CHIP, HOORAY: Technology companies, including makers of semiconductors, traded higher after a strong report from Analog Devices. The company's fiscal second-quarter profit and sales came in above analyst estimates, and its estimates for the current quarter were also above expectations. Its stock jumped $3.51, or 4.1 percent, to $88.31. Elsewhere Advanced Micro Devices rose 14 cents, or 1.3 percent, to $11.26 and Microchip Technology gained 94 cents, or 1.1 percent, to $83.46.

BONDS: Bond prices rose, pushing yields lower. The yield on the 10-year Treasury note fell to 2.20 percent from 2.21 percent. Banks stocks continued to fall. Declining bond yields push interest rates on long-term loans lower, which hurts banks' profits. JPMorgan Chase fell $1.45, or 1.7 percent, to $82.45 and Capital One slumped $1.62, or 2.1 percent, to $76.66. Other financial institutions also traded lower, including Goldman Sachs, which gave up $5.25, or 2.4 percent, to $213.05.

FEELING BETTER: Health care companies also made strong gains. Johnson & Johnson advanced $1.30, or 1 percent, to $128.41 while Pfizer rose 40 cents, or 1.2 percent, to $32.53. Irish drugmaker Perrigo climbed $3.81, or 5.6 percent, to $71.74 after its first quarter report was better than expected.

BAGGED: Michael Kors Holdings said it will close up to 125 stores as its sales have remained weak. The luxury retailer said sales at older stores dropped in its latest quarter and investors weren't thrilled with its projections for the current quarter. The stock tumbled $3.32, or 9.2 percent, to $32.95.

CURRENCIES: The dollar slipped to 110.76 yen from 110.78 yen. The euro rose to $1.1229 from $1.1188. The British pound rose to $1.2862 from $1.2813.

The pound was volatile after polls and survey's showed the general election on June 8 might be closer than expected. Early on, observers expected the Conservative Party of Prime Minister Theresa May to win in a landslide, but polls suggest the race could be close. May supports Britain's exit from the European Union, and if she wins a smaller majority, it could hurt her side as Britain negotiates its departure from the union.

OVERSEAS: France's CAC 40 rose 0.4 percent and the German DAX gained 0.8 percent. In Britain, the FTSE 100 rose 0.6 percent. Japan's Nikkei 225 index fell 0.1 percent and South Korea's Kospi gained 0.2 percent. The Hang Seng in Hong Kong inched down 0.1 percent.