Retailers Take Stocks Lower Early
(AP) -- U.S. stocks are mostly lower Tuesday morning after weak results from retailers including Home Depot, Coach and Advance Auto Parts help pull the market lower. Bond prices are falling and yields are climbing, which is giving banks a lift. Stocks are coming off their biggest one-day gain in more than three months as the market recovered from last week's turmoil.
KEEPING SCORE: The Standard & Poor's 500 index dipped 3 points, or 0.1 percent, to 2,462 as of 10:18 a.m. Eastern time. The Dow Jones industrial average slipped 10 points, less than 0.1 percent, to 21,986. Nasdaq composite fell 14 points, or 0.2 percent, to 6,326. The Russell 2000 index of smaller-company stocks shed 5 points, or 0.4 percent, to 1,388.
PARKED: Auto parts retailer Advance Auto Parts tumbled after it slashed its annual forecasts. The company and its competitors are facing weakening demand because car sales are slowing down from their recent record pace. Meanwhile competition from online retailers is growing. Advance Auto Parts dropped 21.55, or 19.7 percent, to $87.77 while O'Reilly Automotive gave up $4.97, or 2.5 percent, to $193.47 and AutoZone sank $22.57, or 4.3 percent, to $502.75. All three have taken steep losses this year.
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BERKSHIRE BUYING AND SELLING: Warren Buffett's Berkshire Hathaway bought stock in Synchrony Financial and picked up more shares of Bank of New York Mellon. It sold its remaining shares of General Electric and continued to reduce its stake in IBM. Synchrony gained $1.11, or 3.7 percent, to $30.75 and Bank of New York Mellon picked up 28 cents to $53.11. GE fell 19 cents to $25.17.
COACH GOES COLD: Luxury retailer Coach tumbled after its fourth-quarter sales and its profit forecast for the current fiscal year came up short of analyst estimates. Its shares fell $5.90, or 12.3 percent, to $42.02.
BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.26 percent from 2.22 percent. Fifth Third Bancorp rose 35 cents, or 1.3 percent, to $27.03 and Discover Financial Services added 93 cents, or 1.5 percent, to $61.43.
ECONOMICS: Consumers went out shopping in a big way in July and U.S. retail sales grew by the biggest amount this year. Retail sales have not been great in 2017, and consumer spending accounts for around 70 percent of economic activity. The latest result is a good sign for overall economic growth.
ENERGY: U.S. crude oil lost 39 cents to $47.20 a barrel in New York. Brent crude, the international standard, slipped 49 cents, or 1 percent, to $50.24 a barrel in London.
CURRENCIES: The dollar rose to 110.72 yen from 109.63 yen. The euro fell to $1.1706 from $1.1782.
OVERSEAS: France's CAC 40 was up 0.5 percent and the German DAX rose 0.3 percent. Britain's FTSE 100 was 0.4 percent higher. In Japan the benchmark Nikkei 225 gained 1.1 percent and Hong Kong's Hang Seng slipped 0.3 percent. Markets in South Korea were closed for a national holiday.
(BE)