Jump in Bond Yields Hurts Stocks

NEW YORK (AP) -- U.S. stocks are slipping Wednesday morning as high-dividend stocks like phone companies and utilities trade lower following a big jump in bond yields. Industrial companies are falling after weak third-quarter reports from companies including Alaska Air, General Dynamics and railroad operator Norfolk Southern. Shaky results from companies such as Dr Pepper Snapple are weighing on food and drink makers.

KEEPING SCORE: The Standard & Poor's 500 index shed 8 points, or 0.3 percent, to 2,560 as of 10:25 a.m. Eastern time. The Dow Jones industrial average fell 49 points, or 0.2 percent, to 23,392. The Nasdaq composite sank 14 points, or 0.2 percent, to 6,584. The Russell 2000 index, which is comprised of smaller-company stocks, dropped 6 points, or 0.4 percent, to 1,493.

BONDS: Bond prices fell again. The yield on the 10-year Treasury note rose to 2.46 percent from 2.42 percent. That's its highest level since March, and it put pressure on companies that pay large dividends. Those stocks tend to do better when bond yields weaken, as the reduced yields make them more attractive to investors who are looking for income.

BUSY SIGNAL: Stocks that pay large dividends were hurt by a double-whammy of weak earnings and falling bond yields.

AT&T lost $1, or 2.9 percent, to $33.86 after it reported a smaller profit and less revenue than Wall Street expected in the third quarter, and Verizon Communications gave up 42 cents to $48.52. Among utilities, NextEra Energy lost $2.40, or 1.6 percent, to $151.82 and DTE Energy sank $3.36, or 3 percent, to $109.34. Dominion Energy gave up $1.54, or 1.9 percent, to $78.81.

THIRSTY: Dr Pepper Snapple tumbled $5.08, or 5.7 percent, to $84.63. The 7Up maker's profit and sales were weaker than expected. It cut its profit forecast for the year because of higher costs as well as expenses from its purchase of drink maker Bai. Dr Pepper Snapple also said hurricanes Harvey and Irma affected its business in the third quarter.

Competitor PepsiCo lost $1.22, or 1.1 percent, to $109.53. Coca-Cola did well in its latest quarter, but lost 17 cents to $46.

POWER DOWN: Media and marketing information company Nielsen Holdings dropped $2.27, or 5.5 percent, to $38.82 after it reported weak results in the U.S. Norfolk Southern slid $3.69, or 2.8 percent, to $128.63 even though its results were better than analysts expected. Alaska Air gave up $3.61, or 4.5 percent, to $75.79.

Defense contractor General Dynamics lost $2.03, or 1 percent, to $210.05. The company's technology and marine systems businesses reported lower sales compared to a year ago, and its revenue fell far short of estimates.

MELTED QUESO: Chipotle Mexican Grill disclosed disappointing third-quarter results as food safety scares continued to affect its business. The Mexican food chain introduced a new queso cheese dip in its latest effort to win back customers, but the effects of a 2015 E. coli outbreak and other problems still haven't dissipated. The stock plunged $42.62, or 13.1 percent, to $281.68.

OIL: Benchmark U.S. crude shed 28 cents to $52.19 per barrel in New York. Brent crude, used to price international oils, rose 12 cents to $58.45 per barrel in London.

CURRENCIES: The dollar rose to 113.98 yen from 113.58 yen. The euro edged up to $1.1792 from $1.1788. The British pound rose to $1.3233 from $1.3136.

OVERSEAS: Britain's FTSE 100 slipped 0.5 percent as investors felt a stronger-than-expected report on economic growth makes it more likely the Bank of England will raise interest rates next month. France's CAC 40 added 0.1 percent and the DAX in Germany edged 0.1 percent lower.

The Nikkei 225 index fell 0.5 percent as a 16-day winning streak for Japanese stocks came to an end. The index rose 7.2 percent in its longest winning streak since World War II. The South Korean Kospi added 0.1 percent and Hong Kong's Hang Seng gained 0.5 percent.