Stocks Step Back After a Big Gain
NEW YORK (AP) -- U.S. stocks are dipping Friday morning, a day after the market made its biggest gain in two months. Technology companies are returning some of their recent gains and banks are down along with interest rates. Retailers including Ross Stores, Gap and Foot Locker are jumping after they reported strong quarterly results.
KEEPING SCORE: The Standard & Poor's 500 index fell 2 points, or 0.1 percent, to 2,582 as of 10 a.m. Eastern time. The Dow Jones industrial average gave up 65 points, or 0.3 percent, to 23,393. The Nasdaq composite lost 3 points, or 0.1 percent, to 6,789 after it closed at a record high Thursday. The Russell 2000 index of smaller-company stocks dipped 1 point, or 0.1 percent, to 1,485.
NO STICKER SHOCK: Retailers are typically the last companies to make their quarterly reports, and in the last two days investors have liked what they've seen. Ross Stores jumped $6.95, or 10.6 percent, to $72.64 after its profit and sales were greater than expected, and the company raised its forecast for the rest of the year. The discount retailer said its business remained strong even though it dealt with the effects of several major hurricanes. Gap, too, did better than expected as sales at Old Navy and Athleta improved and it cut spending. Its stock gained $2.27, or 8.3 percent, to $29.75.
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Sporting goods retailers jumped following months of losses. Foot Locker had a solid quarter and said that in spite of high discounts, it expects to meet or "modestly exceed" its annual profit and sales forecasts. It surged $8.31, or 26.1 percent, to $40.16. Competitor Hibbett Sports raised its profit forecast and expects a smaller decline in an important sales measurement. Its stock climbed $2.60, or 17.5 percent, to $17.45. Foot Locker has fallen more than 40 percent this year and Hibbett has dropped more than 50 percent.
YOU ARE WATCHING FOX: Twenty-First Century Fox climbed following reports cable company Comcast is in talks to buy the company's movie studio, some of its cable channels, and its international business. The Wall Street Journal and CNBC first reported Comcast's interest. The talks are at an early stage and may not lead to an offer. Journal reported that Verizon is also interested in some of Fox's assets.
Reports last week said Disney recently discussed a deal with Fox for the same assets Comcast is said to be interested in. Fox gained $1.68, or 5.7 percent, to $31 and Comcast fell 66 cents, or 1.8 percent, to $36.42. Verizon picked up 47 cents, or 1.1 percent, to $45.25.
WILLIAMS WOBBLES: Home furnishings retailer Williams Sonoma slumped after it gave a disappointing profit forecast. Its stock $6.86, or 13 percent, to $46.01.
ENERGY: Benchmark U.S. crude rose 80 cents, or 1.5 percent, to $55.94 a barrel in New York. Brent crude, used to price international oils, gained 55 cents to $61.91 a barrel in London.
BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.35 percent from 2.38 percent.
CURRENCIES: The dollar fell to 112.42 yen from 112.98 yen. The euro rose to $1.1793 from $1.1765.
OVERSEAS: France's CAC 40 shed 0.3 percent and Germany's DAX slid 0.4 percent. The British FTSE 100 slipped 0.1 percent. Japan's benchmark Nikkei 225 rose 0.2 percent and South Korea's Kospi ended was little changed. Hong Kong's Hang Seng index gained 0.6 percent.
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