US Stocks Move Lower Tuesday
(AP) -- Stocks moved lower in morning trading on Wall Street Tuesday, putting an extended winning streak for the market in jeopardy.
The S&P 500 index fell 0.4% as of 10:18 a.m. Eastern. The Dow Jones Industrial Average fell 158 points, or 0.4%, to 36,270 and the Nasdaq fell 0.5%.
Losses for a mix of technology companies and companies that rely on direct consumer spending outweighed gains elsewhere.
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Bond yields fell and hurt banks, which rely on higher yields to charge more lucrative interest on loans. The yield on the 10-year Treasury fell to 1.45% from 1.49% late Monday. Wells Fargo fell 1.8%.
PayPal slumped 10.9% after cuttings its profit and revenue forecasts for the year. Robinhood fell 3% after the popular trading app reported a data breach.
Auto companies and travel-related companies slipped. Ford fell 1.8% and Carnival fell 1.9%.
Sectors that are considered less risky, including household product makers and utilities, held up better than the rest of the market.
Investors received another reminder from the Labor Department that rising inflation remains persistent. The agency reported that inflation at the wholesale level rose 8.6% in October from a year earlier, matching September's record annual gain.
A wide range of companies are facing higher costs for raw materials and energy while contending with supply chain problems. That has been cutting into their operations and prompting them to raise prices on finished goods, which in turn has been making products and services more costly for consumers.
The Labor Department will release its Consumer Price Index for October on Wednesday, giving a more detailed picture on how inflation is impacting consumers.
A mix of solid earnings and corporate updates helped lift several stocks. General Electric rose 5.3% after saying it would split into three companies. Zynga, which makes "FarmVille" and other online games, rose 5.2% after giving investors an encouraging revenue forecast.
The latest round of earnings is nearing its end, but investors still have several big corporate report cards to review. Walt Disney will report its results on Wednesday. Tapestry, the owner of Coach and other luxury brands, will report its results on Thursday.