Stocks post modest losses as bond yields slump
Industrial and materials companies led U.S. stocks modestly lower Wednesday on another day of subdued trading ahead of the long Easter holiday weekend.
The slide marked the second decline in a row for the stock market, extending its losses for the month.
Energy stocks also fell as oil prices snapped a six-day winning streak. Utilities, phone companies and other high-dividend stocks were among the biggest gainers. Bond prices rose, sending yields lower.
The Standard & Poor’s 500 index slid 8.85 points, or 0.4%, to 2,344.93. The Dow Jones industrial average fell 59.44 points, or 0.3%, to 20,591.86. The Nasdaq composite index lost 30.61 points, or 0.5%, to 5,836.16.
Small-company stocks did worse than the rest of the market. The Russell 2000 index gave up 17.75 points, or 1.3%, to 1,359.20.
The yield on the benchmark U.S. 10-year note fell to 2.25% from 2.32% late Tuesday. That’s its lowest yield since November.
“That’s indicative of people once more taking that opinion of being risk-off, or not willing to make a bet that equity prices are going to be up because of higher earnings to be reported here for the first quarter,” said Terry DuFrene, global investment specialist at J.P. Morgan Private Bank.
Among the stocks that helped pull the market lower Tuesday was Tractor Supply, which sank 8.3%, shedding $5.86 to $64.61. The farm equipment retailer said sales of seasonal goods fell during the first quarter.
Industrial-sector stocks were the biggest decliners in the S&P 500. Fastenal tumbled 8% after the maker of industrial coatings and construction fasteners disclosed that its business was hurt by higher freight expenses and inventory costs. The stock lost $4.05 to $46.29.
Investors bid up shares in Blackberry after arbitrators awarded the smartphone maker $814.9 million to resolve a dispute with Qualcomm over royalty overpayments. The stock gained $1.23, or 16%, to $8.93.
Major stock indexes overseas were mixed. In Europe, Germany’s DAX rose 0.1%, while France’s CAC 40 fell less than 0.1%. Britain’s FTSE 100 dropped 0.2%. Earlier in Asia, Japan’s benchmark Nikkei 225 stock index slid 1% after the dollar fell under 110 yen for the first time in five months, pressuring the country’s exporters. Hong Kong’s Hang Seng reversed its losses in the final hour of trading, rising 0.9%.
Benchmark U.S. crude snapped a six-day winning streak, losing 29 cents to close at $53.11 a barrel in New York. Brent crude, the standard for international oil prices, fell 37 cents to close at $55.86 a barrel in London.
Gold rose $3.90 to $1,278.10 an ounce.
The dollar took a sharp turn lower after President Trump said in an interview with the Wall Street Journal that the dollar was “getting too strong.” In late trading, the dollar weakened to 109.10 yen, down from 109.69 yen late Tuesday. The euro strengthened to $1.0669 from $1.0608.
UPDATES:
2:25 p.m.: This article was updated with results from the market’s close.
The article was originally published at 7:05 a.m.
