Stocks close slightly lower; oil prices slide

The New York Stock Exchange is seen on Wall Street.

By Associated Press

Jan. 23, 2017 2:25 PM PT

Energy companies led U.S. stock indexes slightly lower Monday as the price of crude oil fell.

Real estate, phone companies and other high-dividend stocks did better than the rest of the market as bond yields headed lower, making those sectors more appealing to investors who are seeking income.

Investors focused on the latest batch of company earnings and deal news. They also had their eye on Washington, where President Trump reaffirmed plans to slash regulations on businesses and to tax foreign goods entering the country.

“There was that huge rally post election and things really were running on optimism,” said Lisa Kopp, head of traditional investments at U.S. Bank Wealth Management. “What you’re seeing now is people coming back to the idea that the policies aren’t exactly clear and [Trump’s] ability to actually push everything through exactly the way he wants is uncertain.”

The Dow Jones industrial average slipped 27.40 points, or 0.1%, to 19,799.85. The Standard & Poor’s 500 index fell 6.11 points, or 0.3%, to 2,265.20. The Nasdaq composite index edged down 2.39 points, or less than 0.1%, to 5,552.94. The Russell 2000, which tracks smaller companies, went down 4.01 points, or 0.3%, to 1,347.84.

At an early White House meeting with business leaders, Trump repeated a campaign promise to cut regulations by at least 75%. He also said there would be advantages to companies that make their products in the U.S., suggesting he will impose a “substantial border tax” on foreign goods entering the nation.

Trump also signed a memorandum announcing the United States’ intention to withdraw from the multi-nation trade agreement known as the Trans-Pacific Partnership, and he said he would renegotiate the North American Free Trade Agreement.

Companies that issued results or outlooks that fell short of Wall Street’s forecasts put traders in a selling mood.

McDonald’s fell 0.7% to $121.38 after the world’s biggest hamburger chain reported a fourth-quarter drop in sales at established U.S. locations. The decline snapped a streak of five quarters of increases.

Halliburton slid 2.9% to $54.80 after the provider of oil and gas drilling services warned of weaker demand in markets outside North America and its revenue missed forecasts.

Corporate deal-related news also moved some stocks.

Kate Spade climbed 3.6% to $18.40 after Bloomberg News reported that the handbag maker has attracted takeover interest from Coach, Michael Kors and international companies.

Sprint rose 2.8% to $9.18 following news that the mobile phone carrier is buying a 33% stake in Tidal, the music streaming service owned by artists including Jay Z.

Aetna fell 2.7% to $119.20 after a federal judge rejected the health insurer’s plan to buy rival Humana for about $34 billion. Aetna said it is reviewing the opinion and is considering an appeal.

Meanwhile, Qualcomm fell 12.7% to $54.88 on news that Apple is suing the San Diego maker of semiconductors, one of its major suppliers, for $1 billion in a patent fight. Qualcomm was the biggest decliner among companies in the S&P 500 index.

Benchmark U.S. crude fell 47 cents, or 0.9%, to $52.75 a barrel. Brent crude, used to price international oils, slid 26 cents, or 0.5%, to $55.23 a barrel.

The slide in crude prices weighed on the energy sector, which fell 1.1%. Oil and gas rig operator Transocean’s shares slumped 3.6% to $14.76.

Major global stock markets mostly fell amid concerns that the Trump administration will pursue trade protectionism policies. Germany’s DAX slid 0.7%, while France’s CAC-40 fell 0.6%. London’s FTSE 100 sank 0.7%. In Asia, a report showed that China’s economic growth ticked up in the final quarter of 2016, but the full-year expansion was the weakest in three decades. Hong Kong’s Hang Seng was unchanged. Tokyo’s Nikkei 225 fell 1.3%.

The 10-year Treasury yield slid to 2.40% from Friday’s 2.47%. Yields had generally been climbing since the November election on expectations that a Trump administration would spur more inflation and economic growth.

In currency markets, the dollar declined to 113 yen from Friday’s 114.31 yen. The euro rose to $1.0746 from $1.0707.

The price of gold rose $10.70 to $1,215.60 an ounce. Silver rose 15 cents to $17.19 an ounce. Copper rose 2 cents to $2.65 a pound.

Wholesale gasoline was little changed at $1.57 a gallon, while heating oil slipped 2 cents to $1.63 a gallon. Natural gas futures rose 4 cents, or 1.2%, to $3.24 per 1,000 cubic feet.

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UPDATES:

2:25 p.m..: This article was updated with closing prices, context and analyst comment.

7:40 a.m.: This article was updated with market prices and context.

This article was originally published at 7:05 a.m.