Retailers And Tech Companies Lead Stock Indexes Higher
Published July 17th, 2017
NEW YORK (AP) — U.S. stocks are mostly higher Monday morning as retailers and clothing companies rise while banks slip along with interest rates. Technology companies continue to recover after a steep skid that lasted about a month. Stock indexes closed at record highs Friday and are adding to their gains.
KEEPING SCORE: The Standard & Poor's 500 index added 1 point, or 0.1 percent, to 2,461 as of 10:05 a.m. Eastern time. The Dow Jones industrial average picked up 2 points to 21,640. The Nasdaq composite rose 17 points, or 0.3 percent, to 6,329, which put the index on pace for an all-time high. The Russell 2000 index of smaller-company stocks edged up 1 point, or 0.1 percent, to 1,429.
Stocks climbed last week and reached all-time highs after a weak retail sales report gave investors more hope that the Federal Reserve will be cautious about raising interest rates. The S&P 500, Dow and Russell indexes all closed at record highs and the Nasdaq has regained the losses it sustained when technology companies went into a slump in early June.
BLACKROCK ROCKED: Investment firm BlackRock dipped after it reported weaker-than-expected results in the second quarter. The company's net income and revenue both fell short of Wall Street forecasts, and its stock declined .39, or 2.6 percent, to 6.95.
LOST IN THE MAIL: FedEx said customers are still experiencing "widespread service and invoicing delays" after its TNT Express business was hit by a cyberattack in late June. FedEx said it does not know when its services will back up to speed, and the problems are likely to have a significant effect on its results this year because TNT shipping volumes are down, and the company faces greater costs related to its response to the problem. FedEx added that it does not have insurance related to cyberattacks.
The company's stock fell .47, or 2.5 percent, to 3.59.
CHARMIN MAKER SQUEEZED: Activist investor Nelson Peltz is attempting to secure a seat on the board at consumer products giant Procter & Gamble. Peltz's Trian Fund Management, which owns .3 billion of P&G's stock, said the company's financial results over the last decade have been disappointing. Over the last few years Procter & Gamble has focused on its bigger brands and shed some of the smaller ones, but that has affected its overall sales and its stock price. The company's products include Tide detergent, Charmin toilet paper, Crest toothpaste and Dawn soaps.
Its stock slid 24 cents to .86.
BLUE APRON'S KITCHEN NIGHTMARE: Meal kit company Blue Apron tumbled after The Sunday Times reported that Amazon is getting ready to launch its own meal-prep business. The British newspaper reported that Amazon registered a trademark for a food kit business. Blue Apron went public June 29 with an IPO that priced at a share, less than the company initially expected, and its stock has fallen further since then. Blue Apron filed to go public about two weeks before Amazon agreed to buy the Whole Foods grocery chain.
Blue Apron dropped 67 cents, or 9.1 percent, to .69 while Amazon added .27, or 1.1 percent, to ,013.08.
DIAMOND DEAL: Diamond producer Dominion Diamond agreed to be bought by Washington Cos. for .25 a share, or about .2 billion. Dominion said in March that it was considering strategic options including a potential sale. The company's stock gained 54 cents, or 4 percent, to .02.
STICKER SHOCK: Label manufacturer Multi-Color Corp. said it will pay .3 billion in cash and stock to buy the labels business of Constanta Flexibles. Multi-Color said the deal will raise its annual revenue to .6 billion. Its shares declined .10, or 8.6 percent, to .45.
ENERGY: Benchmark U.S. lost 19 cents to .35 per barrel in New York. Brent crude, used to price international oils, shed 13 cents to .78 a barrel in London.
BONDS: Bond prices rose slightly. The yield on the 10-year Treasury note fell to 2.32 percent from 2.33 percent.
CURRENCIES: The dollar slipped to 112.38 yen from 112.56 yen. The euro remained at .1467. The ICE US dollar is at its lowest level since early September. It's fallen every month since March.
OVERSEAS: London's FTSE 100 index rose 0.4 percent while the French CAC 40 was nearly unchanged. Germany's DAX was 0.3 percent lower. The Hang Seng in Hong Kong gained 0.3 percent and the Kospi of South Korea added 0.4 percent. Japanese markets were closed for a holiday.