Stocks recoup early loss and are flat in Friday trade
By ALEX VEIGA
AP Business Writer
The major U.S. stock indexes were little changed in afternoon trading Friday after recouping losses from earlier in the day. Real estate, consumer goods and technology stocks were among the biggest gainers, while energy, health care and phone company companies were laggards. The market was coming off a post-election rally that pushed the Dow Jones industrial average to a new high a day earlier.
KEEPING SCORE: The Dow rose 9 points, or 0.1 percent, to 18,817 as of 2:25 p.m. Eastern time. The Standard & Poor’s 500 index fell 5 points, or 0.3 percent, to 2,161. The Nasdaq composite index gained 5 points, or 0.1 percent, to 5,215. Despite its small slide Friday, the S&P 500 was headed for its biggest weekly gain in two years.
THE QUOTE: After a weeklong rally in the Dow and S&P 500, investors were doing a little bit of profit-taking Friday, said J.J. Kinahan, TD Ameritrade’s chief strategist. “The sectors that have done well all week are coming back a bit now, but have been under pressure all day.”
TRUMP EFFECT: Investors are gauging the possible implications of policy changes that may come about when the Trump administration takes office in January, including tax cuts, infrastructure spending and deregulation. All week, traders have been bidding up share in banks, industrial companies and health care stocks, while pulling out of consumer goods companies, utilities and phone company stocks. They’ve also sold off bonds, expecting Trump’s policies might spur inflation, which would lead to higher interest rates, both of which are bad for bonds.
GRAPHIC RESULTS: Nvidia surged 26.3 percent after the maker of graphics processors for gaming and other applications posted better-than-expected quarterly results late Thursday. The stock gained $17.79 to $85.56.
STRONG QUARTER: Nordstrom climbed $2.30, or 4.1 percent, to $58.33 after the department store operator reported earnings that easily beat analysts’ forecasts.
MOUSE HOUSE: Walt Disney rose 3.2 percent. The company, which owns Marvel, Star Wars and its own Pixar and Disney Studios, said is forging ahead with new streaming deals involving Netflix, Hulu and others. The stock added $2.99 to $97.95.
ENERGY SLUMP: Several energy companies were down as oil prices headed lower. Murphy Oil slid $1.25, or 4.4 percent, to $27.46, while Chesapeake Energy fell 29 cents, or 5.1 percent, to $5.41. Hess lost $1.78, or 4 percent, to $47.86.
GHOSTLY MALLS: Michael Kors fell 6.6 percent after the luxury retailer issued a disappointing forecast, citing lower mall traffic. Its shares lost $3.40 to $48.36.
MARKETS OVERSEAS: Germany’s DAX rose 0.4 percent, while France’s CAC 40 slid 0.9 percent. Britain’s FTSE 100 fell 1.4 percent. Earlier in Asia, Hong Kong’s Hang Seng index lost 1.4 percent, while South Korea’s Kospi fell 0.9 percent. Japan’s benchmark Nikkei 225 added 0.2 percent.
ENERGY: Benchmark U.S. crude was down $1.35, or 3 percent, to $43.32 a barrel in New York. Brent crude, used to price international oils, was down $1.25, or 2.7 percent, to $44.59 a barrel in London.
METALS: The price of gold tumbled $42.10, or 3.3 percent, to $1,224.30 an ounce, while silver slid $1.36, or 7.2 percent, to $17.38 an ounce. Copper fell 4 cents, or 1.6 percent, to $2.51 a pound.
CURRENCIES: The U.S. currency fell to 106.74 yen from 106.83 yen late Thursday. The euro slid to $1.0846 from $1.0890. The Mexican peso continued to drop, as investors worried about Trump’s promises to scrap trade deals and build a wall along the border. The dollar was up another 1.7 percent at 20.87 pesos, putting it up 20.9 percent this year. Bond trading was closed in observance of Veterans’ Day.