Stocks Edge Lower as Investors Assess Economy, Earnings
- Duration: 4:32
- Updated: 25 Mar 2015
U.S. stocks moved lower in early afternoon trading Tuesday, as investors assessed the latest news on consumer prices and some company earnings. Declines were led by utilities.
McCormick, a spice and seasoning company, was a top gainer after reporting better-than-expected earnings and revenue. Shares of Freeport-McMoRan fell after the mining company said it said it would slash its quarterly dividend.
KEEPING SCORE: The Standard & Poor's 500 index fell five points, or 0.3 percent, to 2,099 as of 1:57 p.m. Eastern time. The Dow slipped 48 points, or 0.3 percent, to 18,068. The Nasdaq was flat at 5,011.
CONSUMER PRICES: A modest rebound in gas costs and broad gains in other categories lifted consumer prices for the first time in four months. The consumer price index rose 0.2 percent in February, the Labor Department said Tuesday, after dropping 0.7 percent the previous month.
THE QUOTE: After surging last week when Federal Reserve policy makers suggested they were in no rush raise rates this year, stocks have been muted this week in the absence of a catalyst to move prices, said Kristina Hooper, U.S. investment strategist at Allianz Global Investors.
"We're in something of a holding pattern as markets continue to digest all that's going on," said Hooper.
POWER COMPANIES: Utilities declined the most of the 10 industry sectors in the S&P; 500. The sector is the worst performing group in the index this year, falling 5.8 percent.
These stocks typically pay dividends that are high relative to their companies' share prices. They were in demand last year, when government bond yields fell, and investors wanted them for the level of income they were no longer able to get from bonds.
Now, they are less popular because many investors think that the Federal Reserve will raise interest rates later this year. That means that the yield on safer bonds should eventually rise, making utilities less attractive by comparison.
LOWER PAYOUT: Freeport-McMoRan Inc. will cut its quarterly dividend by 84 percent due to falling commodity prices, the Phoenix-based mining company said Tuesday. The company's stock fell 28 cents, or 1.4 percent, to $19.05.
SPICY EARNINGS: McCormick & Co., the spices and seasoning company, rose after it reported earnings and revenues that beat expectations of Wall Street analysts. The company said it was planning for a "strong grilling campaign." The stock rose $2.22, or 3 percent, to $75.42.
EUROZONE ON THE UP: Figures for the eurozone suggested that the region's recovery may be gaining momentum. In its monthly survey, financial information company Markit said its purchasing managers' index for the region rose to 54.1 points in March from 53.3 in February. That put the index at its highest level since May 2011.
EUROPE'S DAY: In Europe, France's CAC 40 rose 0.7 percent while Germany's DAX gained 1 percent. Britain's FTSE 100 crept down 0.3 percent.
ENERGY: Benchmark U.S. crude rose 22 cents to $47.67 per barrel in New York. Brent crude, a benchmark for international oils, fell 39 cents to $55.53 in London.
BONDS AND CURRENCIES: The yield on the 10-year Treasury note was little changed from Monday at 1.90 percent.
The dollar gained against the euro and the Japanese yen. Against the euro, the U.S. currency traded at $1.0922 and was at 119.75 yen.
METALS: Gold rose $3.70, or 0.3 percent, to $1,191.40 an ounce. Silver gained 9.2 cents, or 0.5 percent, to $16.98 an ounce. Copper climbed 1.4 cents, or 0.5 percent, to $2.83 per pound.
http://wn.com/Stocks_Edge_Lower_as_Investors_Assess_Economy,_Earnings
U.S. stocks moved lower in early afternoon trading Tuesday, as investors assessed the latest news on consumer prices and some company earnings. Declines were led by utilities.
McCormick, a spice and seasoning company, was a top gainer after reporting better-than-expected earnings and revenue. Shares of Freeport-McMoRan fell after the mining company said it said it would slash its quarterly dividend.
KEEPING SCORE: The Standard & Poor's 500 index fell five points, or 0.3 percent, to 2,099 as of 1:57 p.m. Eastern time. The Dow slipped 48 points, or 0.3 percent, to 18,068. The Nasdaq was flat at 5,011.
CONSUMER PRICES: A modest rebound in gas costs and broad gains in other categories lifted consumer prices for the first time in four months. The consumer price index rose 0.2 percent in February, the Labor Department said Tuesday, after dropping 0.7 percent the previous month.
THE QUOTE: After surging last week when Federal Reserve policy makers suggested they were in no rush raise rates this year, stocks have been muted this week in the absence of a catalyst to move prices, said Kristina Hooper, U.S. investment strategist at Allianz Global Investors.
"We're in something of a holding pattern as markets continue to digest all that's going on," said Hooper.
POWER COMPANIES: Utilities declined the most of the 10 industry sectors in the S&P; 500. The sector is the worst performing group in the index this year, falling 5.8 percent.
These stocks typically pay dividends that are high relative to their companies' share prices. They were in demand last year, when government bond yields fell, and investors wanted them for the level of income they were no longer able to get from bonds.
Now, they are less popular because many investors think that the Federal Reserve will raise interest rates later this year. That means that the yield on safer bonds should eventually rise, making utilities less attractive by comparison.
LOWER PAYOUT: Freeport-McMoRan Inc. will cut its quarterly dividend by 84 percent due to falling commodity prices, the Phoenix-based mining company said Tuesday. The company's stock fell 28 cents, or 1.4 percent, to $19.05.
SPICY EARNINGS: McCormick & Co., the spices and seasoning company, rose after it reported earnings and revenues that beat expectations of Wall Street analysts. The company said it was planning for a "strong grilling campaign." The stock rose $2.22, or 3 percent, to $75.42.
EUROZONE ON THE UP: Figures for the eurozone suggested that the region's recovery may be gaining momentum. In its monthly survey, financial information company Markit said its purchasing managers' index for the region rose to 54.1 points in March from 53.3 in February. That put the index at its highest level since May 2011.
EUROPE'S DAY: In Europe, France's CAC 40 rose 0.7 percent while Germany's DAX gained 1 percent. Britain's FTSE 100 crept down 0.3 percent.
ENERGY: Benchmark U.S. crude rose 22 cents to $47.67 per barrel in New York. Brent crude, a benchmark for international oils, fell 39 cents to $55.53 in London.
BONDS AND CURRENCIES: The yield on the 10-year Treasury note was little changed from Monday at 1.90 percent.
The dollar gained against the euro and the Japanese yen. Against the euro, the U.S. currency traded at $1.0922 and was at 119.75 yen.
METALS: Gold rose $3.70, or 0.3 percent, to $1,191.40 an ounce. Silver gained 9.2 cents, or 0.5 percent, to $16.98 an ounce. Copper climbed 1.4 cents, or 0.5 percent, to $2.83 per pound.
- published: 25 Mar 2015
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