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Health care companies, banks help pull US stocks lower

October 22, 2018 - 11:02 am
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U.S. stocks veered broadly lower in early trading Monday as losses in health care companies and banks outweighed gains elsewhere. Energy companies declined along with the price of crude oil. Toy makers slumped after Hasbro reported quarterly results that fell well short of Wall Street's expectations.

KEEPING SCORE: The S&P 500 index fell 12 points, or 0.5 percent, to 2,755 as of 10:12 a.m. Eastern Time. The Dow Jones Industrial Average lost 90 points, or 0.4 percent, to 25,353. The Nasdaq slid 14 points, or 0.2 percent, to 7,434. The Russell 2000 index of smaller-company stocks picked up 2 points, or 0.1 percent, to 1,544.

EARNINGS SEASON: Investors have been worried in recent weeks about potential threats to corporate growth, including rising interest rates, trade tensions between the U.S. and China, and some sluggish reports about housing construction and sales. This week traders' focus turns to corporate earnings as companies roll out their latest quarterly results over the next couple of weeks.

BROKEN TOYS: Hasbro slumped 5.6 percent to $92.42 after the toy maker reported disappointing third-quarter results, partly due to lost sales following the demise of Toys R Us. Rival Mattel also declined, shedding 2.1 percent to $13.92.

ON THE HOT SEAT: Lennox International shares fell 6.4 percent to $180.85 after the maker of residential heating and cooling products reported quarterly revenue that fell short of analysts' forecasts. The company also lowered its fiscal year earnings guidance.

COSTLY DELAY: Bristol-Myers Squibb declined 5.4 percent to $51.39 after the drugmaker said regulators extended a review of a cancer treatment regimen by three months, delaying its approval.

ENERGY: Benchmark U.S. crude fell 0.6 percent to $68.71 per barrel in New York. Brent crude, used to price international oils, slid 0.4 percent to $79.47 per barrel in London.

The slide in oil prices weighed on energy stocks. Halliburton fell 2.5 percent to $36.59.

BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury fell to 3.18 percent from 3.19 percent late Friday.

CURRENCY: The dollar strengthened to 112.77 yen from 112.60 yen on Friday. The euro fell to $1.1479 from $1.1510.

MARKETS OVERSEAS: Germany's DAX slipped 0.1 percent and France's CAC-40 lost 0.3 percent. Britain's FTSE 100 rose 0.3 percent. In Asia, the Hang Seng in Hong Kong surged 2.3 percent, while Japan's Nikkei 225 index reversed early losses, gaining 0.4 percent. The Kospi in South Korea added 0.3 percent. Australia's S&P-ASX 200 countered the trend, shedding 0.6 percent. Shares rose in Taiwan, Singapore and Indonesia, but fell in Thailand.

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