US stock indexes edge higher in afternoon trading


Wall Street - US stock indexes edge higher in afternoon trading
FILE - In this Oct. 8, 2014, file photo, a Wall Street address is carved in the side of a building in New York. Stocks are opening modestly higher on Wall Street, Friday, Aug. 11, 2017, led by gains in technology companies and banks. (AP Photo/Mark Lennihan, File)

August 11, 2017 (AP)(STL.News) – Technology companies led U.S. stocks slightly higher in afternoon trading Friday, recouping some of the losses from the day before. Investors welcomed new data showing U.S. inflation at the consumer level inched higher last month, suggesting that the Federal Reserve may be less likely to raise interest rates next month. That weighed on bank shares, which were down the most.

KEEPING SCORE: The Standard & Poor’s 500 index rose 4 points, or 0.2 percent, to 2,442 as of 2:43 p.m. Eastern time. The Dow Jones industrial average added 20 points, or 0.1 percent, to 21,865. The Nasdaq composite gained 39 points, or 0.6 percent, to 6,255. The Russell 2000 index of smaller-company stocks slipped less than 1 point to 1,371. The major indexes were coming off their biggest single-day decline since May 17.

THE QUOTE: “Today’s inflation data put the Fed on pause and really diminishes the fact that there’s still some noise going around with the North Korea-U.S. situation,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

INFLATION: The Labor Department said consumer prices edged up 0.1 percent in July following no gain in June. Inflation has risen 1.7 percent over the past 12 months, suggesting that inflation pressures remain well under control. The Federal Reserve, which raised its key interest rate in March and June, has signaled it plans a third rate hike before the end of this year. But some economists say the Fed may stand pat for the rest of 2017 unless inflation accelerates in coming months.

TOUGH TALK: Tensions between the U.S. and North Korea continued to simmer early Friday. In a tweet, President Donald Trump warned of military action “should North Korea act unwisely,” noting that the U.S. is “locked and loaded.” Earlier this week, Trump said the U.S. would unleash “fire and fury” on North Korea if it continued to threaten the U.S. North Korea has announced a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

There were fewer signs of anxiousness in the markets Friday. Bond and gold prices, traditional havens for nervous investors, were little changed, and the VIX, a measure of how much volatility investors expect in stocks, slid 6.7 percent following a 44.4 percent jump the day before. It’s still the highest it’s been since May.

UP WITH TECH: Investors bid up technology sector shares. The sector was the biggest decliner on Thursday. KLA-Tencor gained $2.62, or 3 percent, to $90.17. Seagate Technology was up 2.2 percent. Investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company. Seagate shares rose 69 cents to $32.24.

BIG GAINERS: Health care stocks were among the big gainers. Perrigo rose $1.58, or 2.1 percent, to $78.43. Universal Health Services picked up $2.65, or 2.5 percent, to $108.02.

HIT THE ROAD: Camping World Holdings jumped 10.8 percent after the recreational vehicle retailer and services provider posted earnings that easily beat analysts’ forecasts. It also raised its outlook. The stock added $3.44 to $37.91.

SALES SLUMP: J.C. Penney sank 18.9 percent after the struggling department store chain reported quarterly results that fell short of Wall Street’s expectations. The company also said sales at its established stores declined for the fourth-straight quarter. The stock lost 89 cents to $3.82.

BAD LOOK: Investor concerns about slowing growth in Nvidia’s data center business weighed on the company’s shares, even though the maker of graphics chips posted earnings that beat expectations. The stock slid $9.41, or 5.7 percent, to $155.33.

SLIDING: Traders sold-off financial stocks amid speculation that the Fed will decide to hold off on raising interest rates next month. Higher interest rates can help boost banks’ revenue from loans. Brighthouse Financial shed $1.05, or 1.8 percent, to $57.45. Morgan Stanley fell 70 cents, or 1.5 percent, to $45.61.

OH SNAP: The parent company of disappearing-message app Snapchat plunged 11.4 percent after reporting weak user growth and a wider loss than analysts were expecting. Shares in Snap shed $1.57 to $12.20.

OIL: Benchmark U.S. crude rose 23 cents to settle at $48.82 a barrel on the on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 20 cents to $52.10 a barrel in London.

CURRENCIES: The dollar slipped to 109.04 yen from 109.26 late Thursday. The euro rose to $1.1812 from $1.1774.

BONDS: Bond prices were rose. The yield on the 10-year Treasury note slipped to 2.19 percent from 2.20 percent late Thursday.

MARKETS OVERSEAS: Major indexes in Europe were mixed. Germany’s DAX was flat, while France’s CAC 40 fell 1.1 percent. Britain’s FTSE 100 was down 1.1 percent. In Asia, several indexes closed lower overnight. South Korea’s Kospi lost 1.7 percent, while Hong Kong’s Hang Seng slid 2 percent. Australia’s S&P/ASX 200 dropped 1.2 percent. Japan was closed on a public holiday.

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By ALEX VEIGA, AP Business Writer – published on STL.News by St. Louis Media, LLC


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