US Stocks Mostly Lower 09/17 09:40
U.S. stocks were mostly lower in early trading Tuesday as investors await
updates on oil output at a damaged Saudi Aramco facility and look ahead to a
key interest rate decision from the Federal Reserve.
NEW YORK (AP) -- U.S. stocks were mostly lower in early trading Tuesday as
investors await updates on oil output at a damaged Saudi Aramco facility and
look ahead to a key interest rate decision from the Federal Reserve.
Energy companies gave back some of Monday's gains as the price of oil
retreated. U.S. oil dropped 5.4% to $59.50 a barrel, while Brent, the
international benchmark, fell 6.1% to $64.82. Oilfield services company
Schlumberger fell 4.1% and oil producer Hess dropped 5.9%.
On Monday, oil prices spiked more than 14% over concerns that an attack on
Saudi Arabia's biggest oil processing facility could limit supplies from the
world's biggest oil exporter. Investors will be closely watching an update
later Tuesday from Saudi Arabia's energy minister.
Banks and industrial companies also fell. JPMorgan and Bank of America shed
1%. 3M fell 1.4% and Caterpillar fell 1.2%.
Investors shifted to a more defensive position in the early going, with
consumer product makers and utilities among the companies making gains. Bonds
rose and the yield on the 10-year Treasury fell to 1.82% from 1.84% late Monday.
Technology stocks were also holding well as a gain for Microsoft helped
counter a slide in Intel.
Volatile oil prices and the lingering U.S.-China trade dispute loom over the
market as the Federal Reserve begins a two-day meeting to determine interest
rate policy. Investors are expecting the central bank to cut its short-term
rate on Wednesday to help protect the economy from threats to growth.
It would be the central bank's second such cut in two months after not
cutting rates for a decade.
KEEPING SCORE: The S&P 500 index fell 0.1% as of 10:15 a.m. Eastern time.
The Dow Jones Industrial Index fell 71 points, or 0.3%, to 27,004. The Nasdaq
OVERSEAS: Stocks in Europe moved broadly lower after a new survey showed a
decline in consumer confidence within Germany, the continent's largest economy.
Chinese benchmarks led declines in Asia after the credit ratings agency Moody's
downgraded Hong Kong, citing its recent political turmoil.
CRACKED GLASS: Corning fell 7.2% after the glassmaker warned investors that
weak demand will likely hurt two of its units. The company expects lower third
quarter volume for its display technologies unit, which makes display screens
for electronic devices. It also expects a sales decline for its optical
communications unit, which makes fiber optic cables.