Banks Lead Stocks Lower, Erasing Some of Prior Day's Gains

Associated Press |

U.S. stocks declined in early trading Tuesday, giving up many of the market's gains from a day earlier. Losses in banks, technology stocks and industrial companies outweighed gains elsewhere in the market. Homebuilders slumped on renewed concerns that the outlook for home sales is dimming. Bond prices rose, sending yields sharply lower.

KEEPING SCORE: The S&P 500 index fell 17 points, or 0.6 percent, to 2,772 as of . The Dow Jones Industrial Average dropped 206 points, or 0.8 percent, to 25,619. The Nasdaq composite lost 48 points, or 0.7 percent, to 7,392. The Russell 2000 index of smaller-company stocks gave up 9 points, or 0.6 percent, to 1,539.

U.S. stock markets will be closed Wednesday in observance of a national day of mourning for former President George H.W. Bush.

HOUSING HICCUP: Homebuilders traded lower after luxury homebuilder Toll Brothers  (TOL) reported fiscal fourth-quarter earnings that topped Wall Street's forecasts, but also issued a cautious assessment of the housing market. Toll's shares slumped 9.5 percent to $30.33.

TAKING A BITE: Apple  (AAPL) fell 2.1 percent to $180.94 after the consumer electronics giant was downgraded by HSBC analysts, citing the possibility that iPhone volume and value growth may moderate due to a saturated mobile phone market.

DISAPPOINTING DOLLAR: Discount retail chain Dollar General  (DG) slid 5.6 percent to $105.50 after the company reported weak quarterly results.

REVVED UP: AutoZone AZO climbed 4.2 percent to $859.11 after the auto parts retailer delivered third-quarter earnings that exceeded analysts' forecasts.

ENERGY: Oil prices headed higher ahead of an OPEC meeting on Thursday, where members are expected to agree to cut output in 2019. Benchmark U.S. crude rose 0.3 percent to $53.13 per barrel in New York. Brent crude, the international standard, added 1 percent to $62.28 per barrel in London.

BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.95 percent from 2.99 percent late Monday. The slide in bond yields weighed on bank stocks. Citigroup fell 2.8 percent to $63.36.

CURRENCIES: The dollar weakened to 112.91 yen from 113.69 yen late Monday. The euro strengthened to $1.1393 from $1.1342. The British pound gained to $1.2746 from $1.2728 after a top official at the European Union's highest court advised that Britain can unilaterally change its mind about leaving the EU as scheduled on .

MARKETS OVERSEAS: In Europe, Germany's DAX fell 0.6 percent, while France's CAC 40 dropped 0.4 percent. The FTSE 100 index of leading British shares slid 0.4 percent. Major indexes in Asia finished mixed. Japan's Nikkei 225 index gave up 2.4 percent and the Kospi in South Korea lost 0.8 percent. Hong Kong's Hang Seng added 0.3 percent. The S&P ASX/200 in Australia gave up 1 percent.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AZO AutoZone Inc. 863.56 9.38 1.10 41,462 Trade
TOL Toll Brothers Inc. 32.66 0.70 2.19 391,854 Trade
DG Dollar General Corporation 103.46 0.34 0.33 292,065 Trade
AAPL Apple Inc. 166.03 2.09 1.27 6,990,652 Trade

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