Banks pull US stocks away from records as seven-day winning streak ends

Banks pull US stocks away from records as seven-day winning streak ends

A seven-day winning streak for stocks came to a quiet end on Tuesday as banks, especially smaller ones, dropped along with bond yields and interest rates.

Investors snapped up government bonds and high-yield stocks including phone companies and utilities.

As bond prices rose, yields and interest rates fell. That reduced the profits financial institutions can make from mortgages and other types of loans.

Energy companies fell to their lowest prices in a year. Technology companies continued to soar while airlines slumped as investors worried that the government could expand a ban on laptops in passenger cabins during international flights, which could affect business travel.

Still, stocks remain close to their record highs.

The Standard & Poor's 500 index lost 2.91 points, or 0.%, to 2,412.91. The Dow Jones industrial average fell 50.81 points, or 0.2%, to 21,029.47.

The Nasdaq composite dipped 7 points, or 0.1%, to 6,203.19. The Russell 2000 index of smaller-company stocks tumbled 11.05 points, or 0.8%, to 1,371.19.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.21% from 2.25% late Friday.

With interest rates falling, JPMorgan Chase declined 1.46 dollars, or 1.7%, to 83.90 dollars. Smaller banks fell harder, as Hope Bancorp dropped 67 cents, or 3.7%, to 17.48 dollars and First Financial Bancorp sank 75 cents, or 2.9% to 25.05 dollars.

Oil prices recovered from an early stumble and finished only slightly lower, but energy companies continued to fall.

Hess dropped 1.47 dollars, or 3.1%, to 46.67 dollars and Schlumberger shed 85 cents, or 1.2%, to 68.74 dollars.

The S&P 500 index of energy companies reached its lowest level in a year.

The dollar declined to 110.78 yen from 111.19 yen. The euro rose to 1.1188 dollars from 1.1176 dollars.

The FTSE 100 index in Britain fell 0.3% and the French CAC 40 sank 0.6%. Germany's DAX dipped 0.2%. In Japan, the Nikkei 225 finished nearly flat and South Korea's Kospi dropped 0.4%. Markets in Hong Kong were closed for a holiday.


More in this Section

EOn to cut between 500 and 600 jobs in UKEOn to cut between 500 and 600 jobs in UK

How does the Pixel 4 compare to the iPhone 11 and Samsung Galaxy S10?How does the Pixel 4 compare to the iPhone 11 and Samsung Galaxy S10?

Transport and Brexit top worry listTransport and Brexit top worry list

Limerick waste-to-energy firm sues heat exchange system supplierLimerick waste-to-energy firm sues heat exchange system supplier


To instantly power up your look, veer towards the hard shoulder.Bold shoulder: How to instantly power up your look

Plums are a wonderful autumn fruit, useful for all sorts of recipes both sweet and savoury. In Ireland we are blessed with wonderfully sweet plums.Currabinny Cooks: Juicy plums work for both sweet and savoury dishes

The rise of home skincare devices doesn't mean that salons and clinics no longer serve a purpose.The Skin Nerd: Don’t try this at home — new treatments in the salon

Millions of gamers watched Fortnite reach breaking point on Sunday night, with ten seasons of mysterious storyline culminating in meteors hitting the island and everything disappearing.GameTech: End of beginning for Fortnite as Chapter 2 finally goes live

More From The Irish Examiner