Losses for banks, health care and energy firms sink stocks
By MARLEY JAY, AP Markets Writer
NEW YORK (AP) — U.S. stocks are lower Friday after a big gain the day before. Banks are down with bond yields and interest rates. Health care companies are also slumping and energy companies are falling as oil prices decrease and oilfield services firm Schlumberger announced lower revenue than investors had forecast. Toy maker Mattel is nosediving after it reported a big drop in sales.
KEEPING SCORE: The Standard & Poor's 500 index lost 9 points, or 0.4 percent, to 2,346 as of 1:35 p.m. Eastern time. The Dow Jones industrial average dipped 42 points, or 0.2 percent, to 20,536. The Nasdaq composite fell 14 points, or 0.2 percent, to 5,902. The Russell 2000 index of smaller-company stocks fell 6 points, or 0.5 percent, to 1,377.
WEEKLY WRAPUP: Stocks are on pace for a solid gain this week, but they've wandered up and down over the last few weeks. That may continue for a while. Next Friday the government will release its report on first-quarter GDP growth, a critical look at the economy that investors pay a lot of attention to. On the same day, the federal government is scheduled to reach its borrowing limit, which could trigger a government shutdown unless Congress agrees to extend it.
ENERGY: Meanwhile benchmark U.S. crude shed $1.31, or 2.6 percent, to $49.40 a barrel in New York. Brent crude, used to price international oils, fell $1.23, or 2.3 percent, to $51.76 a barrel in London.
Schlumberger, the world's biggest oilfield services company, fell after it reported less revenue than analysts had forecast. The company said revenue in China, Russia and the North Sea fell more than it had expected. The stock gave up $2.04, or 2.7 percent, to $74.47 and competitors Halliburton and Baker Hughes both fell, too. Elsewhere, pipeline company Kinder Morgan shed 33 cents, or 1.6 percent, to $20.39 as energy companies took broad losses.
BARBIE BUMMER: Mattel, the largest toy company in the U.S., said its sales dropped 15 percent in the fiscal first quarter as it dealt with holiday hangover of too many items unsold. The company's revenue totaled $735.6 million, which was $67 million less than expected, according to FactSet. The stock lost $2.94, or 11.7 percent, to $22.27.
Mattel also reported disappointing fourth-quarter results in January and its stock is down almost 20 percent this year.
HUMMING ALONG: Industrial conglomerate Honeywell's profit and sales were better than expected, and the company raised its profit projection for the year. The stock jumped $2.63, or 2.1 percent, to $126.40. Aviation electronics company Rockwell Collins raised its profit and sales forecasts after its $8.6 billion purchase of former competitor B/E Aerospace. The new estimates are greater than what analysts had forecast and its stock rose $4.60, or 4.6 percent, to $104.19.
While General Electric met Wall Street expectations for the quarter, its stock lost 70 cents, or 2.3 percent, to $29.57. Citi Investment Research analyst Andrew Kaplowitz said the company had a "generally solid quarter" but didn't bring in as much cash as investors thought it would.
CATCHING A CHILL: Almost all of the health care companies in the S&P 500 index were lower. Biotech drugmaker Alexion Pharmaceuticals lost $2.57, or 2.2 percent, to $116.15 and Merck declined 52 cents to $62.03. Pharmacy benefits manager Express Scripts dipped 91 cents, or 1.4 percent, to $66.14.
BONDS: Bond prices rose. The yield on the 10-year Treasury note slid to 2.21 percent from 2.24 percent. Bank of America fell 46 cents, or 2 percent, to $22.61 and Synchrony Financial lost 54 cents, or 1.6 percent, to $33.31, as lower bond yields mean banks can't charge as much for loans.
VISA PAYS UP: Payment processing giant Visa said its profit dropped 75 percent in the fiscal second quarter, largely due to the costs of integrating its recently acquired Visa Europe into the larger company. Its results were stronger than expected, but Wall Street wasn't that impressed. The stock edged up 36 cents to $91.51.
ALOHA: Hawaiian Holdings, the corporate parent of Hawaiian Airlines, posted solid results in the first quarter and said it expects strong growth in an important revenue measurement over the next few months. The stock jumped $2, or 3.9 percent, to $53.90.
CURRENCY: The dollar dipped to 108.93 yen from 109.31 yen. The euro fell to $1.0698 from $1.0722.
OVERSEAS: France's CAC-40 retreated 0.4 percent after a big gain Thursday. Germany's DAX gained 0.2 percent and the British FTSE 100 lost 0.1 percent. The Nikkei 225 in Tokyo gained just over 1 percent and the Kospi in South Korea added 0.7 percent. Hong Kong's Hang Seng shed 0.1 percent.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP
His work can be found at http://bigstory.ap.org/journalist/marley-jayAssociated Press