In this evening Friday, Feb. 17, 2017, photo, an American flag hangs on the front of the New York Stock Exchange. European stocks declined while most Asian markets rose Friday, April 21, 2017, ahead of the first round of voting in France's closely watched presidential election. (AP Photo/Peter Morgan)
NEW YORK (AP) — U.S. stocks are lower Friday after a big gain the day before. Banks are down with bond yields and health care companies are also slumping. Indexes pared their losses after President Donald Trump said his administration will release a tax reform proposal next week that includes a large tax cut. Toy maker Mattel is nosediving after it reported a big drop in sales.
KEEPING SCORE: The Standard & Poor's 500 index lost 6 points, or 0.3 percent, to 2,349 as of 3 p.m. Eastern time. The Dow Jones industrial average dipped 10 points to 20,569. The Nasdaq composite fell 10 points, or 0.2 percent, to 5,906. The Russell 2000 index of smaller-company stocks fell 3 points, or 0.2 percent, to 1,380.
ENERGY: Meanwhile benchmark U.S. crude shed $1.09, or 2.1 percent, to $49.62 a barrel in New York. Brent crude, used to price international oils, fell $1.03, or 1.9 percent, to $51.96 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 $2.01, or 2.6 percent, to $74.50 and competitors Halliburton and Baker Hughes both fell, too. Elsewhere, pipeline company Kinder Morgan shed 32 cents, or 1.5 percent, to $20.40 as energy companies took broad losses.
TRUMP'S TAX DAY: President Trump told the Associated Press that his administration will unveil a tax reform that will include a "massive" tax cut for individuals and businesses. He did not provide details. Treasury Secretary Steven Mnuchin has said the administration hopes to pass a tax package before the end of the year. Stocks and bond yields both narrowed their losses after Trump's statement shortly before 2 p.m.
THE QUOTE: Scott Wren, senior global equity strategist for the Wells Fargo Investment Institute, says he thinks a corporate tax cut is more likely to pass Congress and become law than a tax cut for individuals. But in either case, he says he doesn't expect major tax changes this year.
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 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.
"The stock market's been willing to wait to see what, if anything, comes out of Washington," said Wren. He adds that stock prices aren't too high even though they've been breaking records lately.
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 $3.13, or 12.4 percent, to $22.08.
Mattel also reported disappointing fourth-quarter results in January and its stock is down 20 percent this year.
HUMMING ALONG: Honeywell's profit and sales were better than expected, and the industrial conglomerate raised its profit projection for the year. The stock jumped $3.15, or 2.5 percent, to $126.92. 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 $4.94, or 5 percent, to $104.53.
While General Electric met Wall Street expectations for the quarter, its stock lost 57 cents, or 1.9 percent, to $29.71. 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: Health care companies moved lower. Biotech drugmaker Alexion Pharmaceuticals lost $3, or 2.5 percent, to $115.72 and Merck declined 52 cents to $62.03. Pharmacy benefits manager Express Scripts dipped 67 cents, or 1 percent, to $66.38.
BONDS: Bond prices rose. The yield on the 10-year Treasury note slid to 2.23 percent from 2.24 percent. Bank of America fell 25 cents, or 1.1 percent, to $22.83 and Synchrony Financial lost 40 cents, or 1.2 percent, to $33.46, as lower bond yields mean banks can't charge as much for loans.
OTHER ENERGY TRADING: Wholesale gasoline lost 3 cents to $1.64 a gallon and heating oil fell 3 cents to $1.55 a gallon. Natural gas gave up 6 cents to $3.10 per 1,000 cubic feet.
METALS: Gold rose $5.30 to $1,289.10 an ounce. Silver lost 16 cents to $17.86 an ounce. Copper remained at $2.54 a pound.
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