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Stocks Fall as Crude Oil Prices Drop 4%07/16 15:39

Stocks Fall as Crude Oil Prices Drop 4%07/16 15:39

   Major U.S. indexes closed mostly lower Monday as investors bought banks but 
sold most other types of stocks, including health care and technology 
companies. Energy stocks sank along with oil prices.

   NEW YORK (AP) -- Major U.S. indexes closed mostly lower Monday as investors 
bought banks but sold most other types of stocks, including health care and 
technology companies. Energy stocks sank along with oil prices.

   Oil prices fell more than 4 percent after U.S. officials suggested the U.S. 
will take a softer stance on countries that import oil from Iran after 
sanctions on Iran's energy sector go back into effect in November. Banks rose 
along with interest rates as well as a solid second-quarter report from Bank of 
America. A strong forecast gave Deutsche Bank its biggest gain in more than a 
year.

   Amazon jumped in midday trading as investors expected strong sales during 
the company's annual Prime Day promotion, one of its largest sales days of the 
year, but the stock gave up much of that gain following problems with the 
company's website. Most other groups of stocks lost ground, and about 
two-thirds of the companies on the New York Stock Exchange finished lower. 
Smaller companies fared the worst.

   The S&P 500 index lost 2.88 points, or 0.1 percent, to 2,798.43. The Dow 
Jones Industrial Average rose 44.95 points, or 0.2 percent, to 25,064 as 
Goldman Sachs, JPMorgan Chase, and Boeing climbed. The Nasdaq composite fell 
20.26 points, or 0.3 percent, to 7,805.72.

   The Russell 2000 index of smaller-company stocks declined 8.48 points, or 
0.5 percent, to 1,678.60.

   Stocks finished at five-month highs Friday as investors remained optimistic 
about the U.S. economy even as they worried about the trade war between the 
U.S. and China.

   Bank of America's second-quarter profits jumped 33 percent and surpassed 
Wall Street estimates. Like other big banks, it got a big boost from the 
corporate tax cut that passed at the end of 2017 and from higher interest 
rates. Its stock rose 4.3 percent to $29.78.

   Deutsche Bank jumped 8 percent to $12.14 after it said its earnings will be 
considerably higher than analysts expected. Deutsche Bank has taken three years 
of losses based on high costs and big fines and penalties linked to past 
misconduct, and the stock is down 36 percent in 2018.

   Benchmark U.S. crude fell 4.2 percent to $68.06 in New York. Brent crude, 
used to price international oils, fell 4.6 percent to $71.84 a barrel in London.

   Treasury Secretary Steven Mnuchin and Secretary of State Mike Pompeo said 
countries and businesses that import oil from Iran could avoid penalties if 
they reduce those imports significantly. Recently the U.S. government was 
pressuring countries to stop buying Iranian oil entirely. The U.S. will 
reinstitute sanctions on Iran's energy sector in early November as a result of 
the American withdrawal from the Iran nuclear deal.

   Tribune Media and Sinclair Broadcast Group both nosedived after the Federal 
Communications Commission said it has concerns about Sinclair's plan to buy 
Tribune. Right-leaning TV station operator Sinclair is the largest operator of 
local TV stations in the U.S., and it has proposed selling some of its own TV 
stations as part of the $3.9 billion deal.

   Tribune Media plunged 16.7 percent to $32.12 and Sinclair skidded 11.7 
percent to $29.10.

   Online retail giant Amazon jumped as much as 1.6 percent at the start of its 
Prime Day promotion, but finished with a gain of 0.5 percent at $1,822.49. 
Still, Amazon is up 56 percent in 2018 and is responsible for about 19 percent 
of the total return of the S&P 500 over that time, according to S&P Dow Jones 
Indices.

   Netflix rose 1.2 percent to $400.48 during the day, but plunged 13.1 percent 
in aftermarket trading as its estimate for third-quarter subscriber growth fell 
short of analysts' projections. The streaming video company's shares have 
doubled this year, but if the late move is any indication the stock could be on 
track for its biggest loss in two years on Tuesday.

   Bond prices fell. The yield on the 10-year Treasury note rose to 2.85 
percent from 2.83 percent. High-dividend companies like real estate investment 
trusts fell as investors who wanted income bought bonds instead.

   Arconic, a company that makes aluminum parts for companies in the aerospace 
and automobile industries, soared after the Wall Street Journal reported that 
private equity firms are interested in buying it. The stock climbed 10.5 
percent to $19.20, which gave Arconic a market value of about $9.3 billion. The 
stock has fallen almost 40 percent since mid-January.

   Alliance Data Systems, which manages loyalty and rewards programs for 
retailers, fell 10.1 percent to $218.97 after it said late and delinquent 
payments increased in the second quarter.

   Gold fell 0.1 percent to $1,239.70 an ounce. Silver was unchanged at $15.81 
an ounce. Copper lost 0.4 percent to $2.76 a pound.

   Wholesale gasoline skidded 5 percent to $2 a gallon. Heating oil dropped 3.7 
percent to $2.05 a gallon. Natural gas added 0.3 percent to $2.76 per 1,000 
cubic feet.

   The dollar stayed at 112.30 yen. The euro climbed to $1.1714 from $1.1677. 

   Germany's DAX rose 0.2 percent while the CAC 40 in France dipped 0.4 
percent. The FTSE 100 index in Britain dropped 0.8 percent. Hong Kong's Hang 
Seng edged 0.1 percent higher and the Kospi in South Korea fell 0.4 percent.


(BE)