US Stocks Slip After Early Gains, But Remain Near Records

U.S. stocks are slightly lower Tuesday after giving up an early gain. Energy companies and banks are taking modest losses. Retailers including DSW and Tiffany are climbing after strong quarterly reports.

Major stock indexes reached record highs after strong gains the past two days.

KEEPING SCORE: The S&P 500 index fell 1 point, or 0.1 percent, to 2,895 as of noon Eastern time. The Dow Jones Industrial Average rose 13 points, or 0.1 percent, to 26,063. The Nasdaq composite fell 1 point to 8,016. The Russell 2000 index of smaller-company stocks dipped 3 points, or 0.2 percent, to 1,724.

Canada’s foreign minister is traveling to Washington Tuesday to restart talks on trade, a day after stocks rose on news that the Trump administration had reached a preliminary deal with Mexico to replace the North American Free Trade Agreement.

RETAIL RESULTS: Shoe retailer DSW surged 20.1 percent to $32.67 percent after reporting second-quarter results that were far stronger than analysts expected. Sales surpassed Wall Street forecasts, and the company raised its estimates for the rest of the year.

Tiffany did the same and its stock jumped added 1.1 percent to $131.31 DSW stock has climbed 53 percent in 2018 and Tiffany has rallied 26 percent.

Like many other retailers, they had slumped in recent years as they faced growing competition from online retailers and sinking sales in stores. Their stocks have climbed recently as they improved their online businesses, but when they fall short of expectations the stocks have taken precipitous drops. That happened to Macy’s, Gap and J.C. Penney in the second quarter.

On Tuesday Best Buy fell 7 percent to $75.97 after issuing a disappointing forecast for the current quarter.

TECH ON TOP: Apple added 0.6 percent to $219.31 as technology companies, the most valuable part of the S&P 500, did better than the rest of the market. Chipmaker Xilinx rose 1.4 percent to $76.26 and Qualcomm gained 2.7 percent to $69.17.

CURRENCIES: The dollar continued to slip as investors reacted to signs the U.S. was making progress in resolving some of its trade disputes. The Trump administration has announced numerous tariffs this year, and those tariffs have made the dollar stronger.

The dollar fell to 111.06 yen from 111.10 yen. The euro rose to $1.1722 from $1.1680.

COLD SOUP: Campbell Soup lost 1.4 percent to $40.15 after the New York Post reported that the company is wrapping up a strategic review and is unlikely to try to sell itself. Campbell announced the review in May along with the departure of CEO Denise Morrison.

The Post reported in July that activist investor Daniel Loeb is pushing the company to sell, and if it decides not to, he could launch a bid for control of the company.

BONDS: Bond prices fell. The yield on the 10-year Treasury note rose to 2.87 percent from 2.85 percent.

High dividend stocks including utilities, phone companies and household goods makers continued to lag behind the rest of the market, as they did on Monday.

GOOD NEWS: News and financial information company Thomson Reuters jumped 3.9 percent to $44.93 after it announced an offer for up to $9 billion in company stock. It offered to pay between $42 and $47 a share.

ENERGY: Benchmark U.S. crude dipped 0.2 percent to $68.72 a barrel in New York while Brent crude, used to price international oils, rose 0.1 percent to $76.26 a barrel in London.

OVERSEAS: France’s CAC 40 rose 0.4 percent while Germany’s DAX gained 0.1 percent. Britain’s FTSE 100 jumped 0.5 percent.

Japan’s benchmark Nikkei 225 rose 0.1 percent. South Korea’s Kospi edged up 0.2 percent and Hong Kong’s Hang Seng added 0.2 percent.


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