US Stocks Higher, Led By Tech 09/23 12:07
U.S. stocks turned slightly higher in midday trading Monday, led by
technology companies and makers of household products.
NEW YORK (AP) -- U.S. stocks turned slightly higher in midday trading
Monday, led by technology companies and makers of household products.
The market turned higher in late morning after wobbling lower earlier as
investors digested some weak economic figures out of Germany.
Chipmakers led the gains in tech stocks. Micron Technology rose 1.8% and
Qualcomm gained 1.6%.
Procter & Gamble and PepsiCo were among the makers of consumer goods that
posted gains. Utilities also showed small gains. Investors typically shift to
both those sectors and bonds when they are seeking safer places to put their
money amid worries about economic growth.
Bond prices rose and pushed down yields on 10-year Treasury notes to 1.69%
from 1.75% late Friday, another sign investors were seeking to avoid some risk.
Health care stocks were the biggest laggards. Medical supply company
McKesson dropped 4% while CVS lost 1.4%.
Investors are preparing for the start of the next round of corporate
earnings and several key companies this week could provide a clearer picture of
the U.S.-China trade war's ongoing impact. Nike, which could be a gauge of the
trade war's effect on shoemakers and retailers, will report fiscal first
quarter results on Tuesday. Technology company Micron will report its fiscal
fourth quarter results on Thursday.
KEEPING SCORE: The S&P 500 rose just under 0.1% as of noon Eastern time. The
Dow Jones Industrial Average rose 20 points, or 0.1%, to 26,959. The Nasdaq was
OVERSEAS: Stocks in Europe fell broadly as Germany's economy contracted to
its lowest level in nearly seven years, according to IHS Markit. Germany is
Europe's largest economy and often acts as a gauge for the continent's economic
health. The latest data adds to worries that Europe is facing a slowdown in
economic growth. The European Central Bank is urging governments to spend more
on stimulus as economic growth stalls.
Asian stocks edged lower.
MARKET WORRIES: Stocks are coming off of their first week of losses after
three straight gains and investors are keeping a close watch on the United
Nations General Assembly this week.
Oil prices and the energy sector could experience more volatility as
President Donald Trump seeks a coalition to confront Iran after the U.S. blamed
it for last week's strike on a Saudi Arabian oil facility.
Prospects for a trade war resolution seem to have once again cooled
following comments by Trump that he doesn't necessarily need to make a deal
before the next U.S. elections in 2020. Chinese officials canceled a planned
trip to farms in Montana and Nebraska, an action that raised concerns of yet
another halt in trade negotiations.
U.S. and Chinese officials are expected to meet in October to restart trade
THINLY STOCKED: E-commerce company Overstock.com fell 15.2% after the
company cut its financial forecast partly because tariffs have increased the
costs of goods from China. It also named Jonathan Johnson as its new CEO. He
has been acting CEO since August when Patrick Byrne resigned.
CRYPTO FUTURE: Intercontinental Exchange Inc., the owner of the New York
Stock Exchange, entered the bitcoin futures game over the weekend. Bakkt
Bitcoin Futures contracts are trading in ICE's federally regulated markets and
are payable in digital currency. Bakkt is the firm behind the contracts.
Competitor CME Group launched its digital currency futures in 2017 and those
are payable in cash.