July 20, 2018
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Stocks Finish Thursday Mixed           07/19 16:19

   Banks and other large U.S. stocks fell Thursday, but smaller companies 
climbed, making for a mixed finish on Wall Street.

   NEW YORK (AP) -- Banks and other large U.S. stocks fell Thursday, but 
smaller companies climbed, making for a mixed finish on Wall Street. Trade 
issues again weighed on the market as representatives of the auto industry told 
Congress they opposed tariffs on imported cars and car parts being proposed by 
the Trump administration.

   Major banks fell as interest rates decreased. Weak second-quarter results 
also weighed on American Express and Bank of New York Mellon. President Donald 
Trump told CNBC he is "not happy" the Federal Reserve has been raising interest 
rates, which had little effect on the stock market but did send the dollar 
slightly lower.

   Companies that make and distribute drugs fell after the Trump administration 
proposed changes to government rules on drug price rebates. Aluminum producers 
sank after Alcoa said the U.S. tariffs on imported aluminum are costing it at 
least $12 million a month.

   Representatives of car manufacturers, suppliers and dealers appeared before 
Congress along with foreign diplomats. They were seeking to head off the Trump 
administration's proposed tariffs on imported cars and car parts.

   The U.S. imported $335 billion in autos and parts in 2017, so those tariffs 
could dwarf the taxes the administration has placed on imported steel, 
aluminum, and goods from China. General Motors and Daimler have both warned 
that tariffs could have major effects on their businesses.

   Lindsey Bell, investment strategist with CFRA, said most consumers haven't 
noticed the effects of the tariffs yet, but that will change if cars are taxed.

   "It will significantly increase the price of a car and the consumer will 
definitely pull back" on spending, she said, adding that foreign automakers 
with factories in the U.S. might move those jobs overseas.

   "There's a lot of jobs that could be lost if these tariffs go through," she 

   The S&P 500 index slid 11.13 points, or 0.4 percent, to 2,804.49. The Dow 
Jones Industrial Average fell 134.79 points, or 0.5 percent, to 25,064.50. The 
Nasdaq composite gave up 29.15 points, or 0.4 percent, to 7,825.30.

   The Russell 2000 index of smaller-company stocks recovered from an early 
slide and rose 9.44 points, or 0.6 percent, to 1,701.31. Smaller retailers did 
especially well. Smaller companies tend to do better than larger ones when 
trade tensions flare up because they do a greater proportion of their sales in 
the U.S.

   More stocks rose than fell on the New York Stock Exchange. 

   General Motors said last month that tariffs on imported cars might cause it 
to cut jobs in the U.S. Its stock slid 1.4 percent to $39.31 and Tesla dipped 
1.1 percent to $320.23. Auto parts retailer BorgWarner lost 2.1 percent to 

   Second-quarter results and forecasts from U.S. companies continued to 
dominate trading. American Express fell 2.7 percent to $100.17 after it set 
aside more money to cover potential bad loans. Bank of New York Mellon lost 5.2 
percent to $52.73.

   EBay slumped 10.1 percent to $34.53 after it reported lower sales than 
analysts had forecast.

   The president's criticism of the Federal Reserve was unusual, and investors 
wondered if it could slow the pace of interest rate increases even though the 
Fed is independent and Trump said he didn't plan to get involved in its 
decision-making. For the day, the dollar fell to 112.46 yen from 112.84 yen. 
The euro fell to $1.1644 from $1.1646.

   Bond yields were already falling before Trump's comments and they fell a bit 
more afterward. The yield on the 10-year Treasury note fell to 2.83 percent 
from 2.87 percent.

   Real estate investment trusts and utilities, which pay big dividends, did 
far better than the rest of the market. Many investors consider those stocks 
alternatives to bonds, so they tend to do well when bond yields fall.

   Cable and internet provider Comcast said it won't make another bid for 
Twenty-First Century Fox's entertainment business and will instead focus on 
trying to buy European pay-TV operator Sky. Fox shareholders are scheduled to 
vote on Disney's $71 billion offer next week.

   Comcast gained 2.6 percent to $34.91 while Fox fell 0.1 percent to $46.65. 
Disney gained 1.3 percent to $112.13, and in London, shares of Sky fell 1.5 

   Aluminum producer Alcoa sank 13.3 percent to $41.56 after it forecast a 
smaller pre-tax profit. It said the tax on imported aluminum is costing it $12 
million to $14 million a month. Century Aluminum skidded 12.1 percent to $13.09.

   Companies that make and distribute drugs fell after the Trump administration 
proposed changes to government rules on drug price rebates. AbbVie fell 4.7 
percent to $89.95 and drugstore and pharmacy benefits manager CVS Health shed 
2.6 percent to $66.14.

   Benchmark U.S. crude rose 1 percent to $69.46 per barrel in New York. Brent 
crude, used to price international oils, fell 0.4 percent to $72.58 per barrel 
in London.

   Wholesale gasoline stayed put at $2.04 a gallon and heating oil was 
unchanged at $2.09 a gallon. Natural gas added 1.8 percent to $2.77 per 1,000 
cubic feet.

   Gold fell 0.3 percent to $1,224 an ounce and silver fell 1.1 percent to 
$15.40 an ounce. Copper dropped 2.3 percent to $2.70 a pound.

   Germany's DAX fell 0.6 percent, as did France's CAC 40. Britain's FTSE 100 
added 0.1 percent.

   Asian markets finished mostly lower with Japan's Nikkei 225 losing 0.1 
percent and South Korea's Kospi shed 0.3 percent. Hong Kong's Hang Seng fell 
0.4 percent.


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