US stocks dip as smaller companies continue to tumble
U.S. stocks are mostly lower as smaller companies continue to take sharp losses, although technology stocks are higher
NEW YORK (AP) — U.S. stocks are mostly lower Tuesday as retailers and car companies lose ground but technology companies edge higher. Stitch Fix, an online clothing company, plunged after its revenue and user totals fell short of analyst forecasts, and Pepsi is falling after it said the strong dollar will hurt its results. Mining companies are rising as the prices of gold and other metals increase.
KEEPING SCORE: The S&P 500 index rose less than 1 point to 2,925 as of 11:30 a.m. Eastern time. The Dow Jones Industrial Average added 98 points, or 0.4 percent, to 26,749 as Intel and Boeing climbed. The Nasdaq composite was unchanged at 8,037.
The Russell 2000 index of smaller-company stocks fell 11 points, or 0.7 percent, to 1,661. Shares of smaller companies have been falling recently as investors get less worried about international trade tensions, while rising energy prices could hammer profits for smaller, more U.S.-focused companies. The Russell is on track for its lowest close since July 30.
After the U.S. and Canada said they agreed to a new trade deal, the S&P 500 was on track for a big gain Monday, but the rally faded later in the day and the index finished with a gain of just 0.4 percent. Smaller companies wound up with their worst loss since late June.
RIPPED STITCHING: Stitch Fix's revenue and active client totals fell short of Wall Street's targets, and the stock plummeted 30.7 percent $30.92. Stitch Fix had almost tripled since its IPO in November.
Elsewhere among internet companies, Facebook lost another 1.6 percent to $159.85 and TripAdvisor fell 1.3 percent to $50.40. Among retailers, Under Armour fell 3.4 percent to $20.43 and Nike fell 1.2 percent to $83.48. Gap lost 3.1 percent to $27.82.
Car companies declined as they reported their monthly sales. GM dipped 2 percent to $33.52 and Ford fell 0.8 percent to $9.24, but Toyota added 0.9 percent to $125.90. Auto parts retailer AutoZone fell 1.5 percent to $758.76.
U.S. automakers rose Monday as the trade deal appears to reduce the chances that the industry will be harmed by tariffs on imported cars. The pact offers protection to Canada if the U.S. does impose tariffs.
TROUBLE ON THE TARMAC: Airlines fell after Delta's projections for the third quarter disappointed Wall Street. Delta gave up 3.8 percent to $54.43 while American fell 1.6 percent to $38.96 and United Continental lost 1.3 percent to $86.48.
FLAT SODA: Pepsi fell 1.4 percent to $109.15 after it said the stronger dollar will have a bigger effect on its earnings this year. The company is now forecasting a profit of about $5.65 per share in 2018, down from an earlier estimate of $5.70 a share.
ITALY'S SPENDING: Italy's leaders refused to budge from new spending plans that have been spooking investors, pushing the eurozone's third-largest economy on a collision course with its EU partners. Deputy Prime Minister Luigi Di Maio said Tuesday that the government won't change its plan to increase its deficit to 2.4 percent of GDP. Eurozone say that would skirt the rules of good fiscal housekeeping shared by the 19 nations using the euro currency.
Italy's FTSE MIB was unchanged after a string of losses since last week. However Italian government bond prices continued to fall, a sign investors are concerned about the country's debts. Germany's DAX lost 0.5 percent and the CAC 40 in France dropped 0.7 percent. Britain's FTSE 100 fell 0.2 percent.
Separately, the credit ratings agency Moody's warned that Europe remains highly vulnerable to another economic downturn despite all its fire-fighting efforts over the past few years.
COMMODITIES: Oil prices remained near four-year highs. Benchmark U.S. crude rose 0.2 percent to $75.44 in New York. Brent crude, used to price international oils, slipped 0.1 percent to $84.87 a barrel in London.
Gold jumped 1.6 percent to $1,211.20 an ounce and silver rose 2.7 percent to $14.90 an ounce. Copper gained 1.2 percent to $2.82 a pound.
CURRENCIES: The dollar fell to 113.56 yen from 113.99 yen. The euro fell to $1.1564 from $1.1575.
BONDS: Bond prices edged higher. The yield on the 10-year Treasury note fell to 3.05 percent from 3.08 percent.
ASIA: Hong Kong's Hang Seng tumbled 2.4 percent after it reopened following a national holiday. South Korea's Kospi lost 1.3 percent and the benchmark Nikkei 225 in Tokyo added 0.1 percent.
____
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay