Losses in energy companies, banks weigh on US stock indexes

A broad slide led by energy companies and banks pulled U.S. stocks lower Monday, extending the market’s recent string of losses. Technology companies were doing better than the rest of the market. The losses, which had the benchmark S&P 500 index on track for a four-day losing streak, came as traders geared up for a busy week of corporate earnings reports. Toy makers slumped after Hasbro’s latest quarterly results disappointed investors.

KEEPING SCORE: The S&P 500 index fell 9 points, or 0.4 per cent, to 2,758 as of 1:30 p.m. Eastern Time. The index is on course for its worst month in more than three years. The Dow Jones Industrial Average lost 133 points, or 0.5 per cent, to 25,311. The average was down briefly by more than 200 points. The tech-heavy Nasdaq recovered from an early tumble, gaining 27 points, or 0.4 per cent, to 7,476. The Russell 2000 index of smaller-company stocks picked up 1 point, or 0.1 per cent, to 1,543.

EARNINGS SEASON: Investors have been worried in recent weeks about potential threats to corporate growth, including rising interest rates, trade tensions between the U.S. and China, and some sluggish reports about housing construction and sales.

This week marks the peak of the quarterly earnings calendar as many big-name companies report their latest results, including Caterpillar, Amazon and Google’s parent company, Alphabet.

“The earnings results have the potential to stabilize the market, but what investors are really keen on hearing from companies is what the sustainability of the earnings outlook is, especially in light of the concerns of the potential impact from tariffs,” said Laura Kane, head of Investment Themes Americas at UBS Wealth Management Research.

FINANCIALS SLIDE: Banks and other financial companies took losses. Synchrony Financial fell 4.8 per cent to $29.84.

BROKEN TOYS: Hasbro slid 3.6 per cent to $94.55 after the toy maker reported disappointing third-quarter results, partly due to lost sales following the demise of Toys R Us. Hasbro also said it will cut jobs as it deals with the effects of Toys R Us bankruptcy. Rival Mattel also declined, shedding 0.2 per cent to $14.19.

ON THE HOT SEAT: Lennox International shares slipped 0.3 per cent to $192.54 after the maker of residential heating and cooling products reported quarterly revenue that fell short of analysts’ forecasts. The company also lowered its fiscal year earnings estimate.

COSTLY DELAY: Bristol-Myers Squibb declined 5.6 per cent to $51.24 after the drugmaker said regulators want three more months to review data from a potential lung cancer treatment regimen.

TECH BOUNCE: After a sluggish start, technology stocks rebounded in morning trading. Advanced Micro Devices climbed 3.5 per cent to $24.49.

GOOD CHEMISTRY: Jacobs Engineering Group climbed 6.3 per cent to $76.81 after the company agreed to sell its chemicals and resources business to WorleyParsons of Australia for $3.3 billion in cash and stock.

ENERGY: Benchmark U.S. crude dipped 0.2 per cent to $68.95 per barrel in New York. Brent crude, used to price international oils, was flat at $79.80 per barrel in London.

The slide in oil prices weighed on energy stocks. Halliburton fell 3.3 per cent to $36.32.

BOND YIELDS: Bond prices were little changed. The yield on the 10-year Treasury held at 3.19 per cent.

CURRENCY: The dollar strengthened to 112.72 yen from 112.60 yen on Friday. The euro fell to $1.1473 from $1.1510.

MARKETS OVERSEAS: Germany’s DAX slipped 0.3 per cent and France’s CAC-40 lost 0.6 per cent. Britain’s FTSE 100 fell 0.1 per cent. In Asia, the Hang Seng in Hong Kong surged 2.3 per cent, while Japan’s Nikkei 225 index reversed early losses, gaining 0.4 per cent. The Kospi in South Korea added 0.3 per cent. Australia’s S&P-ASX 200 countered the trend, shedding 0.6 per cent. Shares rose in Taiwan, Singapore and Indonesia, but fell in Thailand.