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U.S. stocks slip as week ends

Trader Peter Tuchman wears his

Trader Peter Tuchman wears his "Dow Almost 20,000" cap as he works on the floor of the New York Stock Exchange, Thursday, Dec. 15, 2016. Photo Credit: AP / Richard Drew

Stocks ended lower Friday, a possible reaction to the Federal Reserve raising a key interest rate as expected. But it also increased its forecast for how many rate hikes it expected to make in 2017, which wasn’t widely anticipated.

ON WALL STREET: At the close, the Standard & Poor’s 500 index was down nearly 4 points, about 0.2 percent, at 2,258.1. The Dow Jones industrial average lost 8.8 points, about 0.04 percent, to 19,843.4. The Nasdaq composite slipped 19.7 points, about 0.4 percent, to 5,437.2.

OIL PRICES: As markets closed, benchmark U.S. crude rose $1.13 to $53.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 14 cents to settle at $50.90 a barrel Thursday. In London on the Intercontinental Exchange Europe, Brent crude, the international standard, was up $1.32 at $55.34 a barrel.

THE DOLLAR AND BONDS: The dollar rose against other currencies Wednesday and bond yields increased sharply. The yield on the 10-year Treasury note reached its highest level in more than two years. That rate is used to set interest rates on mortgages and other kinds of loans.

The biggest losers on the stock market were high-dividend companies like utilities and real estate companies that income investors tend to favor when bond yields are low. With bond yields on the rise, those stocks have less appeal.

Banks, which stand to benefit from higher interest rates because they can charge more to lend money, held up better than other parts of the market.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.58 percent, a big move up from 2.47 percent the day before.


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