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Banks, energy companies pull stocks lower

Traders work on the floor of the New

Traders work on the floor of the New York Stock Exchange, Tuesday, May 30, 2017. Credit: Bloomberg News / Michael Nagle

Major U.S. stock indexes closed lower as a dip in bond yields hurt banks and energy companies fell with the price of oil.

U.S. crude futures fell 0.3 percent to $49.66 a barrel in New York Tuesday. Devon Energy lost 3.7 percent and Kinder Morgan fell 4.3 percent.

Technology companies rose as traders returned following the Memorial Day holiday.

Payment processor CardConnect jumped 10.6 percent after it agreed to be bought by First Data for about $468 million.

The Dow Jones industrial average of 30 major stocks slipped 51 points, or 0.2 percent, to 21,030.

The S&P 500 inched 3 points lower, or 0.1 percent, to 2,413.

The Nasdaq composite fell 7 points, or 0.1 percent, to 6,203.

ENERGY: Benchmark U.S. crude lost 50 cents, or 1 percent, to $49.30 a barrel in New York. Brent crude, the international standard, fell 73 cents, or 1.4 percent, to $51.91 a barrel in London. Hess dropped $1.64, or 3.4 percent, to $46.50 and Exxon Mobil shed 38 cents to $81.17. The S&P 500 index of energy companies reached its lowest level in a year.

BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.22 percent from 2.25 percent late Friday. When bond yields decrease, interest rates fall along with them, and that reduces the profits banks can make from mortgages and other loans. PNC Financial Services gave up $2.48, or 2 percent, to $118.84 and JPMorgan Chase declined 96 cents, or 1.1 percent, to $84.40.

TURBULENCE: International airlines slumped as the government considered expanding a ban on laptops from the passenger cabins of flights to the United States. In March the Trump administration said passengers flying from 10 cities, mostly in the Middle East, could not bring laptops, tablets and some other devices in the cabins and had to check them instead. On Sunday, Homeland Security Secretary John Kelly said that ban might be expanded to all international flights to and from the U.S.

It’s not clear how that might affect business travel, and Delta lost 99 cents, or 2 percent, to $49.81 and United Continental slid $1.36, or 1.7 percent, to $79.89.

DEALING: E-commerce and payment services company First Data said it will buy payment processing company CardConnect for $15 a share in cash, or about $468 million. CardConnect’s stock climbed $1.40, or 10.3 percent, to $15.05 and First Data picked up 11 cents to $16.75.

Offshore drilling contractor Atwood Oceanics jumped after it agreed to be bought by Ensco PLC for $10.72 a share in stock, or $863 million. Atwood rose $2.05, or 25.4 percent, to $10.13 while U.K.-based Ensco lost 27 cents, or 4 percent, to $6.44.

Cloud-based incentives company Xactly agreed to be taken private by Vista Equity Partners in a deal that values it at $15.65 a share, or $499 million. Its stock added $2.25, or 16.8 percent, to $15.65.

AMAZON MILESTONE: Online retail giant traded above $1,000 a share for the first time, peaking at $1,001.20 shortly after the market opened. Later it traded at $999.47, up $3.69 from Frida’s close. The only other S&P 500 company valued at more than $1,000 a share is travel booking site Priceline, which traded at about $1,853 on Tuesday.

TECH AGAIN ON TOP: Technology companies continued to lead the way. Security software maker Symantec advanced 42 cents, or 1.4 percent, to $30.03. Chipmaker Nvidia gained $2.93, or 2.1 percent, to $144.77 and Micron Technology rose $1.01, or 3.4 percent, to $30.77.

CONSUMERS: The Commerce Department said consumer spending grew 0.4 percent in April, another hint that the economy is rebounding after a sluggish start to this year. Consumer spending is responsible for 70 percent of economic activity. An important measurement of inflation rose in April and it’s up 1.7 percent in the last year. That’s still below the Federal Reserve’s target of 2 percent.

The Conference Board, a business research group, said consumers were slightly less confident in May for the second month in a row. However they remain optimistic by historical standards.

CURRENCIES: The dollar declined to 110.75 yen from 111.19 yen. The euro rose to $1.1178 from $1.1176.

OVERSEAS: The FTSE 100 index in Britain fell 0.3 percent and the French CAC 40 sank 0.6 percent. Germany’s DAX dipped 0.2 percent. In Japan, the Nikkei 225 finished nearly flat and South Korea’s Kospi dropped 0.4 percent. Markets in Hong Kong were closed for a holiday.

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