43° Good Afternoon
43° Good Afternoon

Losses for banks and smaller companies take stocks lower

Trader Gregory Rowe works on the floor of

Trader Gregory Rowe works on the floor of the NYSE on Nov. 1, 2017.  Credit: AP / Richard Drew

Stocks slipped Tuesday as smaller companies and banks took their worst losses in a few months.

With stock indexes near record highs, investors moved some money into big-dividend stocks like real estate companies.

Banks and other financial companies have been climbing over the last two months, but Tuesday they skidded as interest rates moved lower.

Small, domestically-focused companies had their worst day since mid-August as House Republicans began making changes to their tax bill. Their Senate counterparts are expected to introduce their own bill soon. Smaller companies tend to pay higher tax rates than their bigger peers because they make more of their money in the U.S. and don’t have as many ways to reduce their taxes.

“Financials would be a primary beneficiary of a 20 percent corporate tax rate because they’re domestically based and they pay domestic taxes,” said Quincy Krosby, chief market strategist at Prudential Financial.

The Standard & Poor’s 500 index dipped 0.49 points to 2,590.64. The Dow Jones industrial average added 8.81 points to 23,557.23, another record high. The Nasdaq composite fell 18.65 points, or 0.3 percent, to 6,767.78.

Weight Watchers surged after it raised its earnings forecasts for the year. The weight loss company has more than quadrupled in value this year.

More news