Business / International News / Lifestyle

US stocks edge lower at midday, extending a recent decline

Traders work on the floor of the New York Stock Exchange, Monday, June 8, 2015. U.S. stocks are mostly lower in early trading, led by declines in the energy sectors as the price of oil fell again. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Monday, June 8, 2015. U.S. stocks are mostly lower in early trading, led by declines in the energy sectors as the price of oil fell again. (AP Photo/Richard Drew)

NEW YORK (AP) — U.S. stocks are slipping in midday trading, extending a recent slump.

Airlines were among the biggest decliners Monday as investors worried that growing capacity could hurt their profits. American Airlines and United Continental each fell 5 percent.

Stocks have been falling over the last two weeks as traders try to anticipate when the Federal Reserve will begin raising interest rates from their historic lows.

European stocks were lower following several days of tense rhetoric between Greece and its creditors.

KEEPING SCORE: The Standard & Poor’s 500 index dropped seven points, or 0.3 percent, to 2,085 as of 12:28 p.m. Eastern. The Dow Jones industrial average fell 43 points, or 0.2 percent, to 17,805. The Nasdaq composite declined 29 points, or 0.6 percent, to 5,039.

AIRLINES SAG: Airline stocks were among the biggest decliners as industry executives met in Miami for the International Air Transportation’s annual general meeting in Miami.

American Airlines CEO Doug Parker told Reuters reporters at the meeting that he was worried that growth in airline capacity could depress profits. The company’s stock was among the leading decliners in the S&P 500, dropping $1.87, or 4.6 percent, to $39.80. Delta Air Lines and Southwest Airlines also fell.

RATE RISE LOOMING? The six-year bull market in stocks has paused for the past two weeks as investors try to assess if Fed policymakers will raise their benchmark interest rate for the first time since the recession. A stronger-than-forecast jobs report on Friday suggested that the economy is recovering from its winter slump.

THE QUOTE: Investors will be closely following this week’s economic data to see if it shows the same strength as Friday’s jobs report, said Quincy Krosby, a market strategist at Prudential Financial.

A private survey on small business optimism and a government report on job openings, both scheduled to be released Tuesday, will give investors more clues about how well the economy is doing.

“The market is suggesting that if the data continue at this pace, the Fed will be more inclined to raise rates in September, rather than waiting,” said Krosby.

GREEK FEARS: Talks between Greece and its creditors have been deadlocked since late last week, when Greek Prime Minister Alexis Tsipras rejected as unacceptable a proposal made by the three institutions overseeing the country’s bailout: the European Central Bank, the International Monetary Fund and the European Commission.

A resolution to the talks is needed by June 30, when Greece’s emergency financing program ends. Without fresh funds, Greece is unlikely to be able to repay its debts and could end up crashing out of the euro. Jitters over Greece’s financial future have been a cloud over markets in recent days, notably in Germany, where the DAX index is down more than 10 percent from its April peak.

EUROPE’S DAY: In Europe, Germany’s DAX was down 1.2 percent while the CAC-40 in France declined 1.3 percent. The FTSE 100 index of leading British shares was flat.

CHANGE AT THE TOP: Deutsche Bank bucked the trend, surging 6 percent after the company said its co-CEOs, Anshu Jain and Juergen Fitschen, will step down early. Jain will depart at the end of this month while Fitschen will follow next May. They will be succeeded by British banker John Cryan. Cryan is currently a member of the company’s supervisory board. Deutsche Bank’s U.S.-listed shares gained $1.77 to $32.39.

ENERGY: Benchmark U.S. crude oil dropped $1 to $58.09 a barrel on the New York Mercantile Exchange following OPEC’s decision to keep its oil output target on hold. Brent crude, a benchmark for international oil used by many U.S. refineries, fell 70 cents to $62.61 a barrel in London.

BONDS AND CURRENCIES: In U.S. government bond trading, prices rose. The yield on the 10-year note fell to 2.38 percent. The yield had risen to its highest level of the year on Friday. The dollar slipped to 125.14 yen from 125.61 yen on Friday. The euro strengthened to $1.1204 from $1.1113.

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