Business

U.S. stocks weighed down by weakness in mining and energy companies

FILE - This July 9, 2015, file photo, shows a Wall Street sign near the New York Stock Exchange. Global stock markets drifted lower Thursday, Nov. 12, 2015, as investors looked past some fairly dovish remarks from the head of the European Central Bank and awaited a slew of comments from Federal Reserve officials, notably those of Fed Chair Janet Yellen. (AP Photo/Seth Wenig, File)

FILE – This July 9, 2015, file photo, shows a Wall Street sign near the New York Stock Exchange. Global stock markets drifted lower Thursday, Nov. 12, 2015, as investors looked past some fairly dovish remarks from the head of the European Central Bank and awaited a slew of comments from Federal Reserve officials, notably those of Fed Chair Janet Yellen. (AP Photo/Seth Wenig, File)

NEW YORK (AP) — U.S. stocks are skidding Thursday, weighed down by weakness in mining and energy companies as commodities prices fall. Stocks are heading for their sixth drop in seven days.

KEEPING SCORE: The Dow Jones industrial average sank 159 points, or 1 percent, to 17,532 as of 1:25 p.m. The Standard & Poor’s 500 lost 16 points, or 0.8 percent, to 2,059. The Nasdaq composite index fell 22 points, or 0.4 percent, to 5,045.

STRUGGLING STOCKS: Mike McGlone, head of U.S. research for ETF Securities, said investors are coming to grips with the fact that the Federal Reserve is about to start raising interest rates, ending an era of stimulus policies that have boosted stocks. At the same time, stocks could get hurt by warning signs about the U.S. economy, like weak jobs data or disappointing earnings.

“Now we have almost a lose-lose situation” for stocks, McGlone said.

THE BIG PICTURE: October was the best month for the market in four years. The Dow remains down slightly for the year, however, and after a November slump, the S&P 500 is basically unchanged for 2015. The tech-heavy Nasdaq has done better, and is up 6 percent for the year.

METALS SLIDE: Prices for copper and other commodities are slumping as investors anticipate that the dollar will get even stronger. The price of silver has fallen for nine days in a row and is down 10 percent since late October. The price of copper fell 2 percent to $2.17 a pound. It’s down 22 percent this year, hitting six-year lows.

Copper producer Freeport-McMoRan dropped 42 cents, or 4.5 percent, to $8.89.

THE QUOTE: The central banks of Europe and Japan are both hinting that they will step up stimulus measures. That could make the dollar even stronger compared with the euro and yen. When the dollar appreciates it tends to send prices for oil, copper and other commodities, which are priced in dollars, lower. That’s because buyers using other currencies such as the yen and the euro often aren’t willing to pay higher prices in their own currency just because the dollar has appreciated.

“Since November hit, the U.S. dollar has gone straight up and these commodities are getting smoked,” Ryan Detrick, a markets strategist at Kimble Charting Solutions, said.

OIL FALLING: The price of oil slid to its lowest price since late August after the U.S. government said crude stockpiles grew by 4.2 million barrels last week. A private report released Wednesday had showed an even larger increase. U.S. crude has fallen five of the last six trading days.

U.S. benchmark crude fell $1.17, or 2.7 percent, to $41.76 a barrel in New York. Brent crude, which is used to price international oils, $1.20, or 2.6 percent, to $45.41 a barrel in London.

KOHL’S REBOUNDS: Retailer Kohl’s climbed $2.40, or 5.6 percent, to $45.56 after the company said strong sales in the back-to-school season and in late October boosted its results in the third quarter.

Kohl’s and other retailers tumbled Wednesday after a disappointing report from Macy’s. Kohl’s more than made up its losses, while competitors made partial recoveries.

LISTED: Angie’s List, which lets users research, shop for and rate home services like plumbers and home cleaners, agreed to be bought by IAC/InteractiveCorp for $512 million. IAC/InteractiveCorp owns websites including About.com and HomeAdvisor.com. Its offer values Angie’s List at $8.75 a share.

Angie’s List stock rose 87 cents, or 11 percent, to $8.79. The shares have doubled in value in recent months, but are down sharply from their level of $28 in 2013.

TAILS AREN’T WAGGING: Freshpet, which sells refrigerated fresh pet food, tumbled after reporting its third-quarter results. The company said growth in fridges was lower than it expected and manufacturing problems hurt its profits. Freshpet plunged $2.07, or 24.8 percent, to $6.30.

RETREAT: Advance Auto Parts said the strong dollar and integration costs hurt its profit. The auto parts retailer lowered its annual outlook and said CEO Darren Jackson will retire in January. The stock lost $29.22, or 15 percent, to $165.45.

BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.31 percent. The euro dipped to $1.0769 from $1.0776. The yen slipped to $122.83 from 122.89.

____

Follow Marley Jay at twitter.com/marleyjayAP

His work can be found at http://bigstory.ap.org/journalist/marley-jay

 

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.