Technology companies inch higher, but U.S. indexes are mixed

Marley Jay, The Associated Press</span>
Published Wednesday, August 29, 2018 7:37AM EDT
Last Updated Wednesday, August 29, 2018 10:40AM EDT

NEW YORK -- U.S. stock indexes are slightly higher Wednesday morning as technology companies continue to climb. Retailers are falling, with Dick's Sporting Goods taking sharp losses after it reported slower sales than analysts expected. The S&P 500 index is on track for its fourth gain in a row.

KEEPING SCORE: The S&P 500 index gained 3 points, or 0.1 per cent, to 2,901 as of 10:15 a.m. Eastern time. The Dow Jones Industrial Average lost 12 points, or 0.1 per cent, to 26,051. The Nasdaq composite added 27 points, or 0.4 per cent, to 8,057.

While the S&P 500 and Nasdaq are at record highs and on pace for a four-day winning streak, smaller companies didn't do as well. The Russell 2000 index of smaller-company stocks fell 3 points, or 0.2 per cent, to 1,725.

Smaller companies tend to do better than larger ones when investors are worried about trade tensions, and vice versa. Larger stocks rallied earlier this week after the White House said it had reached a preliminary deal with Mexico to replace the North American Free Trade Agreement.

TIP-TOP TECH: Technology companies continued to lead the market higher. Hewlett Packard Enterprise rose 2.8 per cent to $17.22 after it announced strong third quarter results and raised its forecasts for the year.

Elsewhere, Google's parent company Alphabet gained 1 per cent to $1,258.24 and Microsoft picked up 0.6 per cent to $110.95. The S&P 500 technology index has jumped 33 per cent over the last year while the S&P 500 has risen a still-strong 19 per cent.

Roku slumped 4.3 per cent to $60.29 following a report that Amazon may challenge it with an ad-supported TV service. The Information said Amazon will offer the service through its Fire TV devices, which are owned by about 48 million people. Amazon jumped 1.4 per cent to $1,960.71.

CHINESE TAKEOUT: Yum China climbed 4.4 per cent to $38.80 after the Wall Street Journal reported that a group of investors offered to buy it for $46 per share, or $17.6 billion. The Journal said the offer was made in recent months and that Yum China rejected it.

CRYING FOUL: Dick's Sporting Goods sank 8.5 per cent to $33.29 after its sales fell short of expectations. The company said sales of Under Armour products dropped significantly because of that company's decision to expand distribution of its apparel to other stores.

Under Armour dropped 6.6 per cent to $19.55. Retailers struggled in general, Chico's FAS fell 5.4 per cent after its quarterly report. Elsewhere, Tiffany sank 3.8 per cent to $126.09 and Macy's gave up 3.3 per cent to $35.16. Gap slipped 2.7 per cent to $29.87.

ENERGY: Benchmark U.S. crude rose 0.7 per cent to $69.03 a barrel in New York while Brent crude, used to price international oils, gained 0.7 per cent to $76.86 a barrel in London.

BONDS: Bond prices ticked lower. The yield on the 10-year Treasury note rose to 2.89 per cent from 2.88 per cent.

CURRENCY: The dollar rose to 111.48 yen from 111.21 yen. The euro dipped to $1.1691 from $1.1696.

OVERSEAS: Germany's DAX dipped 0.1 per cent and the British FTS. slid 0.3 per cent. The CAC 40 of France was little changed.

Tokyo's Nikkei 225 rose 0.1 per cent while the Hang Seng in Hong Kong added 0.2 per cent and Seoul's Kospi advanced 0.3 per cent.

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