Banks pull stocks away from records as seven-day streak ends
A seven-day winning streak for stocks came to a quiet end on Tuesday as banks, especially smaller ones, dropped along with bond yields and interest rates.
Investors snapped up government bonds and high-yield stocks including phone companies and utilities.
As bond prices rose, yields and interest rates fell. That reduced the profits financial institutions can make from mortgages and other types of loans.
Energy companies fell to their lowest prices in a year. Technology companies continued to soar while airlines slumped as investors worried that the government could expand a ban on laptops in passenger cabins during international flights, which could affect business travel.
Still, stocks remain close to their record highs.
The Standard & Poor's 500 index lost 2.91 points, or 0.%, to 2,412.91. The Dow Jones industrial average fell 50.81 points, or 0.2%, to 21,029.47.
The Nasdaq composite dipped 7 points, or 0.1%, to 6,203.19. The Russell 2000 index of smaller-company stocks tumbled 11.05 points, or 0.8%, to 1,371.19.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.21% from 2.25% late Friday.
With interest rates falling, JPMorgan Chase declined 1.46 dollars, or 1.7%, to 83.90 dollars. Smaller banks fell harder, as Hope Bancorp dropped 67 cents, or 3.7%, to 17.48 dollars and First Financial Bancorp sank 75 cents, or 2.9% to 25.05 dollars.
Oil prices recovered from an early stumble and finished only slightly lower, but energy companies continued to fall.
Hess dropped 1.47 dollars, or 3.1%, to 46.67 dollars and Schlumberger shed 85 cents, or 1.2%, to 68.74 dollars.
The S&P 500 index of energy companies reached its lowest level in a year.
The dollar declined to 110.78 yen from 111.19 yen. The euro rose to 1.1188 dollars from 1.1176 dollars.
The FTSE 100 index in Britain fell 0.3% and the French CAC 40 sank 0.6%. Germany's DAX dipped 0.2%. In Japan, the Nikkei 225 finished nearly flat and South Korea's Kospi dropped 0.4%. Markets in Hong Kong were closed for a holiday.