Asian shares are mixed after China-US talks end without a trade deal
The 10-year Treasury, which also takes into account longer-term expectations for the economy and inflation, rose to 4.36% from 4.34%.
A report earlier in the morning suggested the U.S. economy’s growth was much stronger during the spring than economists expected. But underlying trends beneath the surface may be more discouraging.
“Cutting through the noise of the swings in imports, the economy is still chugging along, but it is showing signs of sputtering,” said Brian Jacobsen, chief economist at Annex Wealth Management.
On Wall Street, Humana rose 12.4% after the insurer and health care giant reported stronger results for the spring than expected. It also raised its forecasts for profit and revenue over the full year.
Video-game maker Electronic Arts climbed 5.7% after likewise topping Wall Street’s expectations.
Companies are under pressure to deliver solid profit growth. They need to in order to justify the big jumps in their stock prices during recent months, which has caused some critics to say the broad U.S. stock market looks too expensive.
Trane Technologies, whose stock came into the day with a 27.5% gain for the year so far, tumbled even though it reported a stronger-than-expected profit for the latest quarter. The heating, ventilation and air conditioning company’s revenue came up short of analysts’ estimates, as did its forecast for profit in the current quarter. It dropped 8.4%.
Freeport-McMoRan, a copper producer with mines around the world, tumbled 9.5% after Trump signed an executive order to tax imports of copper at 50%.
Starbucks slipped 0.2% after reporting a weaker profit than analysts expected as it tries to turn around its operations. The company is hoping to boost its performance through improved store operations and new products, including a cold foam protein drink.
All told, the S&P 500 slipped 7.96 points to 6,362.90. The Dow Jones Industrial Average dropped 171.71 to 44,461.28, and the Nasdaq composite rose 31.38 to 21,129.67.
In stock markets abroad, indexes were mixed across Europe and Asia. Hong Kong’s Hang Seng fell 1.4%, and South Korea’s Kospi rose 0.7% for two of the bigger moves.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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