Stocks wobble in early trading as investors turn cautious

Stocks wobble in early trading as investors turn cautious

U.S. stocks wobbled between small gains and losses in early trading Thursday as investors became more cautious following a record-setting day for major indexes

By

DAMIAN J. TROISE AP Business Writer

February 20, 2020, 3:18 PM

2 min read

NEW YORK -- U.S. stocks edged slightly lower in early trading Thursday as investorsbecame more cautious following a record-setting day for major indexes.

The virus outbreak originating in China remains a lingering concern as more companiessay they'll be affected. The world’s biggest shipper, A.P. Moller Maersk, expects a profit hit in 2020. Air France also expects earnings to suffer and Australia’s Qantas is slashing flights to Asia.

Technology and health care companies fell. Nvidia slipped 1.7% and UnitedHealth Group fell 1.6%.

Bond prices rose, sending yields lower. The yield on the 10-year Treasury slipped to 1.54% from 1.57%.

Companies that rely on consumer spending held up better than most. Industrial companies also fared well. E-Trade soared after agreeing to be acquired by Morgan Stanley.

KEEPING SCORE: The S&P 500 index rose 0.1% as of 10:07 a.m. Eastern time. The Dow Jones Industrial Average and the Nasdaqwere little changed. The Russell 2000 index of smaller company stocks rose 0.2%.

OVERSEAS: Markets in Asia were mixed. The Shanghai benchmarkjumped1.8% after China’s central bank cut interest rates to help ease credit for companies hurt by the virus outbreak. European marketsmostly fell.

RICH CRUST: Domino's Pizza jumped 23.8% after the company delivered better-than-expected fourth-quarter profit and surprisingly good sales. The company handily beat a key sales measure as it faces increasing competition from food delivery companies like DoorDash. .

BIG DEAL: E-Trade surged 24% after Morgan Stanley said it will buy the online brokerage firm for $13 billion, one of the biggest deals on Wall Street since the financial crisis. Morgan Stanley fell 4.1%. The deal comes less than a year after a vicious fight for customers resulted in discount brokers like E-Trade slashing or eliminating fees. Rival Charles Schwab is in the process of buying TD Ameritrade.

EARNINGS: Investors continued digesting a steady flow of corporate earnings. Zillow Group jumped 19% and Avis Budget Group also soared 19%after reportingsolid financial results. Online postage provider Stamps.com surged 47% after blowing away analysts’ forecasts. ViacomCBS plunged 17.9% and Boston Beer slid 5.9% after reporting disappointing results.

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