US stocks slightly down in early trading; oil heads lower

Associated Press

Energy companies led U.S. stocks mostly lower in early trading today as the price of crude oil fell and several retailers reported disappointing quarterly results.

Utilities and consumer product stocks bucked the broader downward trend. The market was coming off a post-election rally that pushed the Dow Jones industrial average to a new high a day earlier.

The Dow Jones industrial average slid 19 points, or 0.1 percent, to 18,786 as of 10:20 a.m. Eastern time. The Standard & Poor's 500 index fell 4 points, or 0.2 percent, to 2,163. The Nasdaq composite index gained 6 points, or 0.1 percent, to 5,214. The S&P 500 is headed for its biggest weekly gain in two years.

Investors are gauging the possible implications of policy changes that may come about when the Trump administration takes office in January, including tax cuts, infrastructure spending and deregulation.

Traders have been pulling out of bonds, expecting Trump's policies might spur inflation, leading to higher interest rates, both of which are bad for bonds. Higher yields on bonds also would draw investors away from high-dividend stocks such as utilities, phone companies and real estate companies.

J.C. Penney slid 4.4 percent after the struggling department store chain reported third-quarter revenue that fell short of financial analysts' expectations. The stock lost 35 cents to $8.46.

Michael Kors fell 8.4 percent after investors pored over the luxury retailer's latest quarterly report card. Its shares lost $4.31 to $47.45.