Stocks tread water as energy companies rise and banks fall

Associated Press

NEW YORK

U.S. stocks hardly moved Tuesday as investors were slow to dip a toe back into the market, although energy companies did climb with the price of oil and natural gas. Banks and retailers took losses.

Stock indexes flickered between tiny gains and losses throughout the day before they mounted a small rally over the last half hour of trading.

Energy companies rose the most, and companies that make drinks, packaged foods and other household items also rose. Retailers and department stores slumped after Urban Outfitters warned of weak first-quarter sales and Ralph Lauren said it will close stores and cut jobs.

That came a day after car makers reported weak sales for March, which raised concerns about sales of other goods.

Eric Wiegand, senior portfolio manager at U.S. Bank’s Private Client Reserve, said consumers are very confident in the economy according to surveys, but considering high levels of employment and hiring, they’re not spending that much.

“We would like to see that confidence reflected in their actual consumption and that’s been somewhat mixed,” he said.

This week investors will pore over reports on the U.S. economy, including the monthly jobs report Friday. Trade agreements will be in focus as President Donald Trump and Chinese President Xi Jinping meet Thursday and Friday.

Banks took losses for the second day in a row after a sharp drop in bond yields Monday. Lower bond yields force interest rates on loans lower, which cuts into banks’ profits. Capital One Financial slid 54 cents to $85.26.

Staples climbed after the Wall Street Journal reported that the office supply company is talking to private equity firms about a potential sale.