Banks pull stocks away from records

Associated Press

NEW YORK

A seven-day winning streak for stocks came to a quiet end Tuesday as banks, especially smaller ones, dropped along with bond yields and interest rates. Energy companies also sank.

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. JJ Kinahan, chief market strategist for TD Ameritrade, said he thinks stocks will stay at high levels until more details about the Trump administration’s tax proposals become public.

However Kinahan said he thinks it’s likely Wall Street will be disappointed with any tax-cut package that does pass, since the administration’s proposals will likely be scaled back in Congress.