US stocks start lower as consumer companies slide


NEW YORK (AP) — U.S. stocks are slipping Tuesday morning as investors worry about the health of Europe’s banks. Utility and consumer products companies are taking some of the biggest losses. Bond prices are falling and sending yields higher, and the price of oil is rebounding after a sharp fall.

KEEPING SCORE: The Dow Jones industrial average fell 75 points, or 0.4 percent, to 18,329 as of 10:14 a.m. Eastern time. The Standard & Poor’s 500 index lost 12 points, or 0.5 percent, to 2,159. The Nasdaq composite slid 31 points, or 0.6 percent, to 5,153.

CRUISING FOR A BRUISING: Cruise line operator Royal Caribbean cut its forecasts for the year as the strong dollar continues to affect its results. Its stock lost $4.27, or 5.9 percent, to $67.59.

CONSUMER WOES: Auto companies reported their U.S. sales in July. General Motors said its sales fell 2 percent and Ford said sales fell 3 percent. Experts expect a drop in sales because of hot weather, and investors are worried that after setting records, U.S. auto sales may have peaked. GM stock shed $1.10, or 3.5 percent, to $30.20 and Ford lost 39 cents, or 3.1 percent, to $12.09.

CLEAN BILL OF HEALTH: Drugstore chain and pharmacy benefits manager CVS Health raised its 2016 forecasts as specialty drug prices kept rising and deals for Omnicare and Target’s pharmacy and clinic unit boosted its results. Its stock rose $3.53, or 3.8 percent, to $97.02.

PUT DOWN THE REMOTE: Discovery Communications, the company behind TLC, Animal Planet and other channels, reported a profit that was larger than analysts expected as its U.S. business got stronger. Its stock gained $1.66, or 6.7 percent, to $26.43.

CRANE PAIN: Heavy machinery maker Terex reported revenue that fell far short of estimates because of weak results for its aerial work platform and crane business. Its stock gave up 24 cents, or 1 percent, to $23.51.

OIL: Benchmark U.S. crude gained 76 cents, or 1.9 percent, to $40.82 a barrel in New York. Brent crude, which is used to price international oils, rose 90 cents, or 2.1 percent, to $43.04 a barrel London.

METALS: The price of gold rose $12 to $1,371.60 an ounce, and silver jumped 27 cents, or 1.3 percent, to $20.78 an ounce. Copper climbed 4 cents to $2.24 a pound.

EUROPEAN BANK WORRIES: On Tuesday, bank stocks across Europe — even those that were effectively given a clean bill of health by the European Banking Authority in last Friday’s stress tests — fell sharply for the second day in a row. Britain’s Barclays PLC was down 3 percent while Germany’s Commerzbank slid 6.4 percent and Italy’s UniCredit fell another 5.1 percent.

OVERSEAS: Germany’s DAX lost 1.3 percent and France’s CAC 40 was 1.4 percent lower. Britain’s FTSE 100 fell 0.3 percent. Japan’s Nikkei 225 lost 1.5 percent. While the Japanese government approved a new economic stimulus package worth about $275 billion, investors were skeptical the measure will work. South Korea’s Kospi lost 0.5 percent to 2,019.70. China’s Shanghai Composite Index edged up 0.6 percent.

BONDS, CURRENCIES: Bond prices continued to fall and the yield on the 10-year Treasury note rose to 1.57 percent from 1.52 percent. The dollar fell to 101.21 yen from 102.35 yen and the euro rose to $1.1214 from $1.1169.

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP . His work can be found at http://bigstory.ap.org/journalist/marley-jay

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