NEW YORK (AP) — U.S. stocks fell in early afternoon trading Wednesday as an early rally faded. The declines were led by energy companies as the price of oil dropped.
The stock market started the day with early gains on optimism that policymakers in Asia will do more to help boost growth in the region. Japan’s stock market logged its biggest gain in almost seven years after comments from the country’s prime minister raised expectations of more measures to shore up economic growth. China’s No. 2 leader said that the nation had no plans to devalue its currency further and suggested that growth remained on track.
KEEPING SCORE: The Dow Jones industrial average fell 05 points, or 0.6 percent, to 16,387 as of 2 p.m. Wednesday. The Standard & Poor’s 500 index dropped 11 points, or 0.6 percent, to 1,958. The Nasdaq composite fell 14 points, or 0.3 percent, to 4,797.
JAPAN SOARS: The Nikkei 225 soared after comments from Prime Minister Shinzo Abe that raised expectations of more measures to shore up economic growth under his “Abenomics” stimulus program. The Nikkei rose 7.7 percent, its biggest one-day rise since October 2008.
CHINA’S GROWTH: China’s No. 2 leader tried to ease concerns about its economic slowdown, saying the nation’s growth is in the “proper range” and Beijing has no plans to allow its currency to decline further following a surprise devaluation on Aug. 11. Premier Li Keqiang also said Beijing will stick to plans for market-opening reforms despite recent “fluctuations” in economic performance.
BACK TO SCHOOL: Barnes & Noble sank 18 percent after the troubled bookseller reported a wider first-quarter loss as sales of its Nook e-reader and digital books fell sharply. Its college bookstore business, which was the only unit to post an increase in sales in the quarter, was spun off last month. The stock fell $2.89 to $13.41.
JOB OPENINGS: In a classic good-news-is-bad-news moment for the markets, an early rally fizzled at mid-morning after the U.S. government reported that the number of available jobs jumped sharply in July to the highest level in 15 years. That could affect deliberations at a Federal Reserve meeting next week.
THE QUOTE: The Fed has held its benchmark interest rates close to zero for almost eight years. The backdrop of low interest rates has been good for the stock market, underpinning a 6 ½ year-long bull market. That dynamic may now change if signs of an improving economy push policymakers toward lifting rates for the first time in close to a decade.
“More job openings suggest the labor market is getting stronger and that the Fed shouldn’t keep interest rates near zero,” said Kate Warne, investment strategist at Edward Jones.
BIG BOUNCE: U.S. stocks were moving higher a day after logging their second-biggest gain of the year. The advances helped push the S&P 500 into positive territory for the month. Stocks had slumped last week on concern about the outlook for growth in China, the world’s second-biggest economy.
EUROPE’S DAY: France’s CAC 40 advanced 1.4 percent. Germany’s DAX rose 0.3 percent. Britain’s FTSE 100 rose 1.3 percent.
GLOBAL REACH: Netflix gained $5.80, or 6 percent, to $101.79 after the company said it would bring its service to four more Asian countries next year. The company’s stock was rebounding from a seven-day losing streak.
BONDS AND CURRENCIES: U.S. government bond prices were little changed. The yield on the 10-year Treasury note held steady at 2.19 percent. The dollar rose 0.7 percent against the euro to $1.1150 and gained against the yen, climbing 1.1 percent to 121.13.
ENERGY: U.S. benchmark oil fell $1.47 to $44.47 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.56 to $47.96 barrel in London.
METALS: The price of gold fell $19 to $1,102 an ounce. Silver fell 18 cents to $14.57 an ounce and copper edged up less than a penny to $2.44 per pound.
STEVE ROTHWELL, AP Business Writers BERNARD CONDON, AP Business Writers
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