BUSINESS US stocks move lower in early trading after a 3-day rally

BUSINESS

US stocks move lower in early trading after a 3-day rally

AP

23:51, April 02, 2019

US stocks moved broadly lower on Wall Street in early trading on Tuesday, reversing course from a three-day rally.

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Dow CFO & President Howard Ungerleider, left, looks on as CEO Jim Fitterling rings a ceremonial marking the start of Dow trading, as it separates from DowDuPont. (Photos: AP)

Health care and consumer products companies led the market lower. Walgreens Boots Alliance plunged after it slashed its forecast following a weak quarter. Competitor CVS followed it lower.

Technology and financial stocks bucked the downward trend. Apple and Cisco both made gains. Ameriprise Financial rose 3.3%.

Dow Inc., which makes plastics and other products for both consumer and industrial uses, rose 5.1% in its first day of trading after being spun off from chemical maker DowDuPont.

KEEPING SCORE: The Dow Jones Industrial Average fell 106 points, or 0.4% as of 11:45 a.m. The S&P 500 index fell 0.2% and the Nasdaq composite index was little changed.

TAKE AN ASPIRIN: Walgreens had a headache of a quarter as insurers trimmed prescription costs, generic drug prices dropped and brand-name medication prices stalled.

Al those factors resulted in a 14% drop in second-quarter profit, which the company's CEO described as the most difficult quarter the nation's largest drugstore has faced since forming a few years ago.

Walgreens also slashed its forecast for 2019.

The stock fell 12% and helped push down key competitor CVS Health by 4%.

LIFTOFF: Delta rose 7% after raising its profit forecast for the current quarter, citing strong passenger demand. The company also said fuel costs were less than expected and it extended a credit card partnership with American Express.

Other airlines also rose. United Continental rose 4% and American Airlines climbed 3%, and JetBlue rose 2%.

LOADED POTATO: Lamb Weston Holdings rose 3% after the potato products company beat quarterly profit and revenue forecasts. It also raised its full-year sales forecast. The company specializes in frozen potato products, including french fries, mashed potatoes and hash browns.

ANALYST'S TAKE: Investors are still not sure which direction to move as they weigh uncertainty over international trade issues and warnings over a weak first quarter for companies.

The unresolved trade dispute between the US and China is still a key issue, said J.J. Kinahan, chief market strategist at TD Ameritrade.

"Nobody wants to buy with both hands, just in case," he said. "But, people won't aggressively sell everything as well, just in case."

Cover image: Trader Michael Urkonis works on the floor of the New York Stock Exchange, Tuesday, April 2, 2019. 

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