US stocks slip as drugmakers pull health care companies down

By MARLEY JAY

NEW YORK (AP) — Major U.S. stock indexes are slightly lower Friday as investors take a pause following a steady climb since last week's presidential election. Drugmakers and other health care companies are taking the largest losses. Small-company stocks are at record highs and still rising. Bond yields are rising further and the dollar also continues to climb.

KEEPING SCORE: The Dow Jones industrial average slid 18 points, or 0.1 percent, to 18,886 as of 3:23 p.m. Eastern time. The Standard & Poor's 500 index lost 3 points, or 0.2 percent, to 2,183. The Nasdaq composite touched a record high, but turned lower and gave up 8 points, or 0.2 percent, to 5,325.

Despite those losses, stocks are substantially higher this week after their big gains the week before.

SMALL CAPS GO BIG: Small-company stocks continued to gain and the Russell 2000 index bucked the overall downward trend in the market. That index has risen for 11 days in a row, a streak that dates to before the election. It's up 13 percent over that time and is trading at all-time highs.

Among small-company stocks, mortgage lending service company LendingTree added $6.85, or 7.3 percent, to $100.05 and coal miner Cloud Peak Energy rose 80 cents, or 16.1 percent, to $5.80.

THE QUOTE: "Some of the proposals that Trump has promoted, specifically deregulation and also some of his trade proposals, are better for small companies than potentially they are for large ones," said Katie Nixon, chief investment officer for Northern Trust.

QUEASY FEELING: Losses for drug companies weighed down health care stocks. Botox maker Allergan retreated $6.53, or 3.3 percent, to $193.45 and biotech giant Amgen fell $1.80, or 1.2 percent, to $145.57. Hepatitis C drugmaker Gilead Sciences shed 97 cents, or 1.3 percent, to $74.61.

HOME GOODS GO BAD: Companies that sell common household products are also moving lower. Procter & Gamble gave up 87 cents, or 1.1 percent, to $82.20 and drugstore operator Walgreens Boots Alliance slumped 65 cents to $83.33.

RETAIL: Teen clothing company Abercrombie & Fitch fell $2.44, or 14.4 percent, to $14.49 after it reported weak sales and a smaller profit than analysts had expected. Gap's said fewer people visited its stores heading into the holiday season. Its stock gave up $5.03, or 16.4 percent, to $25.68. Sporting goods Hibbett Sports retailer cut its annual forecasts after a weak third-quarter report. It dropped $6.25, or 13.8 percent, to $39.05.

Shoppers are not buying as many clothes and moving toward discount chains. That trend continued as discount retailer Ross Stores rose $2.50, or 3.8 percent, to $68.03 after it posted a better-than-expected profit and sales.

DOLLAR SEEING GREEN: The dollar continued to climb. It's around annual highs against the euro and six-month highs against the yen. The dollar rose to 110.63 yen from 109.89 yen. The euro fell to $1.0599 from $1.0626.

The dollar hasn't been this strong since early 2003. Nixon said that's affecting big multinational companies because it can hurt their sales outside the U.S., but it's less of a problem for smaller, domestically-oriented companies.

BONDS: Investors continued to sell U.S. government bonds at a rapid clip, and bond prices wobbled and turned lower. The yield on the 10-year Treasury note rose to 2.34 percent from 2.30 percent. Bond prices have fallen hard since the election and yields are now at their highest in a year.

ENERGY: Benchmark U.S. crude rose 27 cents to close at $45.69 a barrel in New York, while Brent crude, which is used to price international oils, added 37 cents to $46.86 a barrel in London. Energy companies made the biggest gains on the market. Chevron rose $1.31, or 1.2 percent, to $109.43 and ConocoPhillips jumped $1.25, or 2.9 percent, to $44.86.

OUT IN FORCE: Customer management software maker Salesforce.com jumped after a solid quarterly report and strong guidance. Its stock picked up $2.44, or 3.2 percent, to $77.63.

A MARVEL: Chipmaker Marvell Technology disclosed much stronger sales than analysts expected and gave a surprising forecast for the current quarter. Its stock gained $1.36, or 10.2 percent, to $14.72.

METALS: Gold fell $8.20 to $1,208.70 an ounce. Silver lost 15 cents to $16.62 an ounce. Copper dipped 2 cents to $2.47 a pound.

OTHER ENERGY TRADING: Wholesale gasoline stayed at $1.34 a gallon. Heating oil picked up 1 cent to $1.46 a gallon. Natural gas climbed 14 cents, or 5.2 percent, to $2.84 per 1,000 cubic feet.

OVERSEAS: France's CAC 40 fell 0.5 percent and the FTSE 100 in Britain dipped 0.3 percent. The German DAX lost 0.2 percent. Japan's benchmark Nikkei 225 index added 0.6 percent as the yen hit a six-month low, helping shares of the country's big exporters. South Korea's Kospi shed 0.3 percent and Hong Kong's Hang Seng rose 0.4 percent.

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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

Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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