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Banks Lead US Stocks Slightly Lower

Dow ends day down 120
By Newser Editors and Wire Services
Posted Aug 27, 2019 3:16 PM CDT
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In this Aug. 19, 2019, file photo trader Frank Masiello, left, and specialist Anthony Matesic work on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

(Newser) – Banks led stocks modestly lower on Wall Street, erasing some of the markets' gains from a big rally a day earlier, the AP reports. Financial companies were weak Tuesday as investors piled into U.S. government bonds, which sent yields lower. Lower yields mean lower profits for banks because they send interest rates on mortgages and other loans down. Citigroup lost 1.7%. Investors were also unnerved because long-term yields once again fell below short-term ones, a rare phenomenon that has correctly predicted previous recessions. JM Smucker plunged 8.2% after turning in weak results. The S&P 500 fell 9 points, or 0.3%, to 2,869. The Dow Jones Industrial Average lost 120 points, or 0.5%, to 25,777. The Nasdaq fell 26 points, or 0.3%, to 7,826. (Read more stock market stories.)

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