Dow pares drop on report Trump not part of Russia probe
The Dow Jones Industrial Average pared its decline on Thursday after a news report indicated that President Donald Trump is not part of the investigation of Russia's tampering during the 2016 election.
Bloomberg cited two people familiar with the matter when it reported that Deputy Attorney General Rod Rosenstein told Trump last week that he isn’t a target of any part of Special Counsel Robert Mueller’s investigation. The Dow trimmed its losses by about 100 points following the Bloomberg report.
The S&P 500 and Nasdaq snapped a three-day winning streak as weakness in consumer staples and technology stocks offset a rally in financials.
The stock of Philip Morris posted its biggest drop in a decade after the tobacco giant reported revenue that missed estimates as well as a decline in cigarette volume and slower growth in its smokeless tobacco product.
The company’s shares plunged 16%, which was the biggest percentage decline since 2008, when Philip Morris split from Altria Group.
The Dow fell 83.18 points, or 0.3%, to 24,664.89. The S&P 500 slid 15.51, or 0.6%, to 2,693.13. The Nasdaq Composite was down 57.18 points, or 0.8%, at 7,238.06.
Procter & Gamble dropped 3.3% after agreeing to buy the consumer healthcare unit of Germany's Merck KGaA for about $4.2 billion. The U.S. company posted fiscal third-quarter earnings that beat expectations.
Apple decreased 2.8% after Taiwan Semiconductor Manufacturing, a supplier of the iPhone maker, published a weak forecast.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 229.87 | +1.35 | +0.59% |
| PG | PROCTER & GAMBLE CO. | 176.25 | +3.48 | +2.02% |
| PM | PHILIP MORRIS INTERNATIONAL INC. | 129.99 | -1.22 | -0.93% |
A new multiyear high in oil and a spike in metals on concern over Russia sanctions rekindled inflation fears, sending the 10-year Treasury yield back above 2.9% to the highest since February.
Oil settled slightly lower after rallying as much as 1.6% earlier to the highest since November 2014. The Dow slipped on Wednesday, with IBM shares weighing on the index, while energy and industrial shares helped the broader market post modest gains.
The Fed published its Beige Book on Wednesday, saying activity remained at a modest to moderate pace. Contacts at nine of the dozen Fed regional banks expressed concern about trade tariffs.