Tech stocks lead US indexes higher; hospitals, insurers sink
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NEW YORK — A strong forecast from PC and printer maker HP is helping technology companies Friday as U.S. stock indexes approach record highs again. Retailers are also up after the Commerce Department said Americans shopped more in September. Health insurers and hospital operators are skidding after President Donald Trump said he will stop government payments to insurance companies under the Affordable Care Act.
KEEPING SCORE: The Standard & Poor's 500 index added 5 points, or 0.2
HEALTH SCARE: The White House said late Thursday that it is stopping subsidy payments to insurers under the 2010 health care law. Those payments help reduce copays and deductibles for people with lower incomes. The move could reduce payments to hospitals and raise costs for insurers. Adding to the uncertainty, the sign-up period for subsidized private insurance starts Nov. 1.
Medicaid program administrator Centene lost $3.23, or 3.4
SHHH: Third-quarter results are pouring in, but investors haven't reacted much so far. Sean Lynch, the co-head of global equity strategy for Wells Fargo Investment Institute, said that unless this batch of corporate reports is surprisingly good, stocks won't rise much further.
"If we come in at expectations or slightly above, I think markets maintain these gains," he said. But if that doesn't happen, Lynch said the S&P 500 could decline four or five
Wells Fargo fell $1.81, or 3.3
Bank of America rose 47 cents, or 1.8
TECH GAINS: HP forecast an adjusted profit of $1.74 to $1.84 a share in its next fiscal year, which is better than Wall Street expected, and also said it will return at least 50
HP stock gained $1.57, or 7.7
SHOPPING DIDN'T DROP: The Commerce Department said retail sales grew 1.6
Tiffany jumped $2.46, or 2.7
METALS CLIMB: Materials companies rose with metals prices. Gold gained $8.10 to $1,304.60 an ounce. Silver climbed 15 cents to $17.41 an ounce. Copper rose 1 cent to $3.13 a pound.
Steel prices climbed after Bloomberg News reported that China imported a record amount of iron ore in September and exported less steel. That sent prices higher. U.S. Steel climbed $1.85, or 7.2
PG&E WOES: Utility PG&E continued to tumble as investors wondered if the company will face stiff fines connected to the California wildfires. Officials said Thursday they are investigating the possibility that downed power lines or other faulty equipment touched off the fires. The stock dropped 6.7
Citi Investment Research analyst Praful Mehta said the company lost $2.2 billion in value Thursday, and even if PG&E were found responsible and grossly negligent for the fires, it probably wouldn't be fined much more than that.
The fires have killed 31 people and destroyed at least 3,500 homes and businesses since Sunday, and they are expected to become the deadliest and most destructive in California history.
GRAB A TWINKIE FOR THE ROAD: Hostess Brands slumped after President and CEO Bill Toler said he will resign by March 1. He will remain a member of the company's board. Another top executive, Chief Operating Officer Stuart Wilcox, left the company in August. The stock gave up $1.44, or 10.8
ENERGY: Energy companies rose along with oil prices. Benchmark U.S. crude oil picked up 85 cents, or 1.7
Wholesale gasoline rose 4 cents to $1.62 a gallon. Heating oil added 3 cents to $1.80 a gallon. Natural gas edged up 1 cent to $3 per 1,000 cubic feet.
BONDS: Bond prices rose. The yield on the 10-year Treasury note declined to 2.28
CURRENCIES: The dollar fell to 111.89 yen from 112.22 yen. The euro dipped to $1.1817 from $1.1836.
OVERSEAS: The DAX in Germany rose 0.1
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at https://apnews.com/search/marley%20jay