NEW YORK (AP) — U.S. stocks are taking small losses Friday morning as energy companies are slipping with the price of oil. Citigroup became the latest bank to report weak but better-than-expected results for the first quarter.
MORNING RUSH: The Dow Jones industrial average fell 28 points, or 0.2 percent, to 17,898 as of 10:10 a.m. Eastern time. The Standard & Poor’s 500 index lost 4 points, or 0.2 percent, to 2,079. The Nasdaq composite sank 13 points, or 0.3 percent, to 4,933.
OIL: U.S. crude fell $1.36, or 3.3 percent, to $40.14 a barrel in New York. Brent crude, the international benchmark, lost $1.42, or 3.2 percent, to $42.42 a barrel in London. The prices of wholesale gasoline, heating oil and natural gas also slumped.
This weekend, ministers from major oil-producing companies will meet in Qatar to discuss their production policies. The price of oil has risen in recent weeks as investors hope for a deal that will limit oil production in an effort to relieve a global glut and increase oil prices. But a deal is far from a sure thing, and hopes for a meaningful production cut faded Friday and oil prices declined with them.
Chevron lost 83 cents to $97.15 and Devon Energy declined 73 cents, or 2.3 percent, to $30.62. Noble Energy lost 94 cents, or 2.8 percent, to $32.13.
MAKING BANK: Banks continued to report their first-quarter results, and in general they haven’t been as bad as analysts feared. Citigroup’s profit shrank 27 percent on weak results from its consumer bank and trading businesses, but the bank’s net income and revenue were greater than expected. The stock rose 78 cents, or 1.7 percent, to $47.15.
Bank holding company Regions Financial also reported a bigger profit and greater revenue than expected. Its stock added 24 cents, or 2.8 percent, to $8.72.
CHINA: China reported that its economy grew 6.7 percent in the first quarter of 2016. While that is the slowest pace in years, it matched analyst projections.
FACTORIES: U.S. factory production fell for the second month in a row, according to the Federal Reserve. That suggests American manufacturers are struggling with weak growth overseas, the strong dollar, and weak spending by U.S. consumers and businesses.
OVERSEAS: The FTSE 100 index of leading British shares fell 0.4 percent and Germany’s DAX was down 0.3 percent. The CAC-40 in France was 0.2 percent lower at 4,488. The benchmark Nikkei 225 index in Japan shed 0.4 percent, while South Korean Kospi dipped 0.1 percent. Hong Kong’s Hang Seng slipped 0.1 percent.
BONDS, CURRENCIES: Bond prices rose and the yield on the 10-year U.S. Treasury note declined to 1.77 percent from 1.79 percent. The euro rose to $1.1295 from $1.1267 and the dollar fell to 108.92 yen from 109.28 yen.
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