Energy companies led a slight slide in U.S. stock indexes Friday morning as the price of crude oil headed lower. Health-care stocks were the biggest gainers as investors sized up earnings from American Airlines, Starbucks, Microsoft and other big companies. Bond yields fell after the government reported that the economy lost momentum in the last three months of 2016.
KEEPING SCORE: The Dow Jones Industrial Average fell 19 points, or 0.1 percent, to 20,081 as of 11:23 a.m. Eastern Time. The Standard & Poor’s 500 index slid 3 points, or 0.1 percent, to 2,293. The Nasdaq composite index lost 2 points, or 0.1 percent, to 5,652.
THE ECONOMY: The Commerce Department said the U.S. economy grew at an annual rate of just 1.9 percent in the last three months of 2016, a slowdown from 3.5 percent in the previous quarter. For 2016, the economy grew 1.6 percent, the worst showing since 2011 and down from 2.6 percent in 2015. A separate government report showed that businesses spent more on industrial machinery, semiconductors and other big-ticket items last month, a sign that U.S. manufacturers seem to be doing better after a two-year slump.
WEAK BREW: Starbucks was down 3.8 percent a day after the coffee-shop chain reported disappointing sales growth. The company said the popularity of its mobile order-and-pay option, which was supposed to make getting a drink easier, has caused bottlenecks at the areas where people pick up their drinks. Starbucks also cut its sales forecast for the year. The stock lost $2.19 to $56.27.
LOWER PROFIT: American Airlines Group fell 4.3 percent after the airline said earnings declined in the fourth quarter from a year earlier, when it received a huge tax benefit. The stock fell $2.14 to $47.45.
NOT GOOD ENOUGH: Shares in Chevron slid 2.4 percent after the oil company reported fourth-quarter results that fell short of Wall Street’s expectations. The stock shed $2.78 to $113.77.
ROUGH QUARTER: Colgate-Palmolive tumbled 6.9 percent after its fourth-quarter sales missed analysts’ estimates. The company’s 2017 forecast also disappointed investors. The stock fell $4.70 to $63.54.
UGLY OUTLOOK: Juniper Networks slid 3.8 percent after the computer-networking-equipment maker’s strong quarterly results were canceled out by a bad profit forecast for the current quarter. The stock fell $1.06 to $26.66.
PLEASANT STAY: Wynn Resorts surged 8 percent after the company’s revenue came in stronger than analysts had expected. The stock added $7.63 to $103.13.
EVOLVED: Microsoft gained 2 percent a day after the software giant reported stronger-than-expected quarterly results, thanks to its focus on online services and business software rather than its legacy Windows operating system. The stock was up $1.30 to $65.57. It’s been at all-time highs for months.
TRUMP: Investors remain focused on the latest moves by President Donald Trump. His spokesman said the administration was considering slapping a 20 percent tax on imports from Mexico to help pay for his promised border wall, in an announcement that left markets uncertain about what it means for trade. Trump’s joint press conference with visiting British Prime Minister Theresa May scheduled for later Friday could also provide trading catalysts, especially for the pound.
MARKETS OVERSEAS: In Europe, Germany’s DAX was down 0.4 percent, while France’s CAC 40 was 0.6 percent lower. Britain’s FTSE 100 was up 0.2 percent. In Asia, Japan’s benchmark Nikkei 225 index climbed 0.3 percent, helped by the dollar’s surge against the Japanese yen, while Hong Kong’s Hang Seng slipped 0.1 percent. Many Asian countries have begun holidays of varying lengths, curtailing trading across much of the region. Markets in China, South Korea and Taiwan were closed while Malaysia’s was open only in the morning.
ENERGY: Benchmark U.S. crude oil was down 65 cents, or 1.2 percent, at $53.13 a barrel in New York. Brent crude, used to price international oils, was down 85 cents, or 1.5 percent, at $55.65 a barrel in London.
TREASURY YIELDS: Bond prices rose after the government reported its latest quarterly estimate of the nation’s economic growth. The 10-year Treasury yield fell to 2.49 percent from 2.51 percent late Thursday.
CURRENCIES: The dollar strengthened to 115.03 yen from 114.42 yen on Thursday. The euro rose to $1.0704 from $1.0692.