NEW YORK (AP) – U.S. stocks are lower Wednesday as investors look for safety following a drop in retail sales last month. It was the first decline in more than a year, and investors are buying government bonds and high-dividend stocks and selling bank stocks. Energy companies are dropping along with oil prices. The Federal Reserve is expected to raise interest rates later in the day.
KEEPING SCORE: The Standard & Poor’s 500 index dipped 2 points, or 0.1 percent, to 2,437 as of 11:40 a.m. Eastern time. The Dow Jones industrial average picked up 9 points to 21,337. The Nasdaq composite added 2 points to 6,222.
Small-company stocks fell more than the rest of the market. The Russell 2000 index sank 8 points, or 0.6 percent, to 1,418. That suggests investors are worried about the economy, which could have an outsize effect on smaller, domestically-focused companies.
More stocks fell than rose on the New York Stock Exchange. The S&P 500, Dow and Russell all closed at record highs Tuesday. The Nasdaq isn’t far from the record it set last week, but it was hit particularly hard by the steep sell-off in technology companies Friday and Monday.
RETAIL SALES: The Commerce Department said people spent less money at gas stations, department stores and electronics retailers last month. The result was a surprise to analysts, who expected sales to grow. Video game seller GameStop gave up 62 cents, or 2.8 percent, to $21.36 and electronics retailer Best Buy lost 51 cents to $57.34. Department store chain Kohl’s dropped 99 cents, or 2.6 percent, to $37.06 and Macy’s slid 13 cents to $22.13.