By STAN CHOE AP Business Writer
NEW YORK (AP) — The U.S. stock market held near its record high after oil prices eased again. The S&P 500 edged down a fraction of a point and is sitting just 0.4% below its all-time high set last month. The Dow Jones Industrial Average dropped 0.4%, and the Nasdaq composite added 0.5% to its own record. Stocks had been higher in the morning, when the price for a barrel of Brent crude briefly fell below $98. But oil prices later trimmed their losses, and Brent settled at $99.25 per barrel. Treasury yields held relatively steady in the bond market, as did stock indexes worldwide.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — The U.S. stock market is inching closer to its record high on Tuesday after oil prices eased again.
The S&P 500 rose 0.1% and is sitting just 0.3% below its all-time high set last month. The Dow Jones Industrial Average was down 135 points, or 0.3%, with about 40 minutes remaining in trading, and the Nasdaq composite was adding 0.5% to its own record.
Stocks had been higher in the morning, when the price for a barrel of Brent crude briefly fell below $98. But oil prices later trimmed their losses, and Brent settled at $99.25 per barrel, down 1.1%.
That’s down from the nearly $110 that it touched last week, but it’s still much more expensive than the $72 it was fetching before the war with Iran began. It’s been swinging with uncertainty about when the war will allow crude to freely flow again from the Middle East to customers worldwide.
On Wall Street, AutoZone rose 4.3% after the retailer reported a stronger profit for the latest quarter than analysts expected, though its revenue fell short. CEO Phil Daniele said the auto parts seller faced “a difficult selling environment” in the first two months of the quarter, but it improved afterward and “we feel we are well positioned for sales growth” in its upcoming fiscal year.
At Thor Industries, which sells recreational vehicles, the mood was more muted. CEO Bob Martin said expensive fuel, high interest rates and still-high inflation are stretching its customers’ budgets, and business “never reached the inflection point many in the industry expected” in its latest fiscal year.
Its stock rose 4.7%, though, after it delivered a stronger profit for the latest quarter than analysts expected.
Such strong profit reports are one of the main reasons the U.S. stock market has reached the brink of its all-time high despite expensive oil and jitters about whether stocks in the artificial-intelligence industry shot too high.
Many companies are close to closing the books on their third quarter of the year, which ends with September. And analysts are forecasting companies in the S&P 500 will report overall growth of nearly 29% for the quarter from a year earlier, according to FactSet.
If they’re right, it would be the third straight quarter of growth better than 25% for the index. And stock prices tend to follow the track of corporate profits over the long term.
On Holding’s stock that trades in the United States jumped 8.9% after the Swiss sneaker and sportswear company unveiled its financial goals for upcoming years. It also approved a plan to buy back up to $1 billion of its stock through 2029. Such purchases send cash directly to investors and boost the company’s per-share performance.
On the losing end of Wall Street were several stocks of companies in the oil and gas industry, which were hurt by the drop in crude prices. ConocoPhillips fell 1.2%.
Banks also dropped, continuing their weak run since last week, when the Federal Reserve raised the overnight interest rate that it controls for the first time in three years. When the spread narrows between short-term interest rates and longer ones, banks come under pressure because they make profit off the difference.
JPMorgan Chase fell 3.2% and was one of the heaviest weights on the S&P 500.
The gap between short- and long-term yields in the bond market did not move much Tuesday, and the 10-year Treasury yield remained at 4.96%, where it was late Monday.
In stock markets abroad, indexes ticked higher across much of Europe and Asia. London’s FTSE 100 was an outlier and dipped 0.3%.
Stocks rose 0.2% in Hong Kong and 0.1% in Shanghai after Alibaba unveiled new artificial intelligence chip technologies, including what it said was China’s most powerful AI chip. That comes just days ahead of a meeting between Chinese and U.S. leaders at which competition to lead on AI technology is expected to be a major theme.
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AP Business Writer Yuri Kageyama contributed to this report.