US Stocks Edge Further From Records    08/17 15:27

   U.S. stocks edged further from their record heights on Monday after rising 
oil prices cranked up the pressure on inflation and financial markets.

   NEW YORK (AP) -- U.S. stocks edged further from their record heights on 
Monday after rising oil prices cranked up the pressure on inflation and 
financial markets.

   The S&P 500 fell 0.5% but remains near its all-time high set Thursday. The 
Dow Jones Industrial Average dropped 272 points, or 0.5%, and the Nasdaq 
composite slipped 0.3%.

   Wall Street's losses solidified in the afternoon when oil prices accelerated 
upward. The price for a barrel of Brent crude, the international standard, rose 
2.7% to $90.87.

   It's been careening back and forth because of uncertainty about what the war 
with Iran will do to the global flow of crude. Last month alone, Brent 
zigzagged between $72 and $102 as hopes rose and fell that the United States 
and Iran could reach a deal that would allow oil tankers to freely exit the 
Persian Gulf again.

   Monday's rally for oil prices sent Treasury yields in the bond market 
higher, which in turn raised the pressure on the economy and prices for all 
kinds of investments.

   The yield on the 10-year Treasury climbed to 4.72% from 4.68% late Friday. 
It has shot up from just 3.97% before the war with Iran, largely because higher 
oil prices are worsening inflation and upping the probability that the Federal 
Reserve will have to hike interest rates.

   Higher rates could keep a lid on inflation, but they do so by intentionally 
slowing the economy. The average long-term U.S. mortgage rate has already 
jumped near its highest level in a year because of the rise in the 10-year 
Treasury yield, though reports last week said that inflation in July was not as 
bad as earlier in the summer.

   Usually around this time of year, anticipation is building on Wall Street to 
hear from the head of the Federal Reserve about where it may take interest 
rates. But the Fed's new chairman, Kevin Warsh, may give little insight at this 
year's economic symposium in Jackson Hole, Wyoming, at the end of this month, 
according to Thierry Wizman, a strategist at Macquarie Group

   Warsh has been adamant about giving Wall Street less guidance about the 
Fed's plans for interest rates.

   Wall Street has run to records despite high inflation in large part because 
profits are booming for U.S. companies.

   Those in the S&P 500 index are on track to deliver growth of roughly 50% for 
earnings per share in the spring from a year earlier, according to FactSet. 
That's much better than analysts expected and would be the best since five 
years ago, when the economy was erupting out of the chasm created by the COVID 
pandemic.

   Nearly all the companies in the S&P 500 have turned in their profit reports 
for the spring. Still to come are big retailers, including reports this week 
from Home Depot, Target and Walmart.

   They're facing pressure. Their customers' incomes may be turning iffier 
after U.S. employers surprisingly cut more jobs last month than they added. At 
the same time, their customers are continuing to see bills rise quickly as 
inflation remains much higher than anyone would like.

   A report last week said that shoppers surprisingly spent less at U.S. 
retailers last month than in June, and CEOs for retailers could give color this 
week on what they're seeing.

   On Wall Street, trading was relatively quiet Monday.

   L3Harris Technologies fell 4.6% after the defense company said Christopher 
Kubasik stepped down as its CEO and chairman following "certain conduct by 
Kubasik that was not consistent with the values of the Company." It gave few 
details but said the conduct was not related to its financial reporting, 
controls, customer relationships or operational performance.

   Alphabet dipped 0.5% even though Berkshire Hathaway said it increased its 
investment in Google's parent company, along with several homebuilders. 
Berkshire built a reputation for buying stocks at affordable prices under its 
former CEO, famed investor Warren Buffett.

   Constellation Brands fell 6.2% after Berkshire said it sold all its holdings 
in the seller of Modelo beer and Robert Mondavi wine.

   All told, the S&P 500 fell 40.70 points to 7,745.06. The Dow Jones 
Industrial Average dropped 272.63 to 53,459.78, and the Nasdaq composite 
slipped 84.25 to 26,644.91.

   In stock markets abroad, indexes dipped in Europe following a stronger 
finish in Asia.

   Tokyo's Nikkei 225 rose 0.7% after a report said Japan's economy grew at a 
slower pace in the April-June quarter than economists expected. Indexes jumped 
1.3% in Hong Kong and 1.4% in Shanghai for some of the world's biggest moves.