NEW YORK (AP) — U.S. stocks are little changed Friday morning as banks climb but retailers and big-dividend stocks slide. The Federal Reserve said production of cars and energy jumped in August.
Interest rates are climbing as investors expect continued economic growth and further interest rate increases. However, monthly retail sales were weaker than analysts expected.
Shares of Canadian marijuana companies are slumping following a report that the U.S. may ban people who work in that industry from entering the country.
KEEPING SCORE: The S&P 500 index dipped 1 point, or 0.1 percent, to 2,902 as of 10:20 a.m. Eastern time. The Dow Jones Industrial Average rose 5 points to 26,151. The Nasdaq composite gained 2 points to 8,016. The Russell 2000 index of smaller-company stocks slid 1 point, or 0.1 percent, to 1,713.
FACTORY FACTOR: U.S. industrial production rose by a healthy 0.4 percent in August, according to the Federal Reserve. The central bank said production of autos climbed, while production of oil and natural gas continued to rise. Aerospace company Boeing gained 0.9 percent to $358.55 and shipbuilder Huntington Ingalls gained 1.1 percent to $251.60.
The Fed’s report is a sign the U.S. economy is likely to keep growing, which means the Federal Reserve is likely to continue raising interest rates. The yield on the 10-year Treasury note rose to 3 percent from 2.96 percent late Thursday.
That helped banks, as higher long-term interest rates help them make more money from mortgages and other types of loans. Lincoln National rose 1.2 percent to $65.98 and Citigroup rose 0.7 percent to $70.61.
RETAIL SALES: Consumers slowed their spending in August and the Commerce Department said retail sales grew 0.1 percent for the month. The prices for clothing and other items dipped, which might have encouraged shoppers but reduced revenue