Financial Markets                      04/18 16:07

   

   U.S. stock indexes drifted to a mixed finish on Thursday in a quiet day of 
trading.

   The S&P 500 fell 11.09 points, or 0.2%, to 5,011.12 after flipping between 
small gains and losses through the day. The drop was slight, but it was still 
enough to send the index to a fifth straight loss. That's its longest losing 
streak since October, and it's sitting 4.6% below its record set late last 
month.

   The Dow Jones Industrial Average edged up by 22.07 points, or 0.1%, to 
37,775.38, and the Nasdaq composite slipped 81.87, or 0.5%, to 15,601.50.

   Equifax dropped 8.5% for one of the market's bigger losses after it reported 
weaker revenue for the latest quarter than analysts expected. High interest 
rates are pressuring its mortgage credit inquiry business.

   The only stock to fall more in the S&P 500 was Las Vegas Sands, which sank 
8.7% even though it reported better results than expected. Analysts said 
investors may be worried about competition the casino and resort company is 
facing in Macau.

   Helping to offset those losses was Elevance Health, which climbed 3.2% after 
raising its profit forecast for the full year. Genuine Parts jumped 11.2% for 
the biggest gain in the S&P 500 after the distributor of automotive and 
industrial replacement parts reported stronger profit than analysts expected. 
It also raised its range for forecasted profits over the full year.

   Stocks broadly have been struggling recently as yields in the bond market 
charge higher. They're cranking up the pressure because investors have largely 
given up on hopes that the Federal Reserve will deliver many cuts to interest 
rates this year.

   Yields climbed a bit higher after more reports on Thursday showed the U.S. 
economy remains stronger than expected.

   One report said fewer workers applied for unemployment benefits last week 
than economists expected. It's the latest sign that the job market remains 
solid despite high interest rates.

   That resilience "continues to generate a solid flow of paychecks to keep 
fueling consumer demand," according to Carl Riccadonna, chief U.S. economist at 
BNP Paribas. His team is forecasting the U.S. economy grew at a faster rate in 
the first three months of the year than other economists generally.

   Another report on Thursday said growth in manufacturing in the mid-Atlantic 
region accelerated sharply, when economists were expecting a contraction.

   A third report said sales of previously occupied U.S. homes didn't fall by 
quite as much last month as economists expected.

   Similar such data, along with a string of reports showing inflation has 
remained hotter than forecast this year, pushed top Fed officials to say 
recently they could hold interest rates high for a while.

   It's a letdown after the Fed earlier had signaled three cuts to interest 
rates could be possible this year. But Fed officials have been adamant they 
want to be sure inflation is heading down toward their 2% target before 
lowering the Fed's main interest rate from its highest level since 2001.

   Lower rates would juice the economy and financial markets, but they could 
also give inflation fuel to reaccelerate.

   Traders are now forecasting just one or two cuts to rates this year, 
according to data from CME Group, down from expectations for six or more at the 
start of the year.

   In the bond market, the yield on the 10-year Treasury rose to 4.63% from 
4.59% late Wednesday. The two-year Treasury yield, which moves more closely 
with expectations for Fed action, rose to 4.98% from 4.94%.

   The hoped-for upside on Wall Street of a strong economy that's keeping 
interest rates high is that it could also drive strong growth in profits. 
Companies will need to deliver such strength in order to justify the run stock 
prices have been on since late October, setting records along the way.

   The recent drops for stock prices have made them look less expensive, but 
they won't look cheap unless either prices fall further or profits jump higher.

   Alaska Air, the carrier that suffered a midflight blowout of a door plug on 
a Boeing aircraft in January, rose 4% after it projected better profits for the 
current quarter than analysts expected.

   Ally Financial jumped 6.7% after reporting stronger earnings for the latest 
quarter than Wall Street had forecast.

   Ibotta, a Walmart-backed digital company that offers customers cash-back 
rewards and rebates on grocery brands ranging from Nestle to Coca-Cola, soared 
17.3% in its first day of trading.

   In stock markets abroad, indexes rose modestly across much of Europe and 
Asia. South Korea's Kospi was a standout. It jumped 2% to help lead markets 
worldwide.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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