US Stocks Slip on AI Fears; Oil Prices 02/19 15:19

   U.S. stocks fell Thursday, while oil prices rose with worries about a 
potential conflict between the United States and Iran.

   NEW YORK (AP) -- U.S. stocks fell Thursday, while oil prices rose with 
worries about a potential conflict between the United States and Iran.

   The S&P 500 slipped 0.3% for its first loss in four days. The Dow Jones 
Industrial Average dropped 267 points, or 0.5%, and the Nasdaq composite 
slipped 0.3%.

   Booking Holdings dropped 6.1% for one of the market's sharper losses, even 
though the company behind the Booking.com, Priceline and OpenTable brands 
reported a profit for the latest quarter that edged past analysts' expectations.

   Its stock has been under pressure because of worries that competitors 
powered by artificial-intelligence technology could upend its industry and take 
away customers. Booking's stock has lost roughly a quarter of its value so far 
this year already.

   Such worries have been rolling through Wall Street, hitting industries as 
far flung as software and legal services and trucking logistics. Investors have 
been punishing stocks of companies seen as under threat by AI so suddenly and 
aggressively that analysts have likened it to a "shoot first-ask questions 
later" mentality.

   The doubts are hurting not just companies seen as potential victims of AI 
but also the private-credit companies that have lent them money. Blue Owl 
Capital fell 5.9% to bring its loss for the year so far to 22.5%, for example. 
Apollo Global Management dropped 5.2%, and Ares Management sank 3.1%.

   Carvana sank 7.9% even though the retailer reported a stronger profit for 
the latest quarter than analysts expected. Investors may have been paying more 
attention to how much profit the auto retailer made per vehicle sold, which was 
lower than expected.

   Walmart, meanwhile, pushed and pulled on the market after jumping to an 
early gain of 2.7% and then flipping to a loss. The retail giant delivered 
stronger results for the latest quarter than analysts expected, but it gave a 
profit forecast for the upcoming year that fell short of estimates. It finished 
the day with a loss of 1.4%.

   Helping to limit the market's losses was Deere, which jumped 11.6% after the 
machinery maker reported a higher profit than analysts expected. CEO John May 
said it's seeing a continued recovery in demand from construction and smaller 
agricultural customers, though its global, large agricultural customers are 
still feeling pressure.

   Some of the bigger gains in the S&P 500 came from stocks of oil companies, 
which climbed with the price of crude. A barrel of benchmark U.S. crude rose 
1.9% to $66.43, while Brent added 1.9% to $71.66 per barrel.

   Oil prices rose with worries about a possible military confrontation between 
the United States and Iran. President Donald Trump has been raising the 
pressure on Iran, which is home to some of the world's largest oil reserves, 
because of its disputed nuclear program. If a conflict were to break out, it 
could constrict the global flow of oil.

   Occidental Petroleum jumped 9.4% after it also reported a stronger profit 
for the latest quarter than analysts expected.

   All told, the S&P 500 fell 19.42 points to 6,861.89. The Dow Jones 
Industrial Average dropped 267.50 to 49,395.16, and the Nasdaq composite lost 
70.91 to 22,682.73.

   In the bond market, Treasury yields held relatively steady after a report 
said the number of U.S. workers applying for unemployment benefits eased last 
week. That could be a signal that the pace of layoffs is slowing.

   A solid job market, in turn, could keep the Federal Reserve on hold for 
longer before it resumes its cuts to interest rates. Fed officials said at 
their last meeting that they want to see inflation fall further before they 
would support cutting rates further this year.

   If oil prices keep rising, that would push upward on inflation.

   The yield on the 10-year Treasury slipped to 4.07% from 4.09% late Wednesday.

   Other U.S. economic reports said that growth for manufacturing in the 
mid-Atlantic region is accelerating, but potential homebuyers across the 
country didn't sign as many contracts in January to purchase. The U.S. trade 
deficit also widened in December by more than economists expected.

   In stock markets abroad, indexes fell in Europe following better 
performances in Asia.

   South Korea's Kospi jumped 3.1% as trading resumed following a Lunar New 
Year holiday. Markets in Hong Kong and Shanghai remained closed.