US stocks close lower, ending Dow's 10-day rally
Traders are processing big banks' scores on "stress tests" administered by the Fed. The Fed said late Thursday that JPMorgan Chase and Goldman Sachs both need better plans to cope with a severe recession. It gave them until September to revise their plans.
Still, the Fed allowed both banks to increase their dividends and buy back their stock, signaling that regulators believe the banks are fundamentally sound.
The stock of JPMorgan fell 98 cents, or 1.9 percent, to $50.02. Goldman's stock rose 82 cents, or 0.5 percent, to $154.84.
The S&P 500 closed just five points from its all-time closing high of 1,565, reached in October 2007.
The yield on the 10-year Treasury note fell to 1.99 percent from 2.06 percent early Thursday, as demand increased for ultra-safe investments.
Among the other companies making big moves:
— Cruise ship operator Carnival Corp. fell 78 cents, or 2.2 percent, to $34.95. The company said passengers have been booking vacations at a slower pace after a series of high-profile mishaps.
— Krispy Kreme Doughnuts Inc. plunged after saying its fiscal fourth-quarter net income dropped sharply and fell short of expectations. The stock fell 41 cents, or 2.7 percent, to $14.54.
— Teen apparel chain Aeropostale Inc. fell 76 cents, or 5.2 percent, to $13.75, after posting a loss in its fiscal fourth quarter and saying it expects another one in the current quarter.
Daniel Wagner can be reached at www.twitter.com/wagnerreports .