NEW YORK (AP) — U.S. stocks finished slightly higher on Wednesday as investors picked stocks that pay big dividends, like real estate and phone companies. Energy companies fell with the price of oil and health care stocks continued to slide.
Stocks barely budged for most of the day. The top gains went to the biggest dividend-payers, which are seen as relatively safe investments. The price of oil, which reached a 15-month high on Monday, inched lower for the second day in a row. Health care stocks continued to lose ground after health insurer Humana said its bonus payments from Medicare could be reduced.
Investors opted for safety a day after some weak earnings reports sent stocks sharply lower.
"People were worried that we'd continue to see investors shy away from what might be an erratic earnings season," said Kate Warne, an investment strategist for Edward Jones. "It's good news that investors are a little more optimistic and looking forward."
The Dow Jones industrial average edged up 15.54 points, or 0.1 percent, to 18,144.20. The Standard & Poor's 500 index added 2.45 points, or 0.1 percent, to 2,139.18. The Nasdaq composite slipped 7.77 points, or 0.1 percent, to 5,239.02.
Investors bought big dividend payers like real estate investment trust and utilities. Those stocks are the worst performers on the market over the last three months. Early in the year those stocks soared as investors looked for safe picks while the market tumbled.
Real estate investment trust Crown Castle International added $2.45, or 2.8 percent, to $91.45 and American Tower Corp. picked up $2.60, or 2.4 percent, to $111.54. Verizon led phone companies higher with a gain of 40 cents, or 0.8 percent, to $50.30 and utility WEC Energy gained 83 cents, or 1.5 percent, to $57.42.
Stanley Black & Decker agreed to buy the tools business of consumer products maker Newell Brands for $1.95 billion. The deal will give Stanley Black & Decker brands including Irwin and Lennox and will help Newell Brands simplify its business after its purchases of Jarden and Elmer's within the last year. Stanley Black & Decker gained $3.39, or 2.9 percent, to $121.05 and Newell Brands rose $1.08, or 2.1 percent, to $51.42.
Health insurer Humana said its plans received lower ratings from the Centers for Medicare and Medicaid Services, and weaker ratings could reduce the bonus payments the company gets from the government. For 2018, the company said 37 percent of its members are in plans rated 4 stars or higher, That's down from 78 percent a year ago. The stock fell $9.09, or 5.1 percent, to $168.44
Other health care companies including drugmakers Allergan, Biogen and Endo also fell, as did health insurer Cigna and genetics research company Illumina.
Companies that make and sell household necessities joined in the gains. Supermarket Kroger jumped $1.08, or 3.6 percent, to $31.19 and CVS Health rose $1.07, or 1.2 percent, to $87.47.
Wireless equipment maker LM Ericsson plunged after it forecast disappointing quarterly results and said it doesn't expect improvement any time soon. Its stock lost $1.46, or 20.8 percent, to $5.54. Also struggling were Cisco Systems, which lost 70 cents, or 2.3 percent, to $30.34 while Juniper Networks gave up 46 cents, or 1.9 percent, to $23.48.
Benchmark U.S. crude oil slid 61 cents, or 1.2 percent, to close at $50.18 a barrel in New York. Brent crude, the international standard, fell 60 cents, or 1.1 percent, to close at $51.81 a barrel in London. That sent energy companies lower. Chevron lost 89 cents to $102.15 and National Oilwell Varco shed 88 cents, or 2.4 percent, to $36.08.
Bond prices fell. The yield on the 10-year Treasury note climbed to 1.77 percent from 1.76 percent. While bond yields are low by historic standards, they're currently at their highest levels since the beginning of June as investors grow more certain that the Federal Reserve will raise interest rates in the coming months.
Network security company Fortinet fell after it released disappointing third-quarter estimates. The company said its customers are taking their time before buying, and its new sales organization struggled in North America. The stock shed $3.43, or 10.1 percent, to $30.66.
Cloud-based security and storage company Barracuda Networks gained $2.14, or 9.2 percent, to $25.47 after it reported a larger profit and better sales than expected.
The dollar rose to 104.25 yen from 103.41 yen. The euro dipped to $1.1011 from $1.1053. The British pound inched up to $1.2193 from $1.2133 but remains at its lowest levels in decades.
Gold inched down $2.10 to $1,253.80 an ounce. Silver remained at $17.51 an ounce. Copper slid 1 cent to $2.18 a pound.
Wholesale gasoline fell 2 cents to $1.46 a gallon. Heating oil lost 2 cents to $1.57 a gallon. Natural gas slid 3 cents to $3.21 per 1,000 cubic feet.
France's CAC 40 slipped 0.4 percent and the DAX in Germany fell 0.6 percent. Britain's FTSE 100 was down 0.7 percent. Japan's benchmark Nikkei 225 lost 1.1 percent and South Korea's Kospi inched up 0.1 percent. Hong Kong's Hang Seng slipped 1 percent.