NEW YORK (AP) - U.S. stocks slipped for the third consecutive day Thursday as media and defense companies skidded. Bond yields climbed to their highest levels since May, which helped banks and hurt stocks that pay big dividends.
Stocks started the day higher and were flat at midday, then gradually slid through the afternoon. Cable and TV companies and publishers sank, and industrial companies like Raytheon and L-3 Communications fell after reporting weak results.
Bond prices fell and yields climbed. That helped banks, since they'll earn more from lending as interest rates rise. It also sent high-dividend stocks like utilities and real estate companies lower as bonds become more appealing to investors seeking income.
Scott Kimball, co-portfolio manager of the BMO TCH Core Plus Bond Fund, said investors believe central banks will cut back on bond buying. In recent days that's sent prices lower and yields higher.
"The largest bond buyers, the biggest bond managers in the market, have been these central banks," he said. Kimball added yields could rise further if economic growth picks up.
The Dow Jones industrial average fell 29.65 points, or 0.2 percent, to 18,169.68. The Standard & Poor's 500 index sank 6.39 points, or 0.3 percent, to 2,133.04. The Nasdaq composite lost 34.29 points, or 0.7 percent, to 5,215.97.