Financial Markets                      02/19 09:32

   

   NEW YORK (AP) -- U.S. stocks are drifting on Thursday following mixed profit 
reports from Walmart and other big companies. Oil prices, meanwhile, are rising 
on renewed worries about a potential conflict between the United States and 
Iran.

   The S&P 500 slipped 0.2% in morning trading and was potentially heading for 
its first loss in four days. The Dow Jones Industrial Average was down 184 
points, or 0.4%, as of 10:15 a.m. Eastern time, and the Nasdaq composite was 
0.1% lower.

   Booking Holdings dropped 7.1% for one of the market's sharpest 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 at some point, and it's lost roughly a quarter 
of its value so far this year already.

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

   Carvana sank 5.3% despite also reporting 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.

   Helping to keep the market in check was Walmart, which rose 2% after 
swinging between gains and losses in premarket trading. The retail giant 
delivered stronger results for the end of its last fiscal year than analysts 
expected, but it gave a profit forecast for the upcoming year that fell short 
of estimates.

   Also on the winning side of Wall Street was eBay, which rose 2.8% after 
reporting stronger profit and revenue than analysts expected. It also said it 
was buying secondhand fashion marketplace Depop from Etsy for about $1.2 
billion in cash. The deal could help eBay find younger customers.

   The biggest gains on Wall Street came from stocks of oil companies, which 
climbed with the price of crude. A barrel of benchmark U.S. crude added 1.8% to 
$66.19, while Brent crude climbed 1.2% to $71.20 as worries rise again 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 7.3% after it also reported a stronger profit 
for the latest quarter than analysts expected.

   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 held at 4.09%, where it was late Wednesday.

   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, though, remained closed.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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