- Associated Press - Friday, October 28, 2016

NEW YORK (AP) - U.S. stocks gave up much of an early gain Friday afternoon after the FBI notified Congress that it will investigate new emails linked to Democratic presidential candidate Hillary Clinton. That injected a note of uncertainty just a week and a half before the presidential election.

KEEPING SCORE: The Dow Jones industrial average was up 2 points at 18,169 as of 3:11 p.m. Eastern time. The index had been 80 points higher shortly before the new inquiry was disclosed at about 1 p.m. Eastern, then went down as much as 74 points in the minutes that followed. By late afternoon it was about back near breakeven, as were other major indexes. The Standard & Poor’s 500 index dipped 3 points, or 0.2 percent, to 2,129. The Nasdaq composite slid 18 points, or 0.3 percent, to 5,197.

EARLY GAIN FADES: The market had been higher for much of the day after the government said the economy broke out of its recent slump and grew faster than expected during the third quarter. The Commerce Department said exports grew and more businesses restocked their shelves. In total, gross domestic product grew 2.9 percent, which was better than economists expected. Growth had slowed down late last year, causing worry among investors.

BITTER PILL: Prescription drug distributor McKesson plunged to a three-year low after its revenue fell about $1.5 billion short of estimates. The company slashed its annual outlook because of weaker drug prices, and investors worried that McKesson and its rivals will compete by making bigger cuts in prices. McKesson tumbled $38.21, or 23.8 percent, to $122.29 and competitor AmerisourceBergen lost $10.59, or 13.3 percent, to $68.91 while Cardinal Health shed $8.81, or 11.8 percent, to $65.99.

AMGEN AILING: Amgen, the world’s largest biotech drug company, reported solid results for the third quarter and raised its guidance. However the company also disclosed flat sales of the anti-inflammatory medication Enbrel, its top-selling drug. Enbrel will soon face more competition, which could hurt sales. It gave up $16.83, or 10.5 percent, to $143.74. Drugmaker AbbVie disclosed weak sales and lost $3.98, or 6.5 percent, to $57.49.

Health care stocks are the worst performing part of the market this year: they’re down about 6 percent while the S&P; 500 is up almost 5 percent. Their performance compared to the rest of the market has gotten even worse over the last few months.

DEAL TALK: General Electric and oil and gas drilling services company Baker Hughes said they are in talks about a possible deal. GE said the talks concern a partnership and that it doesn’t intend to buy Baker Hughes outright. Baker Hughes tried to merge with competitor Halliburton two years ago, but the companies walked away from the combination after the federal government sued to block it. GE added 71 cents, or 2.5 percent, to $29.35 and Baker Hughes gained $4.37, or 8 percent, to $58.92.

Other industrial stocks including United Technologies, which makes products including jet engines and elevators, and manufacturer Honeywell also traded higher.

NOT PRIME: Amazon sank after its profit came up short of analyst estimates and the company’s outlook was weak. The stock is trading at all-time highs and has surged more than 30 percent over the last 12 months. It fell $41.62, or 5.1 percent, to $776.74.

SKUNKED BEER: AB InBev cut its annual revenue forecast following weak results from its business in Brazil. The world’s largest beer maker fell $4.36, or 3.6 percent, to $117.10.

CONSUMER COMPANIES: Hanesbrands climbed as investors were pleased with its forecasts for the fourth quarter. The underwear, T-shirt and sock maker added $2.22, or 9.3 percent, to $26.02. Royal Caribbean Cruises, which has fallen by almost a third this year, traded higher after its third-quarter profit came in ahead of estimates. The stock gained $6.20, or 9.1 percent, to $74.26. Chocolate maker Hershey also disclosed strong results as it launched new products, and its stock rose $7.37, or 7.7 percent, to $102.88.

ENERGY: U.S. crude fell $1.02, or 2.1 percent, to $48.70 a barrel in New York. That was its lowest price this month. Brent crude, the international standard, lost 76 cents, or 1.5 percent, to $49.71 a barrel in London.

BONDS: Bond prices edged higher. The yield on the 10-year Treasury note fell to 1.84 percent from 1.85 percent.

CURRENCIES: The dollar slipped to 104.88 yen from 105.29 yen. The euro rose to $1.0969 from $1.0898.

METALS: Metals turned higher and the price of gold picked up $7.30 to $1,276.80 an ounce. Silver rose 16 cents to $17.80 an ounce. Copper added 3 cents to $2.19 a pound.

OTHER ENERGY TRADING: Wholesale gasoline lost 2 cents to $1.47 a gallon. Heating oil gave up 3 cents to $1.54 a gallon and natural gas rose 4 cents to $3.11 per 1,000 cubic feet.

OVERSEAS: France’s CAC 40 rose 0.3 percent and the FTSE 100 in Britain picked up 0.1 percent. Germany’s DAX edged down 0.2 percent. Japan’s benchmark Nikkei 225 gained 0.6 percent and South Korea’s Kospi fell 0.2 percent. In Hong Kong the Hang Seng lost 0.8 percent.

___

AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay

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