U.S. stocks fell for the week as lower estimates for global growth and escalating violence across Iraq halted a three-week rally that sent benchmark indexes to all-time highs.
Delta Air Lines Inc. (NYSE: DAL) sank 7.1 percent as oil capped its biggest weekly gain this year after the Iraq tension threatened to disrupt supplies.
Newfield Exploration Co. (NYSE: NFX) added 8.5 percent to lead gains among energy producers.
The Standard & Poor’s 500 Index halted a three-day slide on the final day of the week, gaining 0.3 percent, as Intel Corp. (Nasdaq: INTC) rallied the most in three years after raising its sales forecast.
The S&P 500 fell 0.7 percent to 1,936.16 in the five days, its first weekly slide in a month. The Dow Jones industrial average slipped 148.54 points, or 0.9 percent, to 16,775.74. Both gauges had their worst week in two months.
U.S. equities declined as the World Bank lowered its forecast for global growth, citing weaker outlooks for the U.S., China and Russia, while a surge in violence across Iraq raised the prospect of a return to sectarian civil war in OPEC’s second-biggest oil producer.
Investors also considered equity valuations after the S&P 500 closed at an all-time high on June 9. The measure trades at 16.4 times the projected earnings of its members, up from a multiple of 14.8 at the start of February. The Dow closed at a record on June 10.
Economic reports for the week showed U.S. retail sales rose a smaller-than-estimated 0.3 percent in May while applications for unemployment benefits climbed.
Geopolitical concerns shifted from the crisis in Ukraine to the worsening situation in Iraq.
West Texas Intermediate crude climbed 4.1 percent in the period.
The rally in oil sent equities in Europe lower for the first time in nine weeks. The Stoxx Europe 600 Index slipped 0.1 percent as travel-related stocks posted the biggest drop of 19 industries in the gauge.
An index of oil-related stocks rose the most.
Better-than-estimated data from China on retail sales and lending overshadowed the World Bank’s lower growth forecast and added to evidence that Premier Li Keqiang’s support measures are stabilizing the economy.
U.S. airlines led losses in the S&P 500, with Delta sinking 7.1 percent to $39.24 and Southwest Airlines Co. (NYSE: LUV) dropping 4.7 percent to $26.30.
Jet fuel and labor are airlines’ largest expenses. The price of jet fuel had climbed just 1.2 percent in the 12 months ended June 6. A 2.9 percent jump on June 12 was the most since October 2012.
Boeing Co. (NYSE: BA) fell 4.3 percent to $132.29 after U.S. House Majority Leader Eric Cantor was defeated in a primary election, raising the prospect that congressional reauthorization of low-cost lending that benefits the plane maker may be blocked.
Tyson Foods Inc. (NYSE: TSN) sank 12 percent to $35.43. The largest U.S. meat company raised its offer for Hillshire Brands Co. (NYSE: HSH) to about $7.7 billion, outbidding Pilgrim’s Pride Corp. (Nasdaq: PPC) for the maker of Jimmy Dean sausages and Ball Park hot dogs.
Hillshire rose 4.9 percent to $61.82, while Pilgrim’s Pride dropped 7.1 percent to $24.41.
Priceline Group Inc. (Nasdaq: PCLN) slid 3.9 percent to $1,189.30 after agreeing to buy OpenTable Inc. (Nasdaq: OPEN) for $2.6 billion in cash. The deal will add restaurant booking to an online business already spanning flights, hotels and cars. OpenTable soared 48 percent to $104.48, a three-year high.
Newfield Exploration (NYSE: NFX) jumped 8.5 percent to $40.45 for a seventh weekly gain and a two-year high, as energy was the only industry of 10 in the S&P 500 to advance in the week.
Intel surged 6 percent to $29.87. The world’s largest semiconductor maker raised its second-quarter revenue forecast and said its annual sales will increase for the first time since 2011, buoyed by improving business demand for personal computers.
Family Dollar Stores Inc. (NYSE: FDO) jumped 10 percent to $66.66. Billionaire Carl Icahn has amassed a 9.4 percent stake in the discount retailer and may push for operating changes and ask the company to explore strategic alternatives, according to a regulatory filing.