Stocks slip as interest rates creep higher

Associated Press
FILE - In this Wednesday, July 31, 2013, file photo, trader Michael Urkonis works on the floor of the New York Stock Exchange. Hopes over the European economy coupled with a strong bounce-back in Japan's Nikkei stock index shored up markets Tuesday, ahead of key U.S. retail sales data that could have a bearing on when the Federal Reserve starts to rein in its monetary stimulus. (AP Photo/Richard Drew, File)
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FILE - In this Wednesday, July 31, 2013, file photo, trader Michael Urkonis works on the floor of the New York Stock Exchange. Hopes over the European economy coupled with a strong bounce-back in Japan's Nikkei stock index shored up markets Tuesday, ahead of key U.S. retail sales data that could have a bearing on when the Federal Reserve starts to rein in its monetary stimulus. (AP Photo/Richard Drew, File)

NEW YORK (AP) — The stock market is edging lower after long-term interest rates rose close to their highest level in two years.

Stocks that are most sensitive to changes in interest rates fell the most. Homebuilders fell on concern that mortgage rates would rise. Stocks that pay rich dividends including utilities and phone companies also fell.

Airline stocks slumped after the Justice Department challenged the proposed merger between US Airways Group and American Airlines' parent company, AMR.

The Dow Jones industrial average was down 27 points, or 0.2 percent, to 15,393 at noon Tuesday.

The Standard & Poor's 500 index was down a point, or 0.1 percent, at 1,687.

The Nasdaq composite was down four points, or 0.1 percent, to 3,665.

KFC owner Yum Brands dropped after reporting weak sales in China.

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