U.S. stocks slip on earnings, dollar off highs
- World stocks hold near 16-month highs after strong week
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Oil edges higher on optimism over non-OPEC output cuts
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Sibanye Gold (SBGL) to Acquire Stillwater Mining Company (SWC) in $2.2B Deal
People walk past an electronic board displaying various Asian countries' stock price index and world major index outside a brokerage in Tokyo, Japan, August 21, 2015. REUTERS/Issei Kato/File Photo
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By Hilary Russ
NEW YORK (Reuters) - U.S. stocks fell on disappointing earnings reports on Tuesday, while the U.S. dollar slipped from multi-month highs after Bank of England Governor Mark Carney cast doubt on expectations for more monetary stimulus.
Oil prices fell more than 1 percent, with U.S. crude breaking below $50 per barrel for a second straight day, ahead of weekly data that could show a build in inventories.
On Wall Street, nine of the eleven sectors in the benchmark S&P 500 stock index closed lower, with housing and consumer products companies among those failing to live up to forecasts on third-quarter earnings.
"We had a rally (Monday) and haven't been able to sustain it, due to weaker-than-expected numbers from some names," said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois. He called the day's earnings report a "mixed bag" for stocks.
The Dow Jones industrial average <.DJI> fell 53.76 points, or 0.3 percent, to 18,169.27, the S&P 500 <.SPX> lost 8.17 points, or 0.38 percent, to 2,143.16 and the Nasdaq Composite <.IXIC> dropped 26.43 points, or 0.5 percent, to 5,283.40.
The dollar was a hair lower against a basket of major currencies <.DXY> after touching an eight-month high.
Growing expectations that the U.S. Federal Reserve would raise interest rates in December had boosted the dollar to its highest level in more than seven months against the euro and about three months against the yen.
When BoE policymakers meet next week to consider whether to cut interest rates, they will "undoubtedly" take sterling's weakness into account, BoE Governor Mark Carney told lawmakers on Tuesday.
"Carney's comments cast doubt on easing from Europe," said Kathy Lien, managing director at BK Asset Management in New York.
In European stocks, mining companies <.SXPP> rose 3.2 percent, lifted in part by Anglo American (NASDAQ: AAL), up 4.55 percent after its production update. Anglo is the top-performing stock on Europe's STOXX 600 <.STOXX> this year.
The U.K.'s FTSE 100 Index <.FTSE> extended gains, closing up 0.45 percent.
Germany's DAX <.GDAXI> turned slightly lower, ending down 0.04 percent, after hitting its highest level of the year. The closely-watched Ifo survey beat expectations, a day after purchasing manager numbers had done the same.
Metal prices surged, with zinc
Other commodity prices slipped, though, as many are priced in U.S. dollars. U.S. crude oil futures
(Additional reporting by Sam Forgione and Rodrigo Campos in New York; Editing by Nick Zieminski and Dan Grebler)
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