Stocks Drop With Treasuries; Natural Gas Leads Commodity Losses

Stocks fell, with Europe’s benchmark index slipping from a five-year high and the Standard & Poor’s 500 Index dropping a second day, as investors weighed rising valuations and disappointing earnings forecasts. Treasuries retreated while natural gas led commodity losses.

The S&P 500 lost 0.2 percent to 1,787.87 by 4:40 p.m. in New York, and the Stoxx Europe 600 Index fell 0.7 percent. Ten-year U.S. Treasury yields rose from a one-week low, climbing four basis points to 2.71 percent as German bunds dropped. Natural gas sank 1.7 percent on forecasts for moderating U.S. weather after a cold snap. The Australian dollar and yuan forwards gained as China’s central bank said it will “basically” exit from normal intervention in the market.