Stocks Drop on Bank Margins; Crops Lead Commodities Lower

U.S. stocks erased an early rally as Wells Fargo & Co.’s shrinking profit margin and weakness in European markets overshadowed a jump in consumer confidence to the highest level since the recession started. Commodities sank and the euro trimmed an early gain.

The Standard & Poor’s 500 Index slipped 0.3 percent to 1,428.59 at 4 p.m. in New York, after rising as much as 0.4 percent, and the Stoxx Europe 600 Index lost 0.5 percent. Ten-year Treasury yields fell one basis point to 1.66 percent. Industrial metals and crops led commodities lower. The euro was up 0.2 percent at $1.2955 after rising as much as 0.5 percent, while South Africa’s rand erased gains and tumbled 0.8 percent as the nation’s credit rating was cut to BBB at S&P.