U.S. Stocks Slip, Dollar Mixed as Gold Advances: Markets Wrap

Updated on
  • Equities mixed in holiday trading; Treasury market closed
  • Turkey’s lira plunges as U.S. tension escalates; gold gains

Turkish Lira Plunges to a Record Low

U.S. stocks retreated in light trading, while the dollar held in a tight range as investors assessed the latest political developments in Washington before the start of earnings season. Turkey’s lira tumbled amid tensions with America.

The S&P 500 Index faded in afternoon trading that was 18 percent below the 30-day average at this time of day, with General Electric Co.’s biggest loss since June 2106 creating the biggest drag. Treasury markets were closed for the Columbus Day holiday. The Stoxx Europe 600 Index rose. Gold and West Texas crude oil advanced. The lira plunged to a record low against a basket of currencies.

"Turkey is a bit of an outlier" among emerging markets, BlackRock’s Russ Koesterich tells Bloomberg Television.

(Source: Bloomberg)

Investors may refrain from large bets Monday without any direction from the bond market, while the minutes from the Federal Reserve’s last meeting are due Wednesday and JPMorgan Chase & Co. kicks off earnings season Thursday. In Washington, a top Republican senator sparred verbally with President Donald Trump, raising some concern that planned tax reform may be stalled.

“The overall move has been slow but certainly steady, and the real move has come in the bond market,” Matt Maley, an equity strategist at Miller Tabak & Co., wrote in note Monday. “Since the bond market is closed for Columbus Day, it would seem to us that today will be a very quiet one in the stock market.”

Terminal subscribers can read more in our Markets Live blog.

What’s coming up this week:

  • Minutes from the most recent Federal Reserve meeting are due Wednesday.
  • The International Monetary Fund and World Bank hold their annual fall meetings this week.
  • Earnings season begins for major U.S. banks, led by JPMorgan, Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. Also reporting will be BlackRock Inc., Domino’s Pizza Inc., Samsung Electronics Co., German container company Gerresheimer AG, U.K. grocery wholesaler Booker Group Plc, and Sky Plc.
  • The active Atlantic hurricane season will probably figure prominently in U.S. data on retail sales and consumer prices.
  • Michel Barnier, the European Union’s chief Brexit negotiator, and his U.K. counterpart David Davis begin the fifth round of talks on the U.K.’s departure from the EU.

Here are the main moves in markets:

Stocks

  • The S&P 500 Index fell 0.2 percent to 2,544.61 at 4 p.m. in New York.
  • The Stoxx Europe 600 Index increased 0.2 percent.
  • The MSCI All-Country World Index fell less than 0.05 percent.
  • Spain’s IBEX Index rose 0.5 percent.
  • The MSCI Emerging Market Index declined 0.3 percent.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1 percent.
  • The euro climbed 0.2 percent to $1.1749.
  • The Turkish lira fell 2.9 percent.


Bonds

  • Spain’s 10-year yield dipped three basis points to 1.669 percent, the lowest in more than a week.
  • Germany’s 10-year yield fell two basis points to 0.44 percent, the lowest in a week.
  • Britain’s 10-year yield fell less than one basis point to 1.357 percent.


Commodities

  • West Texas Intermediate crude rose 29 cents to settle at $49.58 a barrel.
  • Gold futures added 1 percent to $1,287.60 an ounce.

— With assistance by Dani Burger, and Cormac Mullen

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