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TEHRAN, October 23 - U.S. stocks closed lower after choppy trade on Monday, as some investors showed signs of earnings season nerves, while political worries in Europe led the dollar to strengthen against the euro and sterling.
TEHRAN, Young Journalists Club (YJC) -U.S. stocks closed lower after choppy trade on Monday, as some investors showed signs of earnings season nerves, while political worries in Europe led the dollar to strengthen against the euro and sterling.
The euro continued its slide on uncertainty over Italy’s budget and the British pound fell on news that Brexit negotiations with the European Union over Northern Ireland remained in deadlock.
The U.S. Treasury yield curve was the flattest in more than two weeks, while two-year note yields hit their highest level in a decade. Gains in longer-dated notes were limited due to worries about rising inflation pressures and further U.S. Federal Reserve rate hikes.
Fixed income trading appeared to weigh on U.S financial companies, making the sector the biggest drag on the S&P 500. A flat yield curve tends to hurt bank profits.
The third-quarter earnings season and U.S. midterm elections were also dampening equity investor enthusiasm, along with the rising dollar, according to money managers.
“We’ve seen decent results but not universally and there are some negative issues companies have talked about,” said Tim Ghriskey, Chief Investment Strategist at Inverness Counsel in New York.
Investors should expect more volatility at least until U.S. congressional elections on Nov. 6, Ghriskey said.
“People are looking at the negatives and saying that it’s a situation where there are more headwinds. At least until the midterms, it’s going to be difficult to make any significant progress on the upside. The drift will be lower,” said Alan Lancz, president, Alan B. Lancz & Associates Inc., an investment advisory firm in Toledo, Ohio.
The Dow Jones Industrial Average fell 126.93 points, or 0.5 percent, to 25,317.41, the S&P 500 lost 11.9 points, or 0.43 percent, to 2,755.88 and the Nasdaq Composite added 19.60 points, or 0.26 percent, to 7,468.63.
Source: Reuters
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