Apr 16, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Stocks Retreat With Dollar as Crops Lead Advance in Commodities

July 16, 2013

July 16 (Bloomberg) -- U.S. stocks fell, halting the longest rally for the Standard & Poor’s 500 Index since January, as Coca-Cola Co. slid after earnings declined and a Federal Reserve official called for cuts to stimulus. Treasuries were little changed, the dollar weakened and crops rallied.

The S&P 500 fell for the first time in nine sessions, losing 0.3 percent to 1,676.7 at 2:18 p.m. in New York after closing at a record yesterday. The Stoxx Europe 600 Index slid 0.7 percent, retreating from a six-week high. The dollar slipped against 15 of 16 major peers, while 10-year Treasury yields were little changed at 2.53 percent. Cocoa, coffee and soybeans helped lead the S&P GSCI Index to a 0.3 percent gain.

U.S. equities extended losses as Fed Bank of Kansas City President Esther George, who has voted against quantitative easing this year, told Fox Business Network that cuts to the central bank’s bond buying are appropriate as the economy picks up steam. Fed Chairman Ben S. Bernanke will speak to Congress tomorrow. In Europe, German investor confidence unexpectedly dropped in July, data from the ZEW Center for European Economic Research showed.

"Hawkish comments from Kansas City Fed President George as to the timing of adjustments to the Fed’s bond purchases are putting modest pressure on the indices," Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in an interview. His firm oversees $290 billion. "Outside of that, earnings are in the early stages and many are waiting for Chairman Bernanke’s testimony to Congress tomorrow for further direction about future Fed policy."

 

Earnings Season

 

Per-share earnings have topped estimates at about 72 percent of the 36 companies in the S&P 500 that have released earnings so far in this reporting season, data compiled by Bloomberg show. Goldman Sachs Group Inc., the world’s most profitable securities firm before the financial crisis, slipped 1.2 percent even after earnings beat estimates.

Coca-Cola lost 1.7 percent after unseasonable weather and slowing economic growth restrained sales around the globe. Johnson & Johnson was little changed after its earnings more than doubled in the second quarter after it sold its stake in Elan Corp. and the company boosted its profit forecast. Cintas Corp. retreated 1.9 percent after the uniform maker forecast earnings for the current fiscal year that were below estimates.

The U.S. earnings season "seems to have started off quite well, and we need the fundamentals to come through to support where prices have gone over the past year," said Keith Poore, head of investment strategy at AMP Capital Investors Ltd. in Wellington, which manages more than $130 billion.

 

Economy Watch

READ MORE
Previous 1 2 3 Next

See Comments

RELATED TOPICS: Power Hour - Business

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions