Stocks Pull Back, Dollar Gains Before Fed Results
November 08, 2018 @ 19:27 UTC
U.S. stocks pulled back from near a one-month high as traders awaited the results of a Federal Reserve policy meeting in Washington. Benchmark Treasury yields dipped while the dollar edged higher. Tech shares underperformed after Jack Dorsey’s Square Inc. gave a disappointing earnings forecast and Roku Inc. reported slower growth. European stocks pared an earlier advance spurred by strong earnings from companies including AstraZeneca Plc, though they remained in the green after an upbeat session in Asia. Oil fell for a ninth straight session.
While the resignation of Attorney General Jeff Sessions has threatened to prolong U.S. political uncertainty after Tuesday’s midterm elections, attention may now shift to the Fed meeting. While investors largely anticipate interest rates won’t change, they’ll be looking for any signals on the pace of policy tightening into 2019. Meanwhile, Italian bond yields rose after the European Union warned the nation’s budget deficit will move dangerously close to the bloc’s limit of 3 percent. U.S. filings for unemployment benefits held near an almost five-decade low, indicating a robust job market. China reported a surge in exports and imports for October, months before the next round of tariff hikes in the trade war with the U.S. is set to kick in.
The S&P 500 Index fell 0.3 percent as of 10:29 a.m. in New York; the Nasdaq 100 sank 0.5 percent. The Stoxx Europe 600 Index increased 0.1 percent after gaining as much as 0.8 percent. The Nikkei-225 Stock Average rose 1.8 percent to a two-week high The MSCI Emerging Market Index was little changed. The yield on 10-year Treasuries declined two basis points to 3.21 percent. Germany’s 10-year yield was little changed at 0.45 percent.
Stocks Pull Back, Dollar Gains Before Fed Results, Bloomberg, Nov 08