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Mid-Day Update: Wall Street Retreats on Dollar Weakness, Looming CPI Data


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Weighed down by the lingering weakness in the dollar and ahead of Wednesday's pivotal inflation data, US stocks were trading lower for the first time in three days with the health care and telecom sectors leading decliners. Wall Street perked up briefly on dovish comments from new Fed chairman Jerome Powell, but the move higher quickly faded leaving sellers still in control.

Following Monday's 400+ point rally in the Dow, Asian bourses continued to defy gravity until the yen hit a 5-month high against the dollar, jolting the Nikkei lower, and spilling over into European markets. The negative tone permeated US premarket trading with most sectors in the red despite upbeat quarterly results and slight-pull backs in both Treasury yields and the volatility index.

Wall Street took notice from remarks from Fed chairman Powell who echoed Janet Yellen's position regarding liquidity when he said the Fed will "remain alert to any financial stability risks." Bottom-fishers appeared, but quickly disappeared when the Dow and S&P 500 stalled at their 50-hour moving averages.

European bourses were lower in sympathy with the US with the exception of the UK's FTSE-100 when better-than-expected inflation data underpinned the index before the strength of the pound and weakness across the continent pulled the UK index off its highs.

Crude oil was down $0.31 to $58.98 per barrel. Natural gas was up $0.08 to $2.63 per 1 million BTU. Gold was up $3.60 to $1,330.00 an ounce, while silver was down $0.03 to $16.54 an ounce. Copper was up $0.07 to $3.15 per pound.

Among energy ETFs, the United States Oil Fund was down 0.08% to $11.88 with the United States Natural Gas Fund was up 2.54% to $22.22. Among precious-metal funds, the Market Vectors Gold Miners ETF was up 0.23% to 21.97 while SPDR Gold Shares were up 0.49% to $125.98. The iShares Silver Trust was up 0.42% to $15.63.

Here's where the markets stand at mid-day:

US MARKETS

NYSE Composite Index was down 42.59 points (-0.34%) to 12,517.2

Dow Jones Industrial Index was down 111.33 points (-0.45%) to 24,489.94

S&P 500 was down 4.90 points (-0.28%) to 2,651.28

Nasdaq Composite Index was down 8.95 points (-0.13%) to 6,972.69

GLOBAL SENTIMENT

FTSE 100 was down 9.05 points (-0.13%) to 7,168.01

DAX was down 86.27 points (-0.70%) to 12,196.50

CAC 40 was down 30.82 points (-0.60%) to 5,109.24

Nikkei 225 was down 137.94 points (-0.65%) to 21,244.68

Hang Seng Index was up 379.90 points (+1.29%) to 29,839.53

Shanghai China Composite Index was up 31.47 points (+1.00%) to 3,185.60

NYSE SECTOR INDICES

NYSE Energy Sector Index was down 38.91 points (-0.36%) to 10,722.91

NYSE Financial Sector Index was down 7.68 points (-0.09%) to 8,115.49

NYSE Healthcare Sector Index was down 55.47 points (-0.39%) to 14,130.67

UPSIDE MOVERS

(+) CATB (+58.40%) Duchenne muscular dystrophy candidate slows disease progression

(+) GNC (+27.45%) To receive $300 million investment from China's Harbin Pharmaceutical, reported in-line Q4 earnings, below-consensus revenue

(+) ABC (+8.43%) Reportedly in acquisition talks with Walgreens Boots Alliance ( WBA )

DOWNSIDE MOVERS:

(-) DARE (-39.78%) Prices $10.3 million stock, warrant offering

(-) HMNY (-30.91%) Announced public offering of stock

(-) AFMD (-14.29%) Priced 11.5 million common stock offering at 18% discount to Monday's closing price

(-) PDCO (-6.37%) and HSIC (-7.91%) Sued by FTC for alleged conspiracy for not offering discounts to a customer segment

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks
Referenced Symbols: WBA , CATB , GNC



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