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:
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
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
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