Wall Street dropping back on Financials and Caterpilla raide
Wall Street lost its edge on Thursday and snapped the consecutive streak of all time highs.
Financial stocks weighed heavily along with Caterpillar with news that federal investigators raided their corporate head-quarters for tax related documents.
The Dow was on course for a break below the 21,000 mile-stone level gained at the start of this month. The theme yet again was a strong dollar though along with rising yields. this came on the heels of more hawkish Fed speak and the market subsequently pricing in a Fed hike as soon as this month. The US dollar index was 0.4% higher ahead of the close while interest rates in the US 10yr treasury yields climbed from 2.45% to 2.48% and shorter term 2yr yields jumped from 1.28% to 1.33% closing at 1.31%
The Dow Jones Industrial Average dropped 112.58 points, or 0.5%, to close at 21,002.97 while the S&P 500 index finished lower by 14.04 points, or 0.6%, at 2,381.92. The Nasdaq Composite index finished lower by 42.81 points, or 0.7%, to close at 5,861.22.
Forex today: even more upside in the dollar and yields
Main topics in U.S. session:
- NZD/USD: fundamentals don't tally with technicals
- GBP/USD: sell minor rallies - Scotiabank
- AUD/USD intermarket: DXY and lower commodities to weigh on Aussie?
- US dollar strength could play catch up with widening yield spreads - BTMU
- Brexit: Despite defeat, May set to trigger Article 50 before end of March - Danske Bank
- Canada: GDP growth in Q4 expected at 1.8% q/q annualized – RBC CM
- UK PM spokesman: PM has been clear that the "Brexit Bill" should be passed without amendment