Banks Lead U.S. Stock Declines as Dollar Weakens, VIX Jumps

(Bloomberg) -- U.S. stocks fell as markets reopened after Monday’s holiday as financial and industrial shares declined and the U.S. dollar had its biggest single-day loss since July.

The S&P 500 Index dropped 0.3 percent to 2,267 at 4 p.m. in New York and the Dow Jones Industrials lost 0.3 percent to 19,827. The CBOE Volatility Index jumped 5.6 percent after reaching its lowest since July 2014 on Friday.

• U.S. dollar weakened as traders considered whether Trump’s comments in an interview with the Wall Street Journal refer to the broad dollar basket or only against the yuan
• Financials led S&P 500 lower, down 2.3% after key earnings and as Trump reflation trade ebbs; utility shares up 1.2% and consumer staples shares add 1.4%
• 10-Year Treasury yield down 7 basis points to 2.325
• VIX climbed 5.8% for biggest one-day gain since Dec. 28
• Tech companies decline 0.4%, led by loss of 4% in Qualcomm as Bloomberg reports U.S. antitrust officials are poised to sue
• Health care stocks down 0.5% after dropping as much as 1.3% in early trading
• Morgan Stanley down 3.8% after paring pre-market gains following 4Q earnings
• Analysts estimate profit at S&P 500 companies rose 4.3 percent in the fourth quarter of 2016, and will jump 12 percent this year
• EARNINGS: 
  • After-market: CSX (CSX), Interactive Brokers (IBKR), United (UAL), Fulton Financial (FULT), Linear Technology (LLTC), Hancock Holding (HBHC), Renasant (RNST), Pinnacle Financial (PNFP), ADTRAN (ADTN)
  • Earnings pre-market Wednesday: US Bancorp (USB), Fastenal (FAST), Commerce Bancshares (CBSH), TD Ameritrade (AMTD), Goldman Sachs (GS), Northern Trust (NTRS), Citigroup (C ), Charles Schwab (SCHW)

For related equity market news:

• Trump Tax Discord Boosts U.S. Retail Stocks as Financials Slump
• Expect a 4%-7% Stock Correction Near Term: Cannacord’s Dwyer
• S&P 500 Starts Earnings Season Nobody Seems Worried About: Chart
• Goldman Warns Over Reversal of S&P 500’s Positive Link to Dollar
• Bet on Financial-Heavy Dow to Beat S&P 500, Says RBC’s Golub

--With assistance from Aleksandra Gjorgievska

To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net.

To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Scott Schnipper