A pedestrian walks past an electronic stock board displaying a mid-day figure of the Nikkei 225 Stock Average, center top, outside a securities firm in Tokyo, Japan. (Photographer: Tomohiro Ohsumi/Bloomberg)

Stocks Edge Lower as Treasuries, Greenback Fall: Markets Wrap

(Bloomberg) -- U.S. stocks edged lower as investors assessed the latest batch of corporate earnings and simmering geopolitical tensions ahead of the weekend. The dollar weakened and oil rose.

The S&P 500 Index ended the week virtually unchanged, holding near its average price of the past 200 days. The measure earlier powered to a gain of more than 1 percent on the strength of corporate results, but gave back the advance as investors grew concerned tariffs will increasingly dent profit margins. Honeywell warned as much during its conference call, dragging down shares in Boeing and Caterpillar.

The gyrations capped a wild week of trading that saw stocks put in their biggest rally since March only to tumble almost 1.5 percent two days later. Tech shares remained under pressure, with the Nasdaq indexes falling Friday for their third straight weekly retreat.

A renewed rise in Treasury yields -- the 10-year rate targeted 3.2 percent again -- added to pressure on equities, though bank shares benefited. The dollar slumped versus major peers. Oil gave back some gains after Federal Reserve President Raphael Bostic said tensions between Saudi Arabia and the U.S. pose a geopolitical risk.

Stocks Edge Lower as Treasuries, Greenback Fall: Markets Wrap

“It seems like it’s another day of uncertainty, digestion,” said Christian Magoon, chief executive officer of Amplify ETFs. “The two macro forces pushing on the market are the interest rates and how aggressive the Fed is going to be and whether that aggression could take the economy into a recession. The other uncertainty is around what will happen with tariffs. It’s a buyers strike right now.”

Markets rode a roller coaster this week as investors parsed a mixed bag of earnings to see whether the ongoing trade war and higher rates are eating away at profits. Reports that President Xi Jinping and President Donald Trump would meet in November eased concerns early Friday, but they were soon ratcheted higher on worries about the potential impending impact of Chinese tariffs. And still hanging in the background are tensions surrounding the disappearance of a prominent Saudi journalist, Brexit and the Italian budget drama.

Listen to Bloomberg reporters discuss the week in markets

Elsewhere, Italian bonds weighed on European debt amid the country’s debt crisis, while a slowdown in Chinese growth added to concerns that the world economy is not on firm footing. The pound rose after U.K. Prime Minister Theresa May was said to be ready to ditch a key demand in Brexit talks.

Terminal readers can read more in our Markets Live blog.

These are the main moves in markets:

Stocks

  • The S&P 500 Index fell less than 0.1 percent to 2,767.78 as of 4 p.m. New York time.
  • The Nasdaq Composite Index fell 0.5 percent, while the Nasdaq 100 dropped 0.1 percent.
  • The Stoxx Europe 600 Index fell 0.1 percent.
  • The MSCI Emerging Market Index gained 0.1 percent.


Currencies

  • The Bloomberg Dollar Spot Index fell less than 0.1 percent.
  • The euro climbed 0.4 percent to $1.1502.
  • The Japanese yen declined 0.3 percent to 112.57 per dollar.
  • The MSCI Emerging Markets Currency Index increased 0.1 percent.

Bonds

  • The yield on 10-year Treasuries gained two basis points to 3.19 percent.
  • Germany’s 10-year yield rose four basis points to 0.46 percent.
  • Britain’s 10-year yield added four basis points to 1.576 percent.


Commodities

  • The Bloomberg Commodity Index climbed 0.2 percent.
  • West Texas Intermediate crude gained 0.9 percent to $69.29 a barrel.
  • Gold fell less than 0.1 percent to $1,229.50 an ounce.

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