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U.S. Stocks Sink on Tech Rout; Treasuries Advance: Markets Wrap

Brendan Walsh and Jeremy Herron

(Bloomberg) -- U.S. stocks fell amid a fresh round of selling in technology shares sparked by weak earnings, while crude capped its longest losing streak ever on concern over a supply glut.

Large-cap tech names dragged the Nasdaq 100 to a loss of more than 1.5 percent and trimmed a weekly advance for the S&P 500. Chipmaker Skyworks plunged after results signaled a slowdown in smartphone demand. West Texas Intermediate crude capped a 10th straight loss, sending small-cap energy shares tumbling more than 2.5 percent. Walt Disney’s strong earnings minimized damage in the Dow Jones Industrial Average.

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Mexican stocks erased a second day of losses after the nation’s president-elect said he won’t change any banking laws. The peso turned higher. Europe’s main equity gauge dropped after disappointing forecasts from Richemont and Thyssenkrupp AG. Treasury yields edged lower after the Federal Reserve on Thursday reiterated its plan for “further gradual” rate increases.

Investors have their eyes open to any signs the economic cycle is peaking. While lower oil prices seem mostly driven by a surge in supply, not a drop in demand, there are more worrisome signs coming out of China. Data there show softer producer-price gains, weak car sales and a disappointing outlook from a top online travel company, helping to reignite lingering concerns about the health of the world’s second-biggest economy.

Asian financial shares performed particularly poorly following news that Beijing plans to set quotas for banks to pump credit into private companies. The offshore yuan held this week’s drop as there was little sign of an end to the U.S.-China trade war in the wake of the midterm elections.

Elsewhere, the pound weakened amid ongoing speculation over a potential Brexit deal. Emerging-market stocks and currencies slid.

Terminal users can read more in our Markets Live blog.

These are the main moves in markets:

Stocks

The S&P 500 Index fell 0.9 percent as of 4 p.m. in New York. It rose 2.1 percent in the week for a second straight advance.The Nasdaq 100 Index lost 1.7 percent, while the Russell 2000 fell 1.6 percent.The Stoxx Europe 600 Index dipped 0.4 percent.The Nikkei-225 Stock Average declined 1.1 percent.The MSCI Emerging Market Index sank 0.6 percent.

Currencies

The Bloomberg Dollar Spot Index increased 0.2 percent.The euro declined 0.3 percent to $1.1333.The Mexican peso rose 0.3 percent to 20.132 per dollar.The Japanese yen rose 0.2 percent to 113.82 per dollar.

Bonds

The yield on 10-year Treasuries declined five basis points to 3.19 percent.The two-year rate lost four basis points to 2.93 percent.Germany’s 10-year yield dipped five basis points to 0.41 percent.Italy’s 10-year yields was up one basis point to 3.40 percent.

Commodities

West Texas Intermediate crude dipped 0.8 percent to settle at $60.19 a barrel. It is now lower for the year.Gold futures sank 1.3 percent to $1,209.50 an ounce, hitting the weakest in a month.

To contact the reporters on this story: Brendan Walsh in Austin at bwalsh8@bloomberg.net;Jeremy Herron in New York at jherron8@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh

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