US STOCKS-Wall Street dips on weak earnings, strong dollar

  • Reuters
  • Stock Market News
US STOCKS-Wall Street dips on weak earnings, strong dollar
Credit: © Reuters.

* EU readies new trade retaliation list before meeting Trump

* Strong dollar hits metal prices, could weigh on results of MNCs

* BNY Mellon, Travelers fall after results, drag on financials

* Comcast gains on dropping Fox bid; Fox down, Disney up

* Indexes drop: Dow 0.31 pct, S&P 0.28 pct, Nasdaq 0.18 pct (Adds comment, details; updates prices)

By Amy Caren Daniel

July 19 (Reuters) - U.S. stocks fell on Thursday after a slew of weak quarterly reports dampened hopes of a robust earnings season, with a strengthening dollar and trade tensions also weighing on.

The dollar hit a one-year high on Thursday, boosted by the Federal Reserve's bullish view of the U.S. economy. But the gains in the greenback dragged on metal prices and could hurt companies that get a chunk of their revenue from overseas.

Earlier this week, Netflix NFLX.O said the strong dollar impacted its results and U.S. multinationals are starting to reevaluate their currency hedging strategies. most people's minds is the strength of the dollar and it has been pushing new highs over the past 24 hours," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

Bank of New York Mellon (NYSE: BK ) BK.N fell 6.13 percent after saying the loss of two clients will continue to hurt results, while insurer Travelers TRV.N dropped 3.3 percent after missing profit estimates due to storm-related losses. financial sector .SPSY fell 0.96 percent, the most among the 11 S&P sectors. The materials group .SPLRCM followed with a 0.90 percent drop as metal prices fell.

Trade tensions loomed over the markets, with the European Union saying it was preparing a list of imports to hit if the United States imposes tariffs on EU cars. group representing major automakers said U.S. tariffs on cars and car parts could raise vehicle prices by $83 billion. Ford F.N fell 0.5 percent and General Motors (NYSE: GM ) GM.N skid 1 percent.

At 11:33 a.m. EDT the Dow Jones Industrial Average .DJI was down 78.43 points, or 0.31 percent, at 25,120.86, the S&P 500 .SPX was down 7.89 points, or 0.28 percent, at 2,807.73 and the Nasdaq Composite .IXIC was down 13.85 points, or 0.18 percent, at 7,840.59.

Still, advancing issues outnumbered decliners by a 1.25-to-1 ratio on the NYSE and a 1.24-to-1 ratio on the Nasdaq.

Traders are looking at 2,800 point-mark on the S&P as a break-out level, Antonelli said .

Market optimism was also dented by disappointing earnings reports from eBay EBAY.O , slumping 8.2 percent, Phillip Morris PM.N , falling 4.5 percent and American Express (NYSE: AXP ) AXP.N , down 2 percent. the bright spots was IBM (NYSE: IBM ) IBM.N , which gained 3.4 percent, after its results topped estimates. CMCSA.O gained 3 percent after dropping its pursuit of a group of media assets owned by Twenty-First Century Fox FOXA.O , which fell 1.6 percent. DIS.N , which has agreed on a deal to buy the Fox assets, rose 3.2 percent.

The S&P index recorded 17 new 52-week highs and two new lows, while the Nasdaq recorded 74 new highs and 24 new lows.

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