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Microsoft, Alphabet rise in extended trading after results
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Benchmark Treasury yields post steepest drop since March
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Argentina's black market peso hits record low
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Dollar, gold advance
(Updates to U.S. market close)
By Stephen Culp
NEW YORK, April 25 (Reuters) - U.S. stocks sold off,
closing deep in negative territory, and Treasury yields dropped
on Tuesday as disappointing earnings and soft economic data
fueled recession fears, sending investors fleeing for safe
havens.
All three major indexes ended the session down 1% or more,
with the tech-laden Nasdaq plunging 2%, its biggest
single-day slide since March 9.
The S&P 500 and the Dow suffered their largest one-day
percentage drops in a month.
"The type of environment where both gold and dollar gain,
it's very much risk-off high-volatility stuff," said Ross
Mayfield, investment strategy analyst at Baird in Louisville,
Kentucky.
Those losses deepened after a report showed a steeper-than-expected decline in consumer confidence.
Earnings from a wide range of companies, including 3M Co , General Motors Co , PepsiCo Inc , United
Parcel Service Inc and McDonald's Inc , provided
a mixed picture of corporate profit and outlook.
First Republic Bank , under pressure amid regional
bank liquidity concerns, reported a plunge in deposits that
sent its shares, along with the broader KBW regional banking
index , sharply lower.
"The more cyclical and economically sensitive companies have
missed (earnings estimates) or guided down, while consumer
staples have done well," Mayfield said. "And that suggests a
weakening economic environment that maybe wasn't priced into the
market."
Shares of Microsoft Corp and Alphabet Inc rose in extended trading after reporting results.
The Dow Jones Industrial Average fell 344.57 points,
or 1.02%, to 33,530.83, the S&P 500 lost 65.41 points, or
1.58%, to 4,071.63 and the Nasdaq Composite dropped
238.05 points, or 1.98%, to 11,799.16.
European stocks lost ground as investors weighed generally
upbeat earnings against comments by European Central Bank
policymakers regarding the future path of interest rates.
Spanish stocks had their worst day in a month, as Santander
led a slide in European bank shares.
The pan-European STOXX 600 index lost 0.40% and
MSCI's gauge of stocks across the globe shed
1.32%.
Emerging market stocks lost 1.30%. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 1.37%
lower, while Japan's Nikkei rose 0.09%.
Benchmark Treasury yields posted their steepest drop since
March as market participants juggled concerns over the looming
debt ceiling deadline and ongoing worries - exacerbated by First
Republic results - of a liquidity crisis in the regional banking
sector.
Benchmark 10-year notes last rose 32/32 in price
to yield 3.3939%, from 3.515% late on Monday.
The 30-year bond rose 44/32 in price to yield
3.6525%, from 3.729% late on Monday.
The greenback gained ground against a basket of world
currencies and the euro retreated from a near 10-month high as
worries over corporate results and the global economic outlook
deepened.
The dollar index rose 0.51%, with the euro down 0.62% to $1.0973.
The Japanese yen strengthened 0.48% versus the greenback at
133.60 per dollar, while Sterling was last trading at
$1.2407, down 0.60% on the day.
Argentina's peso tumbled to a record low on the popular
black market amid uncertainties surrounding the
country's upcoming election, prompting its economic minister to
pledge "all tools" to counter the currency's dangerous slide.
Crude prices reversed Monday's gain, plunging as economic
worries and the strong dollar offset optimism over China demand
expectations.
U.S. crude dropped 2.25% to settled at $77.07 per
barrel, and Brent settled at $80.77 per barrel, down
2.37% on the day.
Gold prices gained as investors awaited a slew of economic
data later in the week that could sway the Federal Reserve's
policy decisions.
Spot gold added 0.4% to $1,997.63 an ounce.
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World FX rates YTD Global asset performance Asian stock markets Treasury yield spreads ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; Editing by Andrea Ricci, Richard
Chang and Bill Berkrot)
