Tech shares lead stocks lower; dollar strengthens

Bloomberg

US equities mostly edged lower as shares of slumping energy and technology companies offset gains in financials after Morgan Stanley earnings beat forecasts. European shares advanced after a mixed session in Asia.
The Nasdaq Composite Index dropped from a record high as Google parent Alphabet Inc. faced a $5 billion fine and Twitter was downgraded.
The dollar strengthened as Federal Reserve Chairman Jerome Powell began a second day of testimony before Congress on the US economy after delivering an upbeat assessment, helping spur declines in raw materials prices and emerging-market currencies.
“You’ll have these news headlines and different issues that will rattle some of these stocks, especially given how fast some of them have run,” said Lindsey Bell, an investment strategist at CFRA. “Google today is not moving significantly on the news out of the EU but you’ll see these headlines cause certain stocks, maybe even the sector, to waver a little bit.”
“If the theme remains the same, any weakness from earnings will be met by buyers, with Netflix and banks as examples,” said Dave Lutz, head of ETFs at Jonestrading Institutional Services LLC.
The greenback outperformed most of its major peers, helping push down an index of developing-nation currencies by the most in two weeks. China’s yuan approached its weakest close in almost a year. The pound slumped after UK inflation came in below expectations, while CPI for the euro zone matched forecasts. A Bloomberg commodities gauge was further weighed down by oil futures, which tumbled through a technical support level on rising inventories.
Elsewhere, Bitcoin extended its biggest three-day rally this year, earlier climbing above $7,500.
Earnings season continues, with reports due from companies including: Microsoft, Taiwan Semiconductor Manufacturing and Unilever. The Fed on Wednesday will release its Beige Book economic report, which is based on anecdotal information collected by its 12 regional banks. Euro-zone inflation data for June is expected on Wednesday to show the annual rate inched higher to 2 percent.
The S&P 500 Index fell less than 0.1 percent in New York. The Dow Jones Industrial Average rose 0.1 percent. The Nasdaq Composite Index slumped 0.3 percent from a record high of 7,855.12. The UK’s FTSE 100 Index gained 0.5 percent. The MSCI Emerging Market Index slumped 0.3 percent.
The Stoxx Europe 600 Index rose 0.4 percent.
The Bloomberg Dollar Spot Index rose 0.2 percent, the second consecutive daily gain. The euro slipped 0.1 percent to $1.1647. The British pound dropped 0.5 percent to $1.3047. The Japanese yen gained 0.1 percent to 112.78 per dollar. South Africa’s rand fell 0.2 percent to 13.30 per dollar.
The yield on 10-year Treasuries were little changed at 2.86 percent. Italian 10-year yields rose three basis points to 2.50 percent. Germany’s 10-year yield fell one basis point to 0.34 percent.
West Texas Intermediate crude dropped 0.8 percent to $67.52 a barrel. Gold fell 0.3 percent to $1,224.35 an ounce, the fourth straight daily decline.
The S&P 500 Index fell less than 0.1 percent in New York, while the Nasdaq Composite Index fell 0.3 percent and the Dow Jones Industrial Average rose 0.1 percent. The Stoxx Europe 600 Index increased 0.4 percent to the highest in a month. The MSCI All-Country World Index declined less than 0.05 percent. The MSCI Emerging Market Index decreased 0.3 percent to the lowest in a week. The yield on 10-year Treasuries fell one basis point to 2.85 percent. Germany’s 10-year yield declined two basis points to 0.33 percent.