U.S.
stocks fell, erasing gains as an advance in global equities faltered
before the start of what is forecast to be the worst American earnings
season since the financial crisis. The dollar tumbled to a nine-month
low, boosting commodity prices.
The
Standard & Poor’s 500 Index climbed as much as 0.7 percent before
turning negative in the final half hour of trading. Alcoa Inc. starts
the reporting season after markets close, with S&P 500 profits
forecast to fall 10 percent. Peruvian stocks climbed the most since 2008
after two market-friendly candidates made it to the second-round
presidential vote. Asian and European shares rose earlier, and crude
climbed above $40 a barrel. The Bloomberg Dollar Spot Index extended
losses to the most since June.
Concern
that global growth continues to slow even as central banks step up
efforts to revitalize it has sapped equities of momentum heading into
the first-quarter earnings season. Analysts are projecting profits for
S&P 500 companies will contract 10 percent, compared with calls for
flat earnings growth at the start of the year. European peers will also
begin reporting this week, with profit at companies in Europe’s Stoxx
600 Index forecast to shrink in 2016, reversing earlier calls for
earnings to improve.
The
S&P 500 slipped 0.3 percent 4 p.m. in New York, after falling 1.2
percent last week in the steepest slide since February. Following a
tumultuous start to the year that saw the index tumble as much as 11
percent by mid-February, U.S. equities are now almost unchanged on
optimism that central bank support will be enough to support growth.
Source: Bloomberg
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