U.S. Stocks Retreat as Banks, Oil Sink While Swiss Franc Surges

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U.S. stocks dropped a fifth day as banks fell on earnings and Apple Inc. led technology shares lower, while crude oil resumed its retreat. The franc soared against currencies globally as Switzerland ended its exchange-rate cap, roiling European markets and fueling gains in gold.

The Standard & Poor™s 500 Index was down 0.9 percent by 4 p.m. in New York, capping a five-day drop of 3.4 percent. Bank of America Corp. fell 5.2 percent on sliding trading revenue, as technology stocks fell the most among 10 S&P 500 groups. The Swiss Market Index slid 8.7 percent, while gauges in Germany and France rose at least 2 percent. The franc surged as much as 41 percent versus the euro to a record high. Ten-year Treasury yields sank 13 basis points as gold futures capped their longest rally in more than six months on demand for haven assets. Copper rebounded while U.S. oil declined 4.6 percent.

Citigroup Inc. and Bank of America joined JPMorgan Chase & Co. in reporting the worst combined quarterly trading revenue since 2011, sending a gauge of S&P 500 banks down 2.6 percent. U.S. wholesale prices fell the most three years and Americans unexpectedly filed more unemployment claims last week, data today showed. The Swiss National Bank scrapped the franc™s minimum exchange rate against the euro and deepened negative deposit rates, ending policy designed to shield the economy.

Source: Bloomberg

U.S. Stocks Fall as Banks, Best Buy Slump on Corporate Earnings

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U.S. stocks fell for a fifth straight day as banks and Best Buy Co. slid amid corporate earnings to overshadow gains in mining companies.

Bank of America Corp. and Citigroup Inc. fell at least 2.5 percent as both banks reported a drop in fourth-quarter profit as revenue from fixed-income trading declined. Best Buy tumbled 13 percent as the largest electronics retailer warned that price pressure and sluggish demand may hamper results in the coming year. A gauge of homebuilders plunged the most since July 2013. Newmont Mining Corp. jumped 7.9 percent as copper rebounded.

Equity futures fluctuated earlier in the day after Switzerland™s central bank unexpectedly gave up its minimum exchange rate.

The S&P 500 fell 0.4 percent to 2,003.10 as of 12:02 p.m. in New York. The Dow Jones Industrial Average lost 57.83 points, or 0.3 percent, to 17,369.26. Trading in S&P 500 companies was 32 percent above the 30-day average for this time of the day.

A decline in American retail sales combined with a slump in copper prices weighed on stock markets yesterday, causing the S&P 500 to have its worst start to the year since 2009. The benchmark gauge is down 2.5 percent over the past five days.

Source: Bloomberg

Gold Trades Below 12-Week High; Growth Weighed With U.S. Rates

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Palladium futures slid the most in seven months and silver fell from a four-week high as concerns of a global economic slowdown spurred a rout in metals used in industrial products. Gold touched the highest since October.

The Bloomberg Commodity Index of 22 raw materials slid to a 12-year low today, led by a plunge in copper, after the World Bank cut its forecast for global growth this year. Palladium is mostly used with platinum in catalytic converters that help curb harmful emissions from cars, while silver goes into items ranging from electronics to solar panels.

Palladium futures for March delivery dropped 4.3 percent to settle at $780.65 at 1:07 p.m. on the New York Mercantile Exchange, the biggest drop for a most-active contract since June 12. Platinum futures for April delivery declined 0.7 percent to $1,239 an ounce.

Gold futures for February delivery rose less than 0.1 percent to $1,234.50 an ounce on the Comex, after reaching $1,244.60, the highest since Oct. 23.

Source: Bloomberg

Dollar Falls to 4-Week Low as Retail Sales Drop; Real Rises

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The dollar dropped to its lowest level in four weeks against the yen as retail sales in the U.S. slumped in December by the most in almost a year, pushing back the timeline for the Federal Reserve to raise interest rates.

Japan™s currency rose against most of its major peers as investors sought haven assets on concern steep declines in stocks and commodities signal the global economy is slowing. Government-bond yields tumbled globally. Russia™s ruble dropped for a fourth day. Brazil™s real rose as retail sales topped forecasts. Traders now expect the first Fed interest-rate increase to come in December.

The yen appreciated 0.8 percent to 117 per dollar at 1:18 p.m. New York time, after being at 116.07, the strongest since Dec. 16. It climbed 0.7 percent to 137.88 per euro, extending its advance to a fifth day, the longest streak since June. The euro added 0.1 percent to $1.1784 after it touched $1.1727, the least since December 2005.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, dropped 0.2 percent to 1,141.12. It closed at 1,147.54 on Jan. 8, the highest in data going back to 2004.

Source: Bloomberg