U.S. Equities Decline as Bonds Strengthen, Financial Stocks Drop

Mar 20, 2017 4:42 pm ET

(Bloomberg) -- U.S. stocks fell for the fourth time in five sessions as bonds strengthened and shares of financial companies declined. Volume on U.S. exchanges was the lowest of 2017.

The S&P 500 lost 0.2 percent to 2,373.47 at 4 p.m. in New York. The equity benchmark on Friday notched its seventh weekly advance in eight after the Federal Reserve raised rates Wednesday and left its forecast for further increases this year unchanged. The Dow Jones Industrial Average lost less than 0.1 percent to 20,905.86. The Nasdaq Composite briefly touched an intraday record before closing almost unchanged.

  • Financial stocks down 0.9% as 10-year Treasury yield loses four basis points
  • Seven of 11 sectors lower; utility shares down 0.7%; real estate stocks added 0.1%
  • Energy shares down 0.1%; oil lower as an increase in U.S. drilling diminished the prospect of OPEC extending an output-reduction deal
  • VIX little changed at 11.3
  • About 5.8 billion shares traded hands in slowest day of trading this year
  • Investors will assess reports due this week on housing, durable goods and manufacturing for confirmation the economy remains robust; the Fed last week said it intends to keep monetary policy accommodative for some time
  • Traders are now pricing in a 58 percent chance of another rate increase by June, Fed fund futures show
  • ECONOMY:
    • February Chicago Fed national index 0.34 vs est. 0.03
  • S&P 500 EARNINGS:
    • Pre-market Tuesday: Lennar (LEN), General Mills (GIS)
  • Stoxx Europe 600 Index down 0.1%
    • Index climbed last week, boosted by investor relief over the defeat of the populist party in the Dutch elections and the Fed’s decision to raise rates while maintaining its previous forecast for the pace for future increases

For more equity market news:

  • NYSE Arca Says No Stocks Can Currently Be Traded on Its Exchange
  • While Stocks Stay Calm, Volatility Hedging Costs Diverge: Chart
  • Tail-Risk Hedges at Record Costs Signal Possible VIX Jump: Chart
  • Stock Buybacks Are Rarer But Better in Europe Than U.S.: Chart

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