U.S. stocks dip as traders assess policy path, earnings - BNN Bloomberg

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European stocks and U.S. equity futures retreated while bond yields rose as traders assessed the latest corporate earnings reports against the backdrop of yet another hot inflation print from one of the world's major economies.

The Stoxx Europe 600 index slipped about 0.3 per cent, with the technology sector leading the decline. ASML Holding NV dropped as much as 4.8 per cent after the Dutch chip maker's earnings report raised concerns about its demand outlook. Contracts on the rates-sensitive Nasdaq 100 fell about 0.7 per cent, while those on the S&P 500 were down 0.5 per cent ahead of the next batch of earnings reports by U.S. banks.

Amid continuing hawkish talk from policy makers, investors are monitoring earnings reports for signs of how central banks' attempts to stifle inflation are affecting economic activity. Results from major U.S. lenders so far have been mixed: Goldman Sachs Group Inc. failed to capitalize on Wall Street's fixed-income boom, contributing to firmwide revenue that trailed estimates. Bank of America Corp. beat profit expectations. Morgan Stanley is due to report later today.

The benchmark currently sits between 4.75 per cent and 5 per cent. Swaps are pricing in a quarter-point hike by the Fed in May, with rate cuts starting to take place in July.

 

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