Reuters: US Dollar Report: GLOBAL MARKETS-Wall St down as Macy's disappoints, Europe up on data

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

GLOBAL MARKETS-Wall St down as Macy's disappoints, Europe up on data Aug 14th 2013, 18:48 Wed Aug 14, 2013 2:48pm EDT * Macy's results hit U.S. stocks, but Apple shares hit $500 * European shares edge toward 2013 high after stronger data * Copper gains on optimism about European, Chinese growth By Wanfeng Zhou NEW YORK, Aug 14 (Reuters) - Wall Street stocks fell on Wednesday, dragged down by weak earnings from department store Macy's, but European shares rose to 2-1/2-month highs after data showed the euro zone emerged from recession in the second quarter. The euro slipped despite the encouraging euro zone economic data as higher U.S. bond yields buoyed the dollar, while sterling jumped after robust U.K. jobs data cast doubt on the Bank of England's pledge to keep interest rates low. Macy's reported a sales and profit miss in the second quarter and cut its full-year earnings forecast. Macy's stock fell 3.5 percent to $46.79 and was the largest percentage decliner on the S&P 500 stock index. The S&P's consumer discretionary sector was down 1.1 percent. European stock markets have outperformed their U.S. counterparts lately as signs grew that the region's economy has finally turned the corner, but they are still lagging U.S. shares, which have hit record highs, for the year to date. "There is some talk of global money arriving in Europe as Europe claws its way out of recession," said Rupert Baker, a European equity sales executive at Mirabaud Securities. In the United States, uncertainty about when the Federal Reserve will start scaling back its stimulus program has kept Wall Street under pressure. Recent economic indicators have presented a mixed view of growth and inflation, complicating predictions of the Fed's next policy action. "The market is confused because the data we're seeing is in both camps - tapering and non-tapering - so investors are holding back on big moves until September," said Robert Francello, head of equity trading for Apex Capital in San Francisco. The Dow Jones industrial average dropped 124.84 points, or 0.81 percent, to 15,326.17. The Standard & Poor's 500 Index fell 8.84 points, or 0.52 percent, to 1,685.32. The Nasdaq Composite Index lost 12.97 points, or 0.35 percent, to 3,671.47. Apple Inc was one of the biggest gainers of the day, hitting $500 for the first time since January, a day after investor Carl Icahn tweeted that he had built a "large position" in the tech company. The FTSEurofirst 300 rose 0.3 percent to close at 1,240.30, within sight of its 2013 peak at 1,258.09. France's CAC-40 index outperformed other major European markets with a 0.5 percent rise that put the CAC at a two-year high. The FTSEurofirst 300 index is up around 9 percent since the start of 2013, while the U.S. Dow and S&P 500 indexes have both risen nearly 20 percent. The economies of Germany and France grew more quickly than expected in the second quarter, faster than a widely heralded expansion in the United States and pulling the euro zone out of a 1-1/2-year recession, data showed on Wednesday. MSCI's all-country world index, a measure of 45 equity markets around the world, was little changed at 377.54. The euro traded slightly lower at $1.3257, while the dollar edged 0.1 percent lower at 98.11 yen. Sterling hit a high of $1.5548 after data showed a sharp drop in British jobless benefit claims in July and minutes from the Bank of England's last meeting revealed one policymaker had voted against a historic move to tie future interest rates to unemployment. It was last up 0.4 percent at $1.5511. The minutes and stronger labor market data prompted money market traders to price in a greater chance of a rate hike in the bank's base rate in two years - a year earlier than the BoE has signaled. Yields on benchmark U.S. 10-year Treasuries, which have been supporting the U.S. currency, edged down to around 2.7117 percent, just off Tuesday's near two-year peak of 2.72 percent . Investors have largely positioned for the Fed to start tapering its $85 billion per month of bond purchases soon, but are looking for more data to support that view. Talk about the Fed's next step escalated on Tuesday when Atlanta Fed President Dennis Lockhart said it was too early to detail plans for reducing bond buying, while at the same time he did not rule out the possibility of it starting next month. Copper prices rose as optimism about the euro zone economy and top metals consumer China boosted confidence about demand for industrial materials. Three-month copper on the London Metal Exchange, untraded at the close, was last bid at $7,316 a tonne, up from a close of $7,275 on Tuesday, when it also hit its highest in more than nine weeks at $7,354.75. Spot gold rose to $1,333 an ounce from around $1,320. Brent rose 44 cents to $110.26 a barrel, while U.S. oil gained 5 cents to $106.88. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions