U.S. Stocks Fall With Emerging Markets on Russia Tensions
By Stephen Kirkland and Joseph Ciolli Apr 25, 2014 2:31 PM ET
U.S. stocks declined and Treasuries rose as tensions increased over Russia and results from Amazon.com Inc. to Visa Inc. (V) disappointed investors. Emerging-market equities slumped with the ruble and oil slid.
The Nasdaq Composite Index retreated 1.8 percent at 2:29 p.m. in New York as Amazon.com tumbled the most since January. The Standard & Poor’s 500 Index dropped 0.9 percent, while the yield on 30-year Treasuries reached the lowest level in nine months. The MSCI Emerging Markets Index lost 1.2 percent. Russia’s Micex Index fell a fifth day and the ruble weakened 0.8 percent versus the dollar. The Stoxx Europe 600 Index declined 0.8 percent. West Texas Intermediate crude dropped 1.3 percent and the yen strengthened against all 16 major peers.
The Group of Seven nations are preparing new measures against Russia, German Chancellor Angela Merkel said, after the U.S. accused Russia of trying to impose its will at “the barrel of a gun and force of a mob.” S&P cut Russia to its lowest investment grade, saying further downgrades are possible if economic growth deteriorates and the Ukraine conflict sparks wider sanctions. Amazon.com dropped after predicting an operating loss in the current quarter and Ford Motor Co. slipped after posting earnings that trailed analysts’ estimates.
“Russian troops are massing up at the Ukrainian border, which is enough to make people nervous about anybody with business activities in Europe,” Tom Stringfellow, president and chief investment officer of San Antonio-based Frost Investment Advisors LLC, which manages about $10 billion, said by phone. “The great earnings surprises from some of the big tech stocks haven’t quite been enough to bring down the wall of worry. We’ve become sensitive to having too many days of gains, and eventually there has to be a move down.”
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http://www.bloomberg.com/news/2014-04-24/yen-gains-sink-nikkei-futures-as-earnings-boost-s-p-500.html
