* S&P 500 retreats from record; bank profits disappoint
* U.S. dollar skids but uptrend seen intact
* Oil falls below $107 as supply outlook improves
By Angela Moon
NEW YORK, Jan 16 A measure of global equity
markets edged lower on Thursday, weighed by a decline on Wall
Street following a slew of corporate earnings, while the dollar
fell against rival currencies although the dip was viewed as
On Wall Street, the S&P 500 pulled back from record levels
following a round of disappointing earnings as financial stocks
led the way lower.
After a lackluster start to the new year on concerns stock
valuations may be over-extended, the S&P 500 had rallied
1.6 percent in the prior two sessions to set its first record
high since Dec. 31.
"We've made a nice run and the market is entitled to
consolidate and use sort of a 'wait-and-see' attitude as far as
earnings are concerned," said Terry Morris, senior equity
manager for National Penn Investors Trust Company in Reading,
The MSCI all-country world index was down
0.1 percent at 406.65.
The dollar fell against the euro and the yen, pressured by a
data showing a jump in U.S. continuing jobless claims but losses
were viewed as temporary after two days of gains as the
greenback's uptrend remained intact.
Treasuries prices gained after U.S. inflation data came in
as expected and amid strength in German government debt.
U.S. consumer prices rose by the most in six months in
December but were in line with expectations, after producer
price data on Wednesday surprised some investors by rising more
An unexpected drop in Australian employment boosted demand
for Treasuries overnight. German bunds also rallied.
Treasuries extended their gains after the Philadelphia Fed's
index of business conditions in the U.S. Mid-Atlantic region
fell to its lowest level since April.
Benchmark 10-year Treasuries were last up 10/32,
with the yield at 2.8469 percent.
The dollar fell to 104.28 against the yen, erasing a
rebound that came after the greenback was battered by the
surprisingly weak December U.S. non-farm payroll report at the
end of last week. On Monday, the dollar fell to a four-week low
of 102.85 against the yen.
The Australian dollar, meanwhile, tumbled against the U.S.
unit to its lowest since August 2010 after a surprise fall in
Australian employment raised the possibility of another cut in
interest rates from the Reserve Bank of Australia.
FINANCIALS DRAG WALL ST
Financials were the biggest drag on Wall Street after both
Citigroup Inc and Goldman Sachs reported quarterly
profits hit by lower bond trading revenue, with Goldman's
earnings falling 21 percent and Citigroup's missing
The results followed fairly positive reads on the sector
from JPMorgan Chase & Co, Bank of America and
Wells Fargo & Co.
Goldman's stock slid 2.2 percent to $174.79 and ranked as
one of the Dow's biggest decliners, while Citigroup dropped 4.1
percent to $52.74. The S&P financial sector index fell
0.7 percent, the biggest loser among the S&P 500 sectors.
"This group is very tied to the economy, and it makes it
difficult to argue that we could see a higher GDP ahead, given
these," said Paul Nolte, managing director at Dearborn Partners
"The earnings picture, along with some recent data, suggests
we haven't made it out of the very slow growth rate that we've
The Dow Jones industrial average was down 76.52
points, or 0.46 percent, at 16,405.42. The Standard & Poor's 500
Index was down 4.20 points, or 0.23 percent, at 1,844.18.
The Nasdaq Composite Index was up 0.21 points, or 0.00
percent, at 4,215.09.
European equities edged lower to steady just below a
5-1/2-year high, hurt by a string of losses in the retail sector
after corporate reports but receiving support from miners.
The MSCI world index, which strips out the recently weak
emerging markets, fell 0.2 percent..
In commodities markets, Brent crude oil fell below
$107 a barrel as expectations of more supply from the Middle
East and North Africa outweighed news of a large drop in U.S.
Huge volumes of crude from Iran and Libya have been blocked
by political and civil disputes, but both countries may soon be
able to send more into markets that are already well supplied.