U.S. stocks lose gains after German bomb scare; oil drops
By Lewis Krauskopf
NEW YORK (Reuters) - U.S. shares ceded gains on Tuesday after a soccer match in Germany was called off over fears of a planned bomb attack, while prices of longer-dated U.S. Treasuries rose on demand for low-risk government bonds.
Oil prices fell sharply as worries returned about a glut of supplies, which also undercut equities. The U.S. dollar rose to a seven-month high as inflation data bolstered expectations of an impending interest rate hike.
Just days after the deadly attacks in Paris, a soccer game between Germany and the Netherlands in Hanover, Germany was called off less than two hours before its start due to what authorities called the credible threat of an attack with explosives.
"These situations create uncertainty and in uncertain times everyone goes to cash," said Mohannad Aama, managing director at Beam Capital Management LLC in New York.
The Dow Jones industrial average rose 6.49 points, or 0.04 percent, to 17,489.5, the S&P 500 lost 2.75 points, or 0.13 percent, to 2,050.44 and the Nasdaq Composite added 1.40 points, or 0.03 percent, to 4,986.02.
Earlier in the day, U.S. stocks had registered strong increases, fueled by better-than-expected results from retailers Home Depot and Wal-Mart Stores.
In Europe, the FTSEurofirst 300 index surged 2.6 percent, as Germany's United Internet and Dutch-based Randstad, the world's second-biggest staffing company, posted encouraging results.
MSCI's all-country world index rose 0.6 percent. Continued...