U.S. stocks fall on oil, earnings; dollar retreats

Mon Apr 25, 2016 4:56pm EDT
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By Dion Rabouin and Richard Leong

NEW YORK (Reuters) - U.S. stock prices fell on Monday due to weaker oil prices and disappointing company results, while the dollar retreated on profit-taking ahead of central bank policy meetings in the United States and Japan later this week.

Reluctance to make big bets in advance of these policy-maker meetings lifted U.S. government yields to four-week peaks and German yields to their highest in five weeks.

"This is hardly a big sell-off but we are having trouble breaking through (to new highs on the Standard & Poor's 500 index) because of a lack of consistently good earnings and economic data," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

A surprise drop in new U.S. home sales in March supported a view of anemic U.S. economic growth, which may keep the U.S. central bank from raising interest rates.

The Fed is widely expected to leave rates unchanged on Wednesday, while the Bank of Japan will announce a policy update on Thursday with some analysts forecasting it may push key rates deeper into negative territory.

"Central banks are still the name of the game," said Jan von Gerich, chief strategist for developed markets at Nordea in Helsinki, Finland.

Additionally, there were signs that a three-month rally in equity and commodity markets is cooling.

The Dow Jones industrial average .DJI fell 26.51 points, or 0.15 percent, to 17,977.24, the S&P 500 .SPX declined 3.79 points, or 0.18 percent, to 2,087.8 and the Nasdaq Composite .IXIC shed 10.44 points, or 0.21 percent, to 4,895.79. [.N]   Continued...

Traders work on the floor of the New York Stock Exchange (NYSE) in lower Manhattanin, New York, U.S., April 20, 2016. REUTERS/Brendan McDermid  -