(Corrects to show U.S. Treasury yields fell, not rose, in
headline and first paragraph)
* U.S. housing starts sluggish for second straight month
* World shares on track for second straight decline
* S&P 500 dips back below 3,000 mark
By Chuck Mikolajczak
NEW YORK, July 17 (Reuters) - A gauge of global stocks
declined for a second straight session and U.S. Treasury yields
fell as trade concerns again began to bubble and U.S. earnings
season picked up steam.
On Wall Street, CSX Corp CSX.O was one of the biggest
drags on the S&P 500. The railroad tumbled 10.44% after it
reported quarterly earnings that missed expectations and cut its
full-year revenue view as weakness in its trade-related
intermodal business weighed. The results come after U.S. President Donald Trump renewed
his threat to tax another $325 billion of Chinese goods on
Tuesday, which sent stocks lower. In addition, the U.S. could
also face Chinese sanctions, following a World Trade
Organization ruling on Tuesday, further complicating trade talks
between the two countries. U.S. stocks have eased the past two sessions, after a rally
fueled by expectations the U.S. Federal Reserve will cut rates
at the end of the month sent major averages to record levels, as
earnings season has gotten off to a sluggish start.
"It's hard for this for this market to push up substantially
without some resolution on trade," said Rick Meckler, partner,
Cherry Lane Investments in New Vernon, New Jersey.
Big banks such as Citi C.N , JPMorgan JPM.N and Wells
Fargo WFC.N have recorded drops in net interest margins, a
sign low interest rates are hurting the bottom line.
Bank of America BAC.N shares were up 0.8% after it
reported results on Wednesday and lowered its annual net
interest income guidance. While it is still early in what is expected to be a
lackluster reporting season, the earnings growth rate for the
second quarter now stands at 0.4%, according to Refinitiv data.
Expectations were recently calling for a decline in S&P 500
results.
The Dow Jones Industrial Average .DJI fell 43.83 points,
or 0.16%, to 27,291.8, the S&P 500 .SPX lost 8.42 points, or
0.28%, to 2,995.62 and the Nasdaq Composite .IXIC dropped
14.81 points, or 0.18%, to 8,207.99.
European shares were lower after holding near the unchanged
mark in the earlier portion of trading on a mixed bag of
corporate earnings. The pan-European STOXX 600 index .STOXX lost 0.32% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.24%.
Along with the trade concerns, U.S. Treasury yields moved
higher after data showed weakness in the housing market for a
second straight month.
"The housing starts were a little weaker but the building
permits were definitely significantly weaker," said Justin
Lederer, an interest rates strategist at Cantor Fitzgerald in
New York.
Benchmark 10-year notes US10YT=RR last rose 12/32 in price
to yield 2.0781%, from 2.12% late on Tuesday.
The dollar pulled back from strong gains on Tuesday in the
wake of better-than-expected monthly retail sales data, while
Sterling bounced after touching a 27-month low versus the
greenback as no-deal Brexit concerns mounted.
The dollar index .DXY fell 0.19%, with the euro EUR= up
0.16% to $1.1227. Sterling GBP= was last trading at $1.2432,
up 0.23% on the day.
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Global assets in 2019 http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Housing starts, building permits Image https://tmsnrt.rs/2O9eboC
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