OPENING BELL:Dollar Rally extends, yields Gain, Bitcoin slips
US stocks end rally
•
Wal-Mart plunges on missed earnings expectations
•
Yields continue to attract funds away from stocks
•
Treasury oversupply threatens second equity selloff
•
Stronger dollar makes US equities more expensive, both for foreign and domestic investors
• Key Events
US stocks ended a six-day rally on Tuesday, selling off on several fundamental events:
1. Wal-Mart (NYSE:WMT) missed fourth-quarter earnings expectations, weighing on averages
2. Rising bond yields pulled fund flows out of equities and
3. A strengthening dollar boosts the cost of US stocks for foreign investors
Bitcoin slipped below $11,000, confirming yesterday’s bearish Shooting Star, which attempted to cross above the downtrend line since December 17, the currency’s all-time high almost at $20,000. The battle now is between bulls drawing the uptrend line since February 6 and the $6,000 since December 17, drawn by bears.
Bitcoin as well as most other mainstream cryptocurrencies have had a tough 2018 so far. Still, not all digital coins have endured the wrath of sellers since the year began; some have been more resilient.
Up Ahead
•
Today the Federal Reserve will release minutes of its January 30-31 meeting, Janet Yellen’s final outing as chair, where officials kept interest rate unchanged.
•
Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the US Monetary Policy Forum in New York City.
•
China's Shanghai Composite reopens on Thursday.
Market Moves
Stocks
•
The STOXX Europe 600 Index declined 0.3 percent as of 8:23 a.m. London time (5:23 EST).
•
Futures on the S&P 500 Index fell 0.1 percent, to the lowest point in a week.
