Stocks Drop From Records Due to Underwhelming Profits – Europe Market Wrap

Stocks moved slightly at the close of a record-setting week following disappointing reports from Intel and Puma. The Dollar advanced.

S&P 500 futures were barely changed, while Europe’s Stoxx 600 index fell 0.3%. Intel dropped more than 5% in premarket trading, while Puma fell up to 19% after cutting its profit prediction. The MSCI All Country World Index ended a seven-day streak of gains.

Traders have paused a rally that has propelled the S&P 500 to its tenth record high in 19 days, fuelled by optimism about trade deals and corporate earnings. Next week is the busiest of the earnings season, and investors are looking to the Fed’s interest-rate meeting on July 30th, as data decreased the case for more cuts.

Ten-year US Treasury rates jumped 2 bps to 4.42%, while an index of Dollar strength increased 0.3%.

Trade talks will be the focus as China and the US seek to extend their tariff truce beyond August 12th. There is also talk that the EU and the US can reach an agreement that would impose a 15% tariff on most products. The US secured a deal with Japan earlier in the week.