Crude’s rally took the price of a barrel back above $48 in New York 

A pump jack used to help lift crude oil from a well in South Texas’ Eagle Ford Shale formation stands idle in Dewitt County Texas
  • Retailers slump on Macy’s results as bonds, gold advance
  • Crude sustains momentum in wake of U.S. stockpile data

U.S. stocks fell from records, though losses eased in afternoon trading as crude’s rally took the price of a barrel back above $48 in New York. Treasuries rose with gold as tepid earnings raised new doubts about the strength of the American consumer.

The S&P 500 Index pared the worst of its declines by more than half as health-care and consumer-staples producers rebounded. Retailers remained under pressure as disappointing results from Macy’s Inc. and Kohl’s Corp. added to concerns that the U.S. consumer continues to hold back on spending. Canadian equities fell after Moody’s Investors Service cut ratings on six of the nation’s largest banks amid housing woes. The dollar was little changed, while Treasury yields slipped below 2.40 percent on 10-year notes. Oil rose past $48 a barrel.

The weak sales at department stores underscored rising angst that the biggest part of the U.S. economy isn’t picking up the pace enough to raise growth rates. Investors will get a fresh read on Friday with U.S. retail sales. At the same time, political intrigue continues to roil Washington two days after the president abruptly fired the head of the FBI. The path for interest rates will remain a major focus amid growing bets for a Fed increase in June and talk of tapering by the European Central Bank.

Here are the key events this week:

  • March industrial production data the same day could prompt a revision to the first reading of euro-area GDP growth. Germany’s preliminary growth figure for the first quarter is also Friday.

And here are the main moves:

Stocks

  • The S&P 500 lost 0.2 percent to 2,394.58 at 4 p.m. in New York, retreating from an all-time high.
  • Macy’s fell the most since 2008 and to a six-year low, while Kohl’s slid to a 15-month low. Whole Foods Market Inc. led gains among consumer staples companies.
  • The Russell 2000 Index slumped 0.7 percent for the biggest loss among major indexes.
  • The S&P/TSX Composite Index slid 0.6 percent, with banks in the measure falling 0.8 percent to pace the drop. Valeant Pharmaceuticals International Inc. jumped 8.7 percent, pushing its three-day gain to 41 percent.
  • Emerging-market equities climbed for a fourth session, leaving the MSCI gauge higher by 2.4 percent so far in the week.
  • The Stoxx Europe 600 fell 0.6 percent, after gaining 0.2 percent Wednesday to the highest level since August 2015.

Currencies

  • The euro fell 0.1 percent to $1.0861 even as the Bloomberg Dollar Spot Index slipped 0.1 percent. The yen advanced versus the dollar.
  • The Canadian dollar dropped 0.3 percent after Moody’s Investors Service downgraded six Canadian banks.

Bonds

  • The yield on 10-year Treasury notes fell three basis points to 2.39 percent after rising for the past three sessions.
  • German benchmark yields rose one basis point to 0.43 percent.

Commodities

  • Oil climbed for a second day, leaving the worst of last week’s rout behind for now, as U.S. stockpiles fell and two OPEC members said there’s a consensus to extend output cuts.
  • West Texas oil rose 1.1 percent to $47.83 a barrel after jumping more than 3 percent Wednesday.
  • Gold futures added 0.5 percent to $1,225.30 following the longest losing streak since October.
  • Iron ore on SGX AsiaClear in Singapore fell as much as 4.5 percent to $59 a ton, the lowest since October amid a clampdown on leverage in China, the top consumer, and expanding global supply.
  • Copper rallied after reports that China’s central bank will inject cash into the world’s second-largest economy.

Source: Bloomberg

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