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Overnight Markets: S&P and Dow fall as financial stocks weigh

Overnight Markets: S&P and Dow fall as financial stocks weigh

US stocks declined after choppy trade on Monday, led by energy and financial stocks and as some investors showed signs of earnings season nerves.

The Dow Jones Industrial Average fell 127 points, or 0.5%, to 25,315, the S&P 500 lost 12 points, or 0.43%, to 2,756 and the Nasdaq Composite added 20 points, or 0.26%, to 7,469.

Investors will be greeted with a deluge of earnings this week as the third-quarter reporting season arrives. More than 150 companies are on tap to announce financial results.

Aside from earnings, worries about the impact of higher interest rates on the economy linger with the Federal Reserve indicating that it is likely to tighten monetary policy again by the end of the year.

Shares of Kimberly-Clark Corp. fell 3.5% after posting lower profits and announcing a management shuffle.

Shares of Hasbro Inc. declined 3.1% after the toy maker missed third-quarter profit and revenue expectations and announced a restructuring that will cut jobs.

Banks fell broadly amid worries that higher mortgage rates would cap loan growth. Bank of America and Citigroup both fell more than 3%. JP Morgan Chase and Goldman Sachs closed 1.4% and 2.4% lower, respectively.

Energy services company Halliburton Co. topped third-quarter profit and revenue estimates but shares slid 3%.

Shares of Advanced Micro Devices Inc. rose 5.8% ahead of its earnings announcement on Wednesday. The chip maker has posted an impressive 145% return year-to-date, but pulled back in recent days over questions surrounding trade policy.

Shares of American Railcar Industries Inc. surged 51% after the company announced said it would be acquired by a fund managed by investment firm ITE Management.

In Asia, share markets fell in morning trade on Tuesday as investors remained cautious amid rising geopolitical tensions.

The Greater China markets were in negative territory after seeing strong gains over the last two sessions. Hong Kong's Hang Seng index fell 1.18% while the Shanghai composite shed 0.42%.

In Japan, the Nikkei 225 was down 1.73% while the Topix index fell 1.7%. Over in South Korea, the Kospi declined by 1.76%. Australia's ASX 200 was down 0.82% with the heavily-weighted financial sector falling 1.06%.


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