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Stocks Fall as Boeing Leads Drop; Dollar Weakens: Markets Wrap

Claire Ballentine and Sarah Ponczek
Stocks Fall as Boeing Leads Drop; Dollar Weakens: Markets Wrap

(Bloomberg) -- U.S. equities ended the week on a down note after flirting with all-time highs in the wake of mostly positive earnings reports. The dollar weakened to its lowest level since July.

Boeing accounted for about two-thirds of the decline in the Dow Jones Industrial Average, while sagging technology stocks such as Microsoft weighed on the Nasdaq Composite. U.S. regulators said Boeing failed to turn over communications between its employees during the certification of the grounded 737 Max jet.

“Markets are more forward looking, meaning that what happened in earnings season in the previous quarter has a temporary impact in the markets, but what is more important to know is the big trends,” said Juha Seppala, director of macro asset-allocation strategy for UBS Asset Management.

Treasuries rose, while most sovereign bonds fell across Europe. Oil futures fluctuated. The lira gained after Turkey and the U.S. agreed Thursday to a temporary cease-fire plan for Syria. While sterling was range bound it was still poised for a third week of gains before U.K. Prime Minister Boris Johnson seeks parliamentary backing on Saturday for his Brexit deal.

American earnings so far have been relatively upbeat, after Morgan Stanley on Thursday became the latest big bank to buck concerns about weak growth. Traders will also be mulling the data from China, which showed GDP slow to 6% in the third quarter, with limited pick-up from domestic demand, but factory output improve and retail sales hold up.

Earlier in Asia, shares closed down in Shanghai after Chinese GDP rose by the least since the early 1990s last quarter. Benchmarks in Japan and South Korea gave up gains to finish lower.

Here are the main movers in markets:

To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka

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