Investors sought safety in government bonds and gold and shunned equities and risk assets ahead of ex-FBI director James Comey's testimony on Thursday. Fred Katayama reports.
Investors shunned risk Tuesday ahead of FBI director James Comey's testimony before Congress and the British election on Thursday. Stocks fell, dragged lower by consumer and financial shares. Investors sought safety, buying gold and government bonds. Fired by President Donald Trump, Comey's testimony could dampen momentum for the White House's legislative agenda. Peter Kenny of Global Markets Advisory Group. SOUNDBITE: PETER KENNY, SENIOR MARKET STRATEGIST, GLOBAL MARKETS ADVISORY GROUP, (ENGLISH) SAYING: "First of all, you have a global story. The global story is the British election, obviously terror concerns overseas - that's driving some of the caution in the market. Secondarily, you have U.S. investors looking at equity markets as being fairly elevated in terms of their pricing, stretched valuations." Department store stocks like Macy's, Kohl's and Nordstrom were the leading decliners on the S&P 500 Investors sent Michaels shares to a three-year low. The crafts retailer cut its outlook. Amazon said it will offer its Prime subscription service at a discount to shoppers getting government aid. That's a key customer base for rival Wal-Mart. Weakness in the healthcare and consumer sectors pulled stocks lower in Europe.