U.S. stocks traded lower Tuesday as the yen and euro strengthened against the dollar. Weaker-than-expected Chinese manufacturing data also weighed slightly.
The Dow Jones industrial average fell more than 100 points soon after the open, with Goldman Sachs contributing the most to declines.
Among the few advancers were Pfizer and Apple, which attempted to break its first eight-day losing streak since 1998.
The euro traded near highs not seen since last August, while the yen was around its strongest against the dollar since October 2014. The dollar index hovered near 15-month lows after falling half a percent Monday for its sixth-straight day of decline.
“I’d say it’s more of the currency. I think we’re following more of Europe,” said Peter Boockvar, chief market analyst at The Lindsey Group.
“I think what you’re seeing is, day-to-day the market doesn’t have much of a memory,” he said.
U.S. stocks had their best day in nearly three weeks on Monday, helped by softness in the U.S. dollar index.
On Tuesday, the U.S. dollar index traded mildly lower, with the euro near $1.155 and the yen at 105.97 yen against the greenback as of 9:07 a.m. ET.
“A lot of momentum against the U.S. dollar right now,” said Jeremy Klein, chief market strategist at FBN Securities.
“It’s a very circuitous trade,” he said. “You’d (want a weaker dollar) at least with earnings but the reality is the strong euro is hurting European equities.”
European stocks were more than 1 percent lower, while bank stocks underperformed with a decline of more than 2.5 percent.
Japanese markets were closed for a holiday. Other Asian stocks closed mostly higher, with the Shanghai composite reopening after a long weekend with gains of almost 1.9 percent.
However, the China Caixin manufacturing PMI remained in contraction territory for a 14th-straight month as the index missed expectations with a decline to 49.4 in April from 49.7 the prior month.
In the United States, shares of Apple will be in focus after the stock posted its first eight-day losing streak since 1998 on Monday. The only two times Apple posted a nine-day losing streak was in June 1991 and September 1990, according to Bespoke. But in the month following the eight-day losing streaks in the 1990s, Apple posted a median gain of about 8 percent, Bespoke said.
In earnings news, Pfizer topped expectations on both the top and bottom line. The drug giant also raised its full-year earnings forecast.
AIG reported lower-than-expected profit for the third-straight quarter.
Cleveland Fed President Loretta Mester is due to speak in the morning.
Atlanta Fed President Dennis Lockhart is also scheduled to speak Tuesday.
In a question and answer session with reporters, Lockhart said early Tuesday in a Reuters article that the Fed could hike twice this year, depending on the underlying strength of the economy. He had no firm view on raising rates in June but added there is currently not enough evidence on U.S. economic growth and firming inflation, the news wire reported.
Aside from monthly auto sales, no major data is expected Tuesday. The key economic news for the week is the employment report due Friday.
—CNBC’s Peter Schacknow and Reuters contributed to this report.
On tap this week:
Earnings: Avis Budget, CBS, Illumina, Mylan Labs, Western Union, Etsy, Glu Mobile, Live Nation Entertainment, Match Group, Newfield Exploration, Noodles & Co., Papa John’s, Potbelly, Zillow
10:30 a.m. Cleveland Fed President Loretta Mester
7 p.m. Atlanta Fed President Dennis Lockhart
Earnings: AB InBev, Priceline, Royal Dutch Shell, Siemens, Time Warner, Humana, IntercontinentalExchange, Zoetis, Cedar Fair, Kate Spade, Shopify, Shutterstock, Virtu Financial, Wix.com, 21st Century Fox, MetLife, Allstate, Fitbit, Kraft Heinz, Murphy Oil, Tesla Motors, Transocean, Whole Foods, Eldorado Gold, GoDaddy, Weight Watchers, Yamana Gold, Zynga
7 a.m.: Mortgage applications
8:15 a.m. ADP employment
8:30 a.m. International trade; productivity and costs
9:45 a.m. Services PMI
10 a.m. ISM nonmanufacturing; factory orders
10:30 a.m.: Oil inventories
6:30 p.m. Minneapolis Fed President Neel Kashkari
Earnings: Alibaba, Merck, Chesapeake Energy, Discovery Communications, Kellogg, Regeneron, MGM Resorts, Scripps Networks Interactive, AMC Networks, Avon Products, Fortress Investment, SeaWorld, Time, Activision Blizzard, Cerner, Motorola Solutions, News Corp., Square, Tableau Software, Dreamworks Animation, El Pollo Loco, FireEye, Herbalife, TrueCar, Wingstop, Yelp
7:30 a.m.: Challenger Job-Cut report
8:30 a.m. Initial claims
10:30 a.m.: Natural gas inventories
11:50 a.m. St. Louis Fed President James Bullard
7:15 p.m. Atlanta Fed’s Lockhart, Dallas Fed President Rob Kaplan, St. Louis Fed’s Bullard, San Francisco Fed’s Williams at Hoover Conference
Earnings: ArcelorMittal, Cigna, Willis Towers Watson, Madison Square Garden, Berkshire Hathaway
8:30 a.m. Employment report
1 p.m.: Oil rig count
3 p.m.: Consumer credit
*Planner subject to change.
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