World Market Update

 Stocks Fall as Stimulus Hopes Fade, Banks Slump: Markets 

Stocks dropped after Treasury Secretary Steven Mnuchin down played the chances of striking a stimulus deal before the election.

Traders also parsed earnings from big banks, with Wells Fargo & Co. tumbling 6% after reporting a 56% plunge in profit and warning that net interest income could “get a little bit softer” in 2021. Bank of America Corp. slid amid an increase in trading revenue that was just a fraction of its competitors’ gains, while Goldman Sachs Group Inc. outperformed after earnings per share jumped to a record that was almost twice as high as analysts predicted. Energy stocks joined a rally in oil and as Concho Resources Inc. soared 10% on a news report that ConocoPhillips is in talks to acquire the company. The dollar fell.

Stocks in Asia looked set to follow their U.S. peers lower after Treasury Secretary Steven Mnuchin played down the chances of striking a stimulus deal before next month’s election. The dollar retreated and Treasuries were steady. Equity futures edged down in Japan, Hong Kong and Australia. The S&P 500 sank as traders also parsed earnings from big banks, with Wells Fargo tumbling after reporting a plunge in profit and warning that net interest income could “get a little bit softer” in 2021. Energy stocks joined a rally in oil and the British pound trimmed gains as investors awaited more news on Brexit negotiations.