U.S. stocks depreciate amidst earnings releases as Euro reverses slide

Stocks of U.S companies fell Thursday, from record highs amid the release of corporate results, while the euro recovered from a two-year low.

The S&P 500 dropped from an all-time high and the Dow Jones Industrial Average slumped for a second day as investors digested a flood of earnings.

3M initially advanced after beating estimates before turning lower, while Tesla plunged on weak results.

Ford slumped as the gloom in the global auto industry spread. PayPal and Dow dropped after results.

Meanwhile European bonds reversed gains after Mario Draghi, the European Central Bank’s president didn’t give markets more of a dovish signal.

Draghi’s tone did more to raise recession fears than it did to ease them,” said Jim Paulsen, Leuthold Group Inc.’s chief investment strategist.

“That’s what the market is reacting to because there is the fear out there that even if we start easing, it might be too late and it brings up that same fear here in the United States.”

The euro equally rose versus the dollar and treasuries fell after Draghi left rates unchanged but said a “significant degree” of monetary stimulus is needed and the outlook is “getting worse and worse.”

“For the markets, it continues to be this tug-of-war between continued policy stimulus and whether that’s going to be enough to head off the slowing trend in global growth,” said Ed Campbell, portfolio manager and managing director at QMA.

Earnings have been broadly positive for stocks, but worries still linger over trade and a slowing global economy. Oil advanced as declining U.S. crude stockpiles and threats to Persian Gulf exports mingled with concerns that slower economic growth will stifle demand.

Most major indexes in Asia advanced, though Korean stocks declined for a second day. Turkey’s lira fluctuated after the central bank cut its key rate by the most on record.

Australia’s dollar hit its low of the session and benchmark bond yields touched a record low after Reserve Bank Governor Philip Lowe said he was prepared to cut interest rates again if needed.