* Pharma stocks fall after Trump says he will cut drug
* Rate expectations underpin dollar
* Oil prices edge down, in tight range as stockpile data
By Herbert Lash and Dion Rabouin
NEW YORK, March 7 A measure of major stock
markets around the globe slipped on Tuesday, with the Dow and
S&P 500 on pace for their first back-to-back losses in more than
a month, while expectations the Federal Reserve will raise
interest rates supported the U.S. dollar.
Shares of large U.S. pharmaceutical and biotechnology
companies sold off after a tweet from U.S. President Donald
Trump on the need to lower drug prices. Shares of Pfizer Inc
, Merck & Co and Amgen Inc each dropped
around half a percent.
The U.S. dollar edged up 0.15 percent against a
basket of six major trading currencies, rising 0.35 percent
against the British pound and 0.2 percent against the
Swiss franc ahead of the Fed's meeting next week and
backed by jitters about economic and political developments in
U.S. Treasury yields rose, supporting the dollar, as
investors made room for this week's supply of government debt
and also in anticipation of a Fed rate hike later this month.
The monthly U.S. jobs report, due on Friday, is expected to
show an increase of 190,000 jobs, probably enough to push the
Fed to raise its base rate again for the second time in four
The market is taking in stride expectations the Fed will
raise rates, unlike past years, said Rahul Shah, chief executive
of Ideal Asset Management in New York.
"As long as we keep getting macroeconomic data that's
supportive of a rate hike we're going to continue to see stocks
rally," Shah said. "If financials continue to rally with higher
rates and industrials rally with better economic data, that
could be enough to power the market higher," he said.
The Dow Jones Industrial Average fell 17.91 points,
or 0.09 percent, to 20,936.43, the S&P 500 lost 3.58
points, or 0.15 percent, to 2,371.73 and the Nasdaq Composite
dropped 1.36 points, or 0.02 percent, to 5,847.82.
Stocks in Europe closed slightly lower as weak corporate
earnings and the biggest fall in German industrial orders since
the depths of the global financial crisis weighed on sentiment.
Europe's FTSEurofirst index of the 300 leading
regional shares fell 0.28 percent, pulled down by healthcare and
MSCI's all-country world stock index dipped
Brent crude fell 17 cents to $55.91 a barrel while
U.S. West Texas Intermediate (WTI) crude fell 4 cents
to$53.19. Both benchmarks had traded in negative and positive
territory since the start of the Asian session. Investors were
waiting for the American Petroleum Institute's inventory data on
Tuesday and the U.S. Energy Information Administration's report
U.S. Treasury yields rose with the 30-year yield at its
highest in more than a month as investors prepared for this
week's supply of coupon-bearing government debt led by $24
billion worth of three-year notes. They also rose after data
showed the U.S. trade deficit grew in January to its widest
monthly level in nearly five years.
Investors also reduced their bond holdings in anticipation
of a rate increase from the Fed's policy meeting next week.
Benchmark 10-year Treasury notes fell 6/32 in
price to yield 2.5142 percent, while the 30-year yield
was up nearly 2 basis points at 3.116 percent after
touching its highest level since Feb. 3, Reuters data showed.
Gold slipped 0.76 percent to $1,216.06 an ounce.
(Reporting by Herbert Lash and Dion Rabouin; editing by Clive
McKeef and Chizu Nomiyama)