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Stocks retreated Monday, led by financials, as the dollar rebounded and Dutch bank ING announced plans to split in two.
Stocks had opened higher, following an upbeat economic report and a couple of earnings beats, but that all evaporated.
The Dow Jones Industrial Averagewas down more than 60 points in early afternoon trading, led by Bank of America and JPMorgan. This came after the blue-chip index snapped a two-week winning streak last week.
The dollar gained against major currencies in what some analysts said was a technical rebound.
"Most major currencies including the euro are running out of steam," Kathy Lien, director of FX research at GFT, told Reuters. "Specifically, the euro's earlier rally wasn't really supported by data as we saw the German consumer confidence was actually weaker."
As the dollar rose, oil and gold fell — oil fell below $79 a barrel after earlier topping $81. Gold dropped $10 to around $1,046 a troy ounce.
Many analysts are predicting gold will go to $1,500 — or even higher — but Brian Belski, chief investment strategist at Oppenheimer, said he's not so sure.
"I believe the long gold/short dollar trade is as crowded right now as the long tech trade was in 1999," Belski said on CNBC this morning. "Typically and historically when you have everybody agreeing on the same trade, you should become worried."
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