Late Equity Roundup: BoE Bailey Ultimatum Saps Stocks and Rate Bid

Stock indexes reverse second half gains, trade weaker with Tsys after BoE Gov Bailey, speaking in DC, warned of "serious risk to financial stability in the UK". Currently, SPX eminis trade -40.5 (-1.12%) at 3584.25; DJIA -68.44 (-0.23%) at 29134.61; Nasdaq -179.5 (-1.7%) at 10362.85.

• Bailey also doubled down on message to pension funds is that "you've got three days left" reinforcing that the current intervention in markets is temporary and that "we will be out" by the end of the week.
• Other market watchers suggested the late reversal is do to factors outside the gilt market than actually from the market participants this is directly impacting based on the day's low take-up in purchase operations.
• Consumer Staples (+0.72%), Real Estate (0.41%) and Health Care (+0.18%) shares outperformed, stemming broader weakness in Communication Services (-2.16%), Information Technology (-2.09%) and Financials (-1.62%).
• Reminder: Q3 equity earnings kicks off with PepsiCo (PEP) tomorrow before the open, Walgreens Boots (WBA), Dominos (DPZ), Progressive (PGR), Delta (DAL) and Blackrock (BLK) early Wednesday.