GLOBAL MARKETS-Wall St slides, bond yields rise on mixed earnings, ECB statement

* ECB's Draghi sounds optimistic economic tone
* Mixed corporate earnings pull S&P 500, Nasdaq off their
highs
* Euro bounces off two-month low
* Crude gains amid U.S. stockpile drop, Middle East tensions

(Updates to U.S. market open, changes dateline, byline)
By Stephen Culp
NEW YORK, July 25 (Reuters) - U.S. stocks stumbled out of
the starting gate and bond yields gained ground following mixed
earnings and a rosier-than-expected statement from the European
Central Bank's governor.
After the ECB signalled its intention cut interest rates and
explore additional monetary easing opportunities, governor Mario
Draghi sounded more upbeat on the economy than expected, sending
equities lower and boosting government debt yields. A mixed bag of earnings reports from a wide range of U.S.
companies pulled Wall Street lower a day after the S&P 500 and
the Nasdaq hit record highs, as a common theme of profit beats
amid flagging revenues began to emerge.
"That's been the M.O. for earnings for a while," said Paul
Nolte, portfolio manager at Kingsview Asset Management in
Chicago. "The financial engineering such as buybacks and
cost-cutting continues to go on, and that's why you're seeing
these beats, while the top-line growth is constrained by a
slowdown in global growth in general."
Corporate results are increasingly pointing to an economic
slowdown in the midst of a protracted trade war between the
United States and China, which should encourage the U.S. Federal
Reserve to cut interest rates next Wednesday for the first time
in a decade.
"Investors are waiting for our ECB counterpart next week
when (Fed) chairman Powell makes his statement and see how that
sets us up for the rest of the year," Nolte added.
The Dow Jones Industrial Average .DJI fell 54.36 points,
or 0.2%, to 27,215.61, the S&P 500 .SPX lost 5.78 points, or
0.19%, to 3,013.78 and the Nasdaq Composite .IXIC dropped
43.18 points, or 0.52%, to 8,278.33.
European stocks reversed their initial knee-jerk gains in
reaction to the ECB's easing intentions after the central bank's
governor Mario Draghi sounded more upbeat on the economy than
expected. The pan-European STOXX 600 index .STOXX lost 0.36% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.20%.
U.S. Treasury yields rose after Draghi said the ECB sees a
low risk of a recession in the euro zone, even as he
acknowledged a worsening outlook. Benchmark 10-year notes US10YT=RR last fell 8/32 in price
to yield 2.0775%, from 2.05% late on Wednesday.
The 30-year bond US30YT=RR last fell 22/32 in price to
yield 2.609%, from 2.578% late on Wednesday.
The dollar index, which measures the greenback against a
basket of world currencies, slipped versus the euro, which
bounced off a two-month low following Draghi's upbeat statement.
The dollar index .DXY fell 0.07%, with the euro EUR= up
0.17% to $1.1158.
The Japanese yen weakened 0.34% versus the greenback at
108.56 per dollar, while Sterling GBP= was last trading at
$1.249, up 0.07% on the day.
Oil prices rose as Middle East tensions and a substantial
drop in U.S. crude stocks raised supply concerns, but faced
headwinds in the form slowing economic growth that could reduce
fuel demand. U.S. crude CLcv1 rose 0.84% to $56.35 per barrel and Brent
LCOcv1 was last at $63.73, up 0.87% on the day.
Spot gold XAU= dropped 0.5% to $1,418.80 an ounce.
Copper CMCU3 rose 0.23% to $6,013.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.08% to $1,827.50 a tonne.

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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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BREAKINGVIEWS-Markets want to see colour of Mario Draghi's money
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