North American stocks rise as Treasuries, U.S. dollar fall
U.S. stocks rose in an up-and-down session as investors assessed the latest batch of corporate earnings and simmering geopolitical tensions ahead of the weekend. The dollar weakened and oil rose.
The S&P 500 Index rose in afternoon trading after bouncing off its average price of the past 200 days, a key technical level that’s served as bottom for recent sell-offs. The measure earlier powered to a gain of as much as 1 per cent on the strength of corporate results, but gave back the advance as investors grew concerned tariffs will increasingly dent profit margins. Honeywell warned as much during its conference call, dragging down shares in Boeing and Caterpillar.
The gyrations capped a wild week of trading that saw stocks put in their biggest rally since March only to tumble almost 1.5 per cent two days later. The S&P 500 is virtually flat in the five days. Tech shares remained under pressure, with the Nasdaq indexes little changed on their way to a third straight weekly retreat.
A renewed rise in Treasury yields — the 10-year rate targeted 3.2 per cent again — added to pressure on equities, though bank shares benefited. The dollar slumped versus major peers. Oil climbed back above US$69 a barrel. Italian bonds weighed on European debt amid the country’s debt crisis, while a slowdown in Chinese growth added to concerns that the world economy is not on firm footing.
“Earnings were good today, but they could be bad on other days next week, so we can’t get too excited about one day of earnings,” said Matt Maley, equity strategist at Miller Tabak + Co. “This is especially true given that interest rates are holding up and the trade tensions with China are not going away.”
Elsewhere, European shares edged lower, while China’s stock rout eased even after disappointing economic-growth data that adds pressure on the country’s leadership. The pound rose after U.K. Prime Minister Theresa May was said to be ready to ditch a key demand in Brexit talks. Oil rose to US$69 a barrel.
These are the main moves in markets:
Stocks
Canadian stocks moved higher. The S&P/TSX Composite Index was up 146.70 points to 15,550.83.
The S&P 500 Index rose 0.3 per cent as of 1:20 p.m. New York time. The Nasdaq Composite Index fell 0.1 per cent, while the Nasdaq 100 gained 0.2 per cent. The Stoxx Europe 600 Index fell 0.1 per cent. The MSCI Emerging Market Index gained 0.1 per cent.
Currencies
The Bloomberg Dollar Spot Index fell 0.1 per cent. The euro climbed 0.5 per cent to US$1.1512. The Japanese yen declined 0.3 per cent to 112.54 per dollar. The MSCI Emerging Markets Currency Index increased 0.1 per cent.
Bonds
The yield on 10-year Treasuries gained two basis points to 3.20 per cent. Germany’s 10-year yield rose two basis points to 0.43 per cent. Britain’s 10-year yield added one basis point to 1.550 per cent.
Commodities
The Bloomberg Commodity Index climbed 0.4 per cent. West Texas Intermediate crude gained 1 per cent to US$69.36 a barrel. Gold fell 0.1 per cent to US$1,229.10 an ounce.
Source: BNN Bloomberg
https://www.bnnbloomberg.ca/u-s-stocks-advance-on-earnings-boost-dollar-falls-1.1154847
