U.S. Stocks Rise, Treasuries Fall on Economic Data: Markets Wrap

(Bloomberg) -- U.S. stocks advanced while Treasuries fell after solid economic data bolstered confidence in the economy and the case for higher interest rates. Financial shares climbed after three of the largest American lenders reported results.

The Nasdaq Composite Index notched a fresh record, while the S&P 500 Index pared a weekly decline that’s seen it slip from an all-time high. The yield on the 10-year Treasury note climbed to 2.39 percent after retail sales picked up and producer prices firmed last month. The dollar fell to the lowest point in almost a month. Gold retreated from a two-month high. U.S. markets are closed Monday for a federal holiday.

The data on the American economy briefly reinvigorated trades that had stalled in recent days amid concern that Donald Trump’s policy proposals won’t translate to immediate economic gains. The pro-growth agenda he has only broadly outlined sparked rallies in equities and the dollar, while sending haven assets lower in the month after his election. Those moves stalled after the Federal Reserve signaled in December that faster growth could force it to lift rates higher than markets had been expecting.

“Since Trump was elected expectations were set very high,” said Andrzej Pioch, who helps oversee $1.3 billion as a money manager at Legal & General Investment Management Ltd in London. “Now we need to see some evidence in the hard data to support that. We expect the earnings to be modestly up but a lot of positive news is already priced in.”

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Stocks

• The S&P 500 rose 0.2 percent to 2,274.58 at 4 p.m. in New York, 0.1 percent below its Jan. 6 closing record after the index slipped by that much in the week.
• Bank of America Corp. rose 0.4 percent, while Wells Fargo & Co. added 1.5 percent. Both lenders reported earlier.
• The Nasdaq Composite added 0.5 percent, pushing its advance in 2017 to 3.6 percent as it’s risen every day but one so far this year. The Dow Jones Industrial Average slipped to finish below 19,900.
• The Stoxx Europe 600 Index climbed 1 percent, rebounding from a 0.7 percent drop on Thursday. It advanced 0.1 percent in the week.

Currencies

• The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, fell for a third day, bringing its decline in the week to 0.8 percent. It’s down three straight weeks after surging following the election. 
• The Japanese yen rose for a fifth day versus the dollar to 114.64. The euro climbed a third day to $1.0638.
• Turkey’s lira slid 0.7 percent and is heading for a 3.9 percent weekly loss.

Bonds 

• The benchmark 10-year Treasury yield climbed three basis points to 2.390 percent, after touching the lowest level since Nov. 30 on Thursday.
• Bonds were mixed in Europe. Greek bonds led losses, with the yield on 10-year notes climbing four basis points to 6.8 percent. The Portuguese 10-year yield retreated 1 basis points to 3.86.

Commodities 

• Oil posted its first weekly slide in more than a month as traders await proof that OPEC producers have cut production. 
• West Texas Intermediate crude futures slipped 1 percent to $52.49 a barrel in New York.
• Gold futures dropped 0.2 percent to $1,197.70 an ounce, paring a third weekly gain.
• Copper futures rose 0.7 percent to settle at $2.69 a pound in New York. The contract touched a five-week high during the session.

--With assistance from Aleksandra Gjorgievska Stephen Kirkland Neil Denslow and Natasha Doff To contact the reporter on this story: Jeremy Herron in New York at jherron8@bloomberg.net. To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Jeremy Herron