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Stocks Mixed as Volumes Dwindle Before Earnings: Markets Wrap

U.S. Futures Edge Up With Europe Stocks; Oil Slips: Markets Wrap

Stocks Mixed as Volumes Dwindle Before Earnings: Markets Wrap
Traders work at the new Nasdaq Inc. trading floor of the Philadelphia Stock Exchange (PHLX) inside FMC Tower in Philadelphia, Pennsylvania, U.S. (Photographer: Charles Mostoller/Bloomberg)

(Bloomberg) -- Most U.S. equity benchmarks declined amid thin volumes Thursday as investors cast an eye toward the start of earnings season. Treasuries dropped as data confirmed the economy remains on solid footing.

The S&P 500 was an outlier among stock indexes, eking out its 10th gain in 11 sessions in trading more than 20 percent below its 30-day average. Health insurers led decliners as political risks intensified, while industrials paced gains as Boeing, still embattled in the 737 Max crisis, snapped a four-day losing streak. Banking shares rose before Wells Fargo and JPMorgan report first-quarter earnings that will lead off the season Friday.

The 10-year Treasury yield pushed toward 2.50 percent after data showed a strong U.S. labor market and tepid price gains. The dollar advanced the most in more than a week, while the pound fell as Prime Minister Theresa May accepted the European Union’s offer to push the Brexit deadline out six months. Oil in New York retreated from a five-month high as an increase in U.S. inventories to the highest since late 2017 overshadowed OPEC’s efforts to reduce production.

Stocks Mixed as Volumes Dwindle Before Earnings: Markets Wrap

“People are not yet wholly embracing the rally that’s happened. I think that’s evident in some of the numbers,” Mike Stritch, chief investment officer for U.S. wealth management at BMO Wealth Management, said in an interview. “Earnings season is upon us. People are going to wait and see what expectations look like for the rest of the year. That’s going to be the key theme.”

Investor optimism on global stocks and commodities has endured even as warnings about a global economic slowdown abound. That bullishness may be tested as companies report earnings. Caution over economic pullbacks has emerged in comments from the European Central Bank, the International Monetary Fund and in the Federal Reserve minutes -- which reinforced expectations that interest rates should be on hold for the rest of this year.

In emerging markets, equities declined and were poised to snap their longest streak of gains in more than one year. India’s rupee strengthened as elections started.

Here are some notable events coming up:

  • U.S. banks begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo.
  • Singapore decides on monetary policy and releases GDP data Friday.

These are the main moves in markets:

Stocks

  • The S&P 500 Index was little changed at 2,888.32 as of 4:00 p.m. New York time.
  • The Nasdaq Composite Index fell 0.2 percent, while the Dow industrial dropped 0.1 percent.
  • The Stoxx Europe 600 Index increased 0.1 percent.
  • The MSCI Asia Pacific Index sank 0.6 percent to the lowest in more than a week.
  • The MSCI Emerging Market Index fell 0.8 percent, the first retreat in more than two weeks.

Currencies

  • The Bloomberg Dollar Spot Index climbed 0.3 percent.
  • The euro fell 0.2 percent at $1.1256.
  • The Japanese yen dipped 0.6 percent to 111.64 per dollar.
  • The British pound declined 0.2 percent to $1.3059.
  • The MSCI Emerging Markets Currency Index was little changed.

Bonds

  • The yield on 10-year Treasuries gained three basis points to 2.495 percent.
  • Germany’s 10-year yield climbed two basis points to -0.01 percent.
  • Britain’s 10-year yield advanced five basis points to 1.15 percent.

Commodities

  • The Bloomberg Commodity Index sank 1 percent.
  • West Texas crude fell 1.4 percent to $63.72 a barrel.
  • Gold decreased 1.4 percent to $1,295.80 an ounce.

--With assistance from Randall Jensen and Eddie van der Walt.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Todd White

©2019 Bloomberg L.P.