U.S. Stocks Mixed; Treasuries Rise, Dollar Falls: Markets Wrap
(Bloomberg) -- U.S. stocks slipped, halting a four-day advance as weakness in industrials outweighed gains in technology shares. The dollar slumped amid ongoing political turmoil and Federal Reserve minutes that signaled no change to the pace of tightening.
The S&P 500 Index dropped less than a point, while the technology-heavy Nasdaq indexes added almost 0.4 percent. Small caps also rose. Oil prices climbed above $67 a barrel, driving energy producers higher, after a U.S. government report showed the biggest decline in crude inventories since late July.
The dollar weakened a fifth day and the 10-year Treasury yield fell to 2.82 percent after the Fed signaled in meeting minutes a readiness to hike again if the economy stays on track.
“The Fed demonstrated that it’s sticking to its game plan by raising rates once a quarter at least for the next two quarters. Nothing in the FOMC minutes indicates any change to those plans,” said Bob Baur, chief global economist at Principal Global Investors.
While all eyes focused on the legal drama in Washington, U.S. stocks remained near records amid double-digit corporate profit growth. At the same time, benchmark Treasury yields have held below 3 percent even as the Fed remains on track to raise rates amid a strengthening economy. Add to the mix trade wars and turmoil in emerging markets. Some clarity could come from a meeting of central bankers on Friday in Jackson Hole, Wyoming.
Elsewhere, the Mexican peso gained after a White House official suggested a Nafta deal was near. Emerging-market shares rallied, while the Japanese yen edged lower.
Terminal users can read more in our Bloomberg Markets Live blog here.
Here are some key events coming up this week:
- Companies announcing earnings include Alibaba, Qantas and China’s Bank of Communications.
- Central bankers gather at the Kansas City Fed’s annual Jackson Hole symposium, where Powell speaks Friday.
- The Fed releases the minutes from latest FOMC meeting on Wednesday.
- Euro area preliminary PMI data for August is due on Thursday.
These are the main moves in markets:
- The S&P 500 Index fell less than 0.1 percent to 2,861.82 of 4 p.m. New York time.
- Nasdaq Composite Index rose 0.4 percent.
- The Stoxx Europe 600 Index was little changed.
- The MSCI Emerging Market Index increased 0.7 percent to the highest in more than a week.
- The Bloomberg Dollar Spot Index decreased 0.2 percent, its fifth straight decline, the longest streak in six months.
- The euro rose 0.3 percent to $1.1606, its sixth straight advance.
- The Japanese yen fell 0.2 percent at 110.50 per dollar.
- The Mexican peso increased 1 percent to 18.87753 per dollar, the strongest in more than a week.
- The yield on 10-year Treasuries fell one basis point to 2.82 percent.
- The yield on two-year Treasuries was little changed at 2.59 percent.
- Germany’s 10-year yield declined less than one basis point to 0.33 percent.
- The Bloomberg Commodity Index advanced 0.2 percent to the highest in more than a week.
- West Texas Intermediate crude reached the highest in more than two weeks on its fifth straight advance.
- Gold was steady at $1,195.71 an ounce, the highest in more than a week.
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