Stocks Grind to Another Record High; Yields Fall: Markets Wrap
(Bloomberg) -- U.S. stocks eked out another all-time high and Treasury yields declined after a report showed consumer sentiment fell to the lowest level in nearly a decade. The dollar weakened and crude oil slumped.
The S&P 500 closed at a record for fourth consecutive session while trading within a 0.2% range Friday. The consumer staples and real estate sectors led gains, while energy and financial shares declined. The benchmark index has almost doubled since the pandemic lows reached in March 2020, with the energy sector the biggest gainer during that period. Walt Disney rose after its streaming subscriptions beat estimates. European stocks posted the longest winning streak since 1999.
“It’s just a quiet summer Friday,” said Matt Maley, chief market strategist for Miller Tabak + Co. “Most of the earnings season is behind us. Therefore, people are just taking a breath after a nice rally.”
The U.S. equity rally slowed Friday after data showed the University of Michigan’s preliminary sentiment index fell by 11 points to 70.2, the lowest since December 2011.
The slump in confidence risks a more pronounced slowing in economic growth in coming months should consumers rein in spending. The recent deterioration in sentiment highlights how rising prices and concerns about the delta variant’s potential impact on the economy are weighing on Americans.
The easing in the energy sector rally has also raised concern. On Tuesday, the energy sector capped a 19-day streak in which no member of the index traded above its 50-day moving average, the second-longest span since the late-1950s, data compiled by SentimenTrader show. That’s something that hasn’t happened since the summer of 2001 when Enron and its ensuing bankruptcy was pressuring the energy complex.
Crude oil futures eased in New York. The latest Covid-19 wave is leading to tighter curbs on movement across the globe, though there are mixed assessments on its impact. The International Energy Agency reduced its demand forecasts for the rest of the year, while Goldman Sachs Group Inc. predicts only a transient hit to consumption.
For more market analysis read our MLIV blog.
These are the main moves in markets:
- The S&P 500 rose 0.2% as of 4 p.m. New York time
- The Nasdaq 100 rose 0.3%
- The Dow Jones Industrial Average was little changed
- The MSCI World index rose 0.2%
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.6% to $1.1798
- The British pound rose 0.4% to $1.3870
- The Japanese yen rose 0.8% to 109.56 per dollar
- The yield on 10-year Treasuries declined seven basis points to 1.29%
- Germany’s 10-year yield was little changed at -0.47%
- Britain’s 10-year yield declined three basis points to 0.57%
- West Texas Intermediate crude fell 1.6% to $67.97 a barrel
- Gold futures rose 1.6% to $1,780.20 an ounce
©2021 Bloomberg L.P.