U.S. Stocks Eke Out Latest Record on Positive Data: Markets Wrap
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

U.S. Stocks Eke Out Latest Record on Positive Data: Markets Wrap

(Bloomberg) -- U.S. stocks inched upward Tuesday as manufacturing and housing data topped expectations, just as the sugar rush of a partial trade deal between America and China began to wear off. The dollar gained while 10-year Treasuries slipped.

The S&P 500 Index closed at a new high, barely topping the previous session’s record, amid news that U.S. factory production last month rebounded by more than forecast and that construction of new U.S. homes beat estimates as permits to build climbed to a 12-year high. Financial and consumer discretionary stocks led the benchmark higher.

“Housing is an economic bellwether and its recent strength is further encouraged by the strength we’ve seen in manufacturing, as those two industries are typically related,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial. “But critical to the health of housing is ongoing trade tensions.”

U.S. Stocks Eke Out Latest Record on Positive Data: Markets Wrap

The Stoxx Europe 600 dropped from Monday’s record close, as Unilever tumbled in the wake of a sales-growth warning and led a slump in personal goods makers. U.K. shares were particularly volatile, and sterling sank the most since July versus the euro after Prime Minister Boris Johnson proposed a legal change that revived the chances of a no-deal Brexit. Earlier in Asia, a benchmark stock gauge rose to the highest level since mid-2018. European government bonds drifted higher.

With a $44 trillion global gauge of stocks close to an all-time high and benchmarks in Europe and the U.S. also hovering near record levels, concerns linger over the details of the China accord. The warning by bellwether Unilever also took some of the shine from improved forecasts for the global economy.

Elsewhere, West Texas intermediate crude edged higher, while gold was little changed. Bitcoin’s woes continued, as the digital currency languished below $7,000.

U.S. Stocks Eke Out Latest Record on Positive Data: Markets Wrap

Here are some key events to watch for this week:

  • Policy decisions are due Thursday from the Bank of Japan and the Bank of England.
  • Federal Reserve district bank presidents including Eric Rosengren of Boston and John Williams of New York are scheduled to speak this week.
  • Revised U.S. GDP data are due Friday.
  • Friday brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

Stocks

  • The S&P 500 Index was little changed at 3,192.23 as of 4:00 p.m. New York time, hitting the highest on record with its fifth consecutive advance.
  • The Stoxx Europe 600 Index declined 0.7% to 414.92, the first retreat in a week and the biggest drop in more than two weeks.
  • The U.K.’s FTSE 100 Index gained 0.1% to 7,525.28, hitting the highest in almost 20 weeks with its fifth consecutive advance.
  • Germany’s DAX Index declined 0.9% to 13,287.83, the first retreat in a week and the biggest drop in more than two weeks.
  • The MSCI Emerging Market Index jumped 1.3% to 1,102.51, hitting the highest in 18 months with its fifth consecutive advance.

Currencies

  • The Bloomberg Dollar Spot Index climbed 0.2% to 1,194.79, the biggest increase in more than three weeks.
  • The euro was little changed at $1.1146, the strongest in more than six weeks.
  • The British pound sank 1.6% to $1.3123, the weakest in almost two weeks on the biggest tumble in 13 months.
  • The Japanese yen was little changed at 109.52 per dollar.

Bonds

  • The yield on 10-year Treasuries increased one basis point to 1.88%.
  • Germany’s 10-year yield declined two basis points to -0.30%.
  • Britain’s 10-year yield fell six basis points to 0.762%, the lowest in almost two weeks on the biggest fall in two weeks.

Commodities

  • West Texas Intermediate crude gained 1.1% to $60.89 a barrel, the highest in three months.
  • Gold was little changed at $1,475.96 an ounce.

©2019 Bloomberg L.P.

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