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.”
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.
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:
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