Stocks were little changed as traders weighed earnings from some of the largest American banks and comments from two Federal Reserve officials who favor continued rate hikes to fight inflation.
(Bloomberg) — Stocks were little changed as traders weighed earnings from some of the largest American banks and comments from two Federal Reserve officials who favor continued rate hikes to fight inflation.
The S&P 500 added 0.1%. The Cboe Volatility Index hit its lowest since January 2022, remaining below 17. Goldman Sachs Group Inc. fell as its results showed traders failed to capitalize on Wall Street’s fixed-income boom, contributing to firmwide revenue that trailed estimates. Bank of America Corp. rose after profit beat expectations.
In late trading, Netflix Inc. retreated as its subscriber growth and revenue outlook missed projections. United Airlines Holdings Inc. said that increasing international travel and lower operating costs will likely push its second-quarter profit above estimates. First Horizon Corp. reported deposits at end-period that missed the average analyst estimate.
“It’s so early in the reporting season, it’s really hard to make too much out of what’s going on,” said Tony Roth, chief investment officer at Wilmington Trust. More regional banks are due to report results in the coming days and weeks, and “that will give us a better sense of how they’re doing.”
Tesla Inc. declined ahead of its first-quarter results due after the market close Wednesday. Investors are focused on the electric automaker’s profit margins, which likely took a hit as the company slashed prices to spur demand throughout the quarter.
Two-year US yields, which are more sensitive to imminent policy moves, edged higher. Fed Bank of Atlanta President Raphael Bostic told CNBC he favors raising rates one more time and then holding them above 5% for some time to curb inflation. His St. Louis counterpart James Bullard separately told Reuters that he favors getting rates into a 5.5% to 5.75% range. The benchmark currently sits between 4.75% and 5%.
Bitcoin’s 2023 rebound has resumed after stalling around the closely watched $30,000 level.
Oil was little changed as the bullish impetus from OPEC+ production cuts faded against a backdrop of weaker-than-expected demand. Gold halted a two-day losing streak.
Key events this week:
- Eurozone CPI, Wednesday
- Fed releases Beige Book, Wednesday
- Fed’s John Williams gives a speech, Wednesday
- Fed’s Austan Goolsbee is interviewed on NPR, Wednesday
- China loan prime rates, Thursday
- Eurozone consumer confidence, Thursday
- US initial jobless claims, existing home sales, index of leading economic indicators, Thursday
- ECB issues report on March policy meeting, Thursday
- Fed’s Christopher Waller speaks at cryptocurrency-focused event, Thursday
- Fed’s Patrick Harker speaks on “monetary policy and housing”, Thursday
- Fed’s Loretta Mester discusses the economic and policy outlook, Thursday
- Fed’s Raphael Bostic discusses regional and national economic conditions, Thursday
- Fed’s Michelle Bowman and Lorie Logan speak at event, Thursday
- PMIs for Eurozone, Friday
- Japan CPI, Friday
- Fed’s Lisa Cook discusses economic research at an event, Friday
Some of the main moves in the market:
Stocks
- The S&P 500 was little changed as of 4 p.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average was little changed
- The MSCI World index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.4% to $1.0971
- The British pound rose 0.4% to $1.2426
- The Japanese yen rose 0.3% to 134.08 per dollar
Cryptocurrencies
- Bitcoin rose 2.6% to $30,211.05
- Ether rose 0.1% to $2,079.28
Bonds
- The yield on 10-year Treasuries declined two basis points to 3.58%
- Germany’s 10-year yield was little changed at 2.48%
- Britain’s 10-year yield advanced six basis points to 3.75%
Commodities
- West Texas Intermediate crude was little changed
- Gold futures rose 0.5% to $2,017 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cristin Flanagan, Vildana Hajric, Carly Wanna, Isabelle Lee and Peyton Forte.
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