Stocks rose as traders sifted through earnings from some of the largest American banks while data showed China’s economy grew at the fastest pace in a year in the first quarter. Bond yields fell.
(Bloomberg) — Stocks rose as traders sifted through earnings from some of the largest American banks while data showed China’s economy grew at the fastest pace in a year in the first quarter. Bond yields fell.
The S&P 500 advanced 0.4%. Bank of America Corp. wavered as profit beat estimates after its debt traders delivered a windfall large enough to cover the rising cost of the lender’s souring loans. Goldman Sachs Group Inc. fell 2.8% as traders failed to capitalize on the fixed-income bonanza the rest of Wall Street generated last quarter, contributing to firmwide revenue that fell short of analysts’ estimates.
“This is a boom/bust US cycle and we’re getting closer to the bust part,” wrote Deutsche Bank’s Jim Reid. “However, I doubt big banks will be at the epicenter of it as a lot has positively changed in their fundamentals. So a retreat from peak financial pessimism makes sense.”
Federal Reserve Bank of St. Louis President James Bullard said the central bank should keep raising interest rates after recent data showed inflation remains persistent, Reuters reported.
BlackRock Inc. said it expects institutional investors to increase allocations to private equity and private credit funds this year even amid recession fears and rising interest rates. Bank of New York Mellon Corp. reported total deposits for the end of the first quarter that beat analyst estimates. Johnson & Johnson raised its 2023 earnings forecast.
Bitcoin’s 2023 rebound has resumed after stalling around the closely watched $30,000 level, despite the latest US crypto crackdown and a more sober assessment of the outlook for Federal Reserve monetary policy.
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 rose 0.4% as of 9:42 a.m. New York time
- The Nasdaq 100 rose 0.7%
- The Dow Jones Industrial Average fell 0.1%
- The Stoxx Europe 600 rose 0.5%
- The MSCI World index rose 0.4%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro rose 0.3% to $1.0954
- The British pound rose 0.4% to $1.2430
- The Japanese yen rose 0.2% to 134.18 per dollar
Cryptocurrencies
- Bitcoin rose 3.1% to $30,376.55
- Ether rose 1.7% to $2,112.55
Bonds
- The yield on 10-year Treasuries declined three basis points to 3.57%
- Germany’s 10-year yield declined one basis point to 2.46%
- Britain’s 10-year yield advanced four basis points to 3.73%
Commodities
- West Texas Intermediate crude fell 0.4% to $80.48 a barrel
- Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Cristin Flanagan, Vildana Hajric and Carly Wanna.
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