Stocks, bonds and the dollar posted small moves at the start of a week that will bring key inflation gauges, a slew of Federal Reserve speakers and the beginning of the US earnings season.
(Bloomberg) — Stocks, bonds and the dollar posted small moves at the start of a week that will bring key inflation gauges, a slew of Federal Reserve speakers and the beginning of the US earnings season.
Following a three-day slide that drove the S&P 500, the equity gauge fluctuated near its 4,400 level on Monday. Momentum has slowed since the market notched a strong first-half rally as concern resurfaced about the impact of the many economic crosscurrents on corporate profits.
A growing chorus of Wall Street strategists is telling investors this earnings season won’t likely be able to fuel fresh gain. Morgan Stanley’s Michael Wilson — one of the most bearish voices on stocks — became the latest to warn that forecasts will matter more than usual this time around given elevated equity valuations, higher interest rates and dwindling liquidity.
“It’s going to be harder for the market to rally if all we get is an earnings season that is ‘not as bad as we thought’, especially since the market has become so expensive,” said Matt Maley, chief market strategist at Miller Tabak + Co.
The market didn’t get much support from the megacap space at the start of the week. Amazon.com Inc. fell on speculation that its annual Prime Day event won’t likely be the driver it used to be for the stock. Facebook’s parent Meta Platforms Inc. bucked the trend, rallying toward its highest since February 2022.
Key events this week:
- St. Louis Fed President James Bullard speaks, Tuesday.
- Canada rate decision, Wednesday.
- Bank of England Governor Andrew Bailey speaks, Wednesday.
- US CPI, Wednesday.
- Federal Reserve issues Beige Book, Wednesday.
- Fed speakers include Neel Kashkari, Loretta Mester, Raphael Bostic, Wednesday.
- China trade, Thursday.
- Eurozone industrial production, Thursday.
- US initial jobless claims, PPI, Thursday.
- US University of Michigan consumer sentiment, Friday.
- US banks kick off earnings, Friday.
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.1% as of 9:43 a.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average rose 0.3%
- The Stoxx Europe 600 rose 0.3%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.1% to $1.0954
- The British pound fell 0.5% to $1.2772
- The Japanese yen rose 0.2% to 141.89 per dollar
Cryptocurrencies
- Bitcoin rose 0.4% to $30,307.4
- Ether was little changed at $1,867.71
Bonds
- The yield on 10-year Treasuries declined two basis points to 4.04%
- Germany’s 10-year yield was little changed at 2.64%
- Britain’s 10-year yield was little changed at 4.65%
Commodities
- West Texas Intermediate crude fell 0.4% to $73.53 a barrel
- Gold futures fell 0.3% to $1,926.30 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Brett Miller, Tassia Sipahutar, Robert Brand, Vildana Hajric and Carly Wanna.
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