US futures advanced with stocks as investors assessed earnings reports and US jobless claims that rose more than expected.
(Bloomberg) — US futures advanced with stocks as investors assessed earnings reports and US jobless claims that rose more than expected.
Contracts on U.S. gauges signaled a rebound from Wednesday’s equity losses, with those on the S&P 500 extending gains slightly after the labor report. Tesla Inc. climbed in premarket trading, with shares set to double from a January low. Walt Disney Co. surged on better-than-expected results and a restructuring plan that includes job cuts and cost savings.
Robinhood Markets Inc. rose after an earnings beat, while toymaker Mattel Inc. fell as its outlook disappointed.
Positive results from Siemens AG and AstraZeneca Plc buoyed European equities. Chinese and Hong Kong shares boosted a gauge of Asian stocks. The yield on 10-year Treasuries ticked lower and an index of the dollar weakened.
A string of Federal Reserve officials this week reiterated that interest rates will need to keep rising to curb inflation, taking the edge off market optimism. Earnings are also in focus, with bumper share buybacks a highlight of the season.
“Investors are shaking off another case of the jitters over how far interest rates will go in the United States, as a raft of better than expected corporate results came in after the bell,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
After this week’s hawkish chorus, Fed-funds futures markets are pricing in higher rates, with some options traders betting the US policy benchmark will reach 6%.
“I don’t think the Fed will cut within this year,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, said on Bloomberg Television. “The Fed was behind the curve in terms of putting up their interest rate and they certainly are going to be very slow in cutting the interest rate.”
Among other notable movers, Credit Suisse Group AG slid after warning it expects a substantial loss this year. Standard Chartered Plc climbed after people familiar with the matter said First Abu Dhabi Bank PJSC is pressing ahead with a potential offer for the firm.
Shares in Adani Enterprises Ltd. fell, snapping a two-day rally after MSCI Inc. said it was reviewing the amount of Adani Group-linked shares that were freely tradable in public markets.
Elsewhere, oil paused gains after rallying about 7% over the previous three sessions.
Key events:
- US University of Michigan consumer sentiment, Friday
- Fed’s Christopher Waller and Patrick Harker speak, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.8% as of 8:33 a.m. New York time
- Nasdaq 100 futures rose 1.2%
- Futures on the Dow Jones Industrial Average rose 0.7%
- The Stoxx Europe 600 rose 1%
- The MSCI World index rose 0.4%
Currencies
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.6% to $1.0775
- The British pound rose 0.8% to $1.2172
- The Japanese yen rose 0.6% to 130.64 per dollar
Cryptocurrencies
- Bitcoin fell 0.9% to $22,741.89
- Ether fell 0.8% to $1,640.29
Bonds
- The yield on 10-year Treasuries declined three basis points to 3.57%
- Germany’s 10-year yield declined 10 basis points to 2.26%
- Britain’s 10-year yield declined eight basis points to 3.23%
Commodities
- West Texas Intermediate crude fell 1.1% to $77.63 a barrel
- Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Tassia Sipahutar, Richard Henderson and Michael Msika.
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