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U.S. Stocks Edge Higher as Investors Weigh Trade: Markets Wrap

Randall Jensen and Claire Ballentine
U.S. Stocks Edge Higher as Investors Weigh Trade: Markets Wrap

(Bloomberg) -- U.S. stocks edged higher as investors measured the likelihood of a partial trade deal between America and China. The dollar and Treasuries advanced.

The S&P 500 eked out a gain after retreating from a record as remarks by President Donald Trump didn’t add much insight into negotiations between the world’s two largest economies. He did say a deal could happen soon, but he also said no agreement would mean significant tariff increases. Earlier, the benchmark pushed through 3,100 for the first time partly on hopes the president would make positive comments on trade.

In company news, Facebook Inc. surged as it announced a new payment feature, and Walt Disney Co. rose after its much-anticipated streaming service debuted. Health care shares paced the advance as drugmaker AbbVie Inc. gained amid what may be the largest bond sale of the year.

The 10-year Treasury yield fell to 1.91% before Federal Reserve Chairman Jerome Powell addresses Congress Wednesday. The dollar rose for the sixth time in seven sessions, testing its moving average of the last 100 days. Crude edged lower.

“The rough edges of a deal are there, I think the market understands that. I didn’t see anything in the speech that would make me change my mind on that,” said Michael Antonelli, managing director and market strategist at Robert W. Baird & Co. “Optimism over some bigger deal is probably cooling off at the margin.”With most earnings now out of the way and major central banks thought to be on hold, investor focus has turned firmly to trade. Hopes for a first-phase deal between the U.S. and China fueled a risk rally and bond sell-off last week, before Trump’s comments over the weekend cooled some of the optimism.

Elsewhere, the yen rose along with gold. Nickel headed for its longest run of losses in almost a year.

Here are some key events coming up this week:

Earnings season is slowing. Reports are due this week from companies including Tencent, Japan Post Bank, Walmart, Cisco and Mitsubishi UFJ.A New Zealand rate decision is due Wednesday, with market pricing tilting in favor of a cut.Fed Chairman Jerome Powell addresses the Joint Economic Committee of Congress in Washington Wednesday. Thursday brings China retail sales and industrial production data.U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.

These are the main moves in markets:

Stocks

The S&P 500 Index rose 0.2% as of 4 p.m. New York time.The Stoxx Europe 600 Index gained 0.4%.The MSCI Asia Pacific Index rose 0.4%.The MSCI Emerging Market Index climbed 0.1%.

Currencies

The Bloomberg Dollar Spot Index gained 0.2%.The euro decreased 0.2% to $1.1009.The British pound fell less than 0.1% to $1.2851.The Japanese yen rose at 109.08 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 1.91%.Germany’s 10-year yield fell less than one basis point to -0.252%.Britain’s 10-year yield was unchanged at 0.807%.

Commodities

Gold gained 0.2% at $1,459.17 an ounce.West Texas Intermediate crude fell 0.1% to $56.80 a barrel.

--With assistance from Sophie Caronello.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Samuel Potter, Yakob Peterseil

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