Stocks Gain Amid Earnings Optimism; Oil Advances: Markets Wrap - Yahoo Finance

Tech Shares Gain Ahead of Earnings; Oil Advances: Markets Wrap

(Bloomberg) -- Technology shares led gains among U.S. stocks following a mixed session in Europe and Asia as investors looked ahead to a busy week of corporate earnings. Oil gained amid tensions in the Persian Gulf.

Apple rallied after Morgan Stanley boosted its price target, while Micron Technology was lifted to buy from neutral by Goldman, as were Lam Research and Applied Materials. The Dow Jones Industrial Average turned negative. Stocks slipped throughout Asia, led by declines in Shanghai and Hong Kong as traders watched escalating tensions there. Treasuries advanced after traders pared bets the Federal Reserve will slash rates by a half-point this month.

“With consensus analysis having slashed projections for the quarter before the start of the earnings season there’ll likely be a decent chance for enough positive surprises over the course of the next few weeks to see earnings growth stay positive over the season,” John Stoltzfus, the chief investment strategist at Oppenheimer & Co., wrote in a note to clients. “More than a quarter of the companies in the S&P 500 are scheduled to report this week so investors will have plenty to focus on.”

Oil rose again, heading for its biggest gain in more than a week, after Iran’s seizure of a British tanker fanned concerns of a confrontation that could disrupt Middle East supplies.

Core European government bonds gained, while the pound slumped after a forecast showed Brexit may have already pushed the U.K. into a technical recession, and as Conservative Party members vote on new leadership.

Investors will be eyeing earnings this week for signs of economic slowdown and any indication that trade strife is affecting companies’ bottom lines. On the trade front, Chinese state media reported face-to-face negotiations with the U.S. may resume soon, as Beijing considers a plan to boost American soybean purchases to sweeten a deal, people familiar with the matter said. The Fed, meanwhile, is in a blackout period with regard to policy communications ahead of next week’s interest rate decision.

Elsewhere, gold was steady while emerging-market stocks slid.

Here are some key events coming up:

Earnings season rolls on with companies including: Amazon.com, Alphabet, Unilever, Caterpillar, Coca-Cola, McDonald’s and Boeing.U.K. Prime Minister Theresa May’s successor is announced on Tuesday, with Boris Johnson expected to become the new Conservative leader and PM.Thursday brings the European Central Bank policy decision. Economists widely expect officials to signal their readiness to cut interest rates and potentially broaden stimulus. Some see the chance of an immediate rate cut. ECB President Mario Draghi holds a briefing afterward.

These are the main moves in markets:

Stocks

The S&P 500 Index rose 0.2% as of 10:30 a.m. New York time. The Nasdaq Composite Index gained 0.6% and the Dow Jones Industrial Average eased less than 0.1%.The Stoxx Europe 600 rose less than 0.1%.The MSCI Emerging Market Index eased 0.3%.The MSCI Asia Pacific Index dropped 0.5%.

Currencies

The Bloomberg Dollar Spot Index rose less than 0.1%.The euro was little changed at $1.1222, while the yen weakened 0.2% to 107.93 per dollar. The British pound fell 0.2% to $1.2472.The MSCI Emerging Markets Currency Index was little changed.

Bonds

The yield on 10-year Treasuries eased 2 basis points to 2.04%.Germany’s 10-year yield dropped 2 basis points to -0.34%.Britain’s 10-year yield fell 1 basis point to 0.72%.

Commodities

West Texas Intermediate rose 0.7% to $56 a barrel. Gold increased 0.1% to $1,426 an ounce. The Bloomberg Commodity Index was little changed.

To contact the reporters on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka

For more articles like this, please visit us at bloomberg.com

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2019-07-22 14:06:00Z
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