(Bloomberg) -- Stocks rose and bond yields fell, with traders weighing the latest economic readings and big banks kicking off the earnings season.
The S&P 500 hovered near 5,600 after sliding almost one per cent in the previous session. Smaller firms continued to outperform megacaps. Banks got hit. Wells Fargo & Co. warned it won’t be able to whittle away costs as fast as forecast. JPMorgan Chase & Co. missed on a few key metrics like net interest income — despite posting record profit. Citigroup Inc. said costs for the year are likely to be at the high end of the range previously provided.
Traders looked past data showing U.S. producer prices climbed slightly more than forecast — as categories that are used to calculate the U.S. Federal Reserve’s preferred inflation measure, the personal consumption expenditures price index, were not that bad.
Treasury 10-year yields declined two basis points to 4.19 per cent. The pound is trading at its strongest level in a year versus the U.S. dollar and the highest in almost two years against the euro. Japan likely stepped into currency markets prop up the yen soon after U.S. inflation figures came out Thursday, according to a Bloomberg analysis of central bank accounts.
Corporate highlights:
• AT&T Inc. suffered a massive hack of customer data — separate from one reported earlier this year — that included records of calls and texts for nearly all of its mobile-phone users for a six-month period in 2022, one of the biggest breaches of private communications data in recent memory.
• Boeing Co. has notified some 737 Max customers in recent weeks that aircraft due for delivery in 2025 and 2026 face additional delays, another reminder that production of its cash-cow jetliner faces a long road to recovery.
• Deutsche Lufthansa AG cut its profit outlook for the full year and warned that breaking even at its namesake German unit will be “increasingly challenging” as it grapples with higher unit costs and falling ticket prices.
• Rio Tinto Group is studying proposals for potential bids for companies including Teck Resources Ltd., Sky News reported, citing people it didn’t identify.
• Novo Nordisk A/S’s Ozempic was linked to lower rates of dementia and a range of other mental problems in a University of Oxford study that raises expectations about the diabetes drug’s potential ancillary benefits.
• Samsung Electronics Co.’s largest union is now calling on employees at one of the company’s most advanced AI memory chip plants to walk off the job, switching tactics after their campaign for higher pay showed signs of losing steam.
• Taiwan Semiconductor Manufacturing Co.’s US$420 billion equity rally this year will get a valuation test next week when it reports earnings, with analysts expecting the chipmaker to raise full-year sales forecasts.
Some of the main moves in markets:
Stocks
• The S&P 500 rose 0.5% as of 10:01 a.m. New York time
• The Nasdaq 100 rose 0.7%
• The Dow Jones Industrial Average rose 0.3%
• The Stoxx Europe 600 rose 0.7%
• The MSCI World Index rose 0.5%
Currencies
• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.3% to $1.0896
• The British pound rose 0.5% to $1.2974
• The Japanese yen rose 0.3% to 158.34 per dollar
Cryptocurrencies
• Bitcoin rose 0.7% to $57,928.58
• Ether rose 0.3% to $3,125.23
Bonds
• The yield on 10-year Treasuries declined two basis points to 4.19%
• Germany’s 10-year yield advanced three basis points to 2.49%
• Britain’s 10-year yield advanced three basis points to 4.11%
Commodities
• West Texas Intermediate crude rose 0.3% to $82.89 a barrel
• Spot gold fell 0.5% to $2,404.11 an ounce
This story was produced with the assistance of Bloomberg Automation.
©2024 Bloomberg L.P.
