U.S. Stocks Mixed as Investors Focus on Stimulus: Markets Wrap

 

 

Here are some key events coming up:

• U.S. data due Tuesday on June factory orders.
• Euro-zone PMI reports are scheduled for Wednesday.
• Reserve Bank of India and Bank of England rate decisions due Thursday.
• Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
• July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:

Stocks

• The S&P 500 Index was little changed as of 12:19 p.m. New York time.
• The Stoxx Europe 600 Index fell 0.1%.
• The MSCI Asia Pacific Index increased 1.9%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro rose 0.1% to $1.1775.
• The Japanese yen was little changed at 105.9 per dollar.

Bonds

• The yield on 10-year Treasuries decreased three basis points to 0.52%.
• Britain’s 10-year yield fell three basis points to 0.071%.
• Germany’s 10-year yield dipped three basis points to -0.56%.

Commodities

• West Texas Intermediate crude rose 0.7% to $41.31 a barrel.
• Gold rose 1.2% to $2,000.17 an ounce.
• Copper fell 0.6% to $2.8935 per pound.

U.S. equities were mixed as traders speculated about whether lawmakers will move forward on a stimulus bill.

The S&P 500 Index fluctuated between small gains and losses, with energy producers outperforming as crude climbed. Financial shares suffered as American International Group Inc. fell after posting a $7.9 billion loss. Shares dipped in Europe, with Diageo Plc tumbling after the drinks giant provided no 2021 guidance.

Treasuries climbed. Argentina’s overseas notes rallied after the government reached a $65 billion restructuring deal with creditors.

With the S&P 500 less than 3% off its pre-pandemic high, U.S. equity investors are closely monitoring efforts in Washington to negotiate a new virus relief package that many see as key to keeping the economy afloat. The pressure is building, with the Senate set to leave on a break Friday, when crucial jobs data is due.

 

“We see U.S. stocks at risk of fading fiscal stimulus,” BlackRock Investment Institute strategists led by Mike Pyle wrote in a note. “U.S. employment figures are in focus this week as this fiscal cliff nears and the pandemic’s spread in Sunbelt states is starting to affect economic activity.”

West Texas-grade crude oil rose past $41 a barrel after the biggest gain in almost two weeks Monday. Spot gold reached an intraday record.