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Stocks Pare Advance as Banks Drop; Bonds Fall: Markets Wrap
(Bloomberg) — Stocks pared gains as a drop in banks and offset an advance in retailers and technology companies. Treasuries fell, while the dollar fluctuated.In a volatile session, the S&P 500 struggled to hold onto gains as giants such as Bank of America Corp. and Citigroup Inc. slumped at least 1.5%. The KBW Bank Index halted a rally that drove the financial gauge up more than 10% in three days. The Nasdaq 100 outperformed as Tesla Inc. surged for an 11th straight session. Earlier Friday, equities climbed after data showing a sharp slowdown in U.S. hiring bolstered speculation on further stimulus to revive economic growth.In a week marked by a siege of the U.S. Capitol and Democratic sweep of Congress, all major U.S. equity benchmarks notched records as investors focused on the prospect for more fiscal aid. While economists expect vaccinations will lead to a faster pace of job growth in the second quarter, the intervening months could bring more labor-market pain until many more Americans are inoculated. Several analysts Friday’s said the gloomy economic data could raise prospects for another round of stimulus — on the heels of the $900 billion package approved last month — following Democrats’ victories in Georgia runoff elections that gave the party control of the Senate.“It’s hard to ignore the staggering drop in jobs from December, but if past is prologue, the market is poised to shrug off the disappointing data in the face of the vaccine rollout, strong likelihood of stimulus and an accommodative Fed,” said Mike Loewengart, managing director of investment strategy at E*Trade Financial. “Despite a stagnating labor market, investors are looking ahead, and at least when it comes to the market, the future appears bright.”Read: Top U.S. Banks’ Tax Bill Would Rise $11 Billion With Biden HikeThe U.S. suffered more than 4,000 coronavirus deaths in a single day for the first time as the pandemic picks up pace. London declared a “major incident” due to a surging number of cases. The UK. toughened rules for inbound travelers, while Germany reported the most daily fatalities since the start of the pandemic.The Russell 2000 Index of small caps is heading toward its best week against the S&P 500 since April. “Technically, the group is near-term overbought,” said Chris Harvey, head of equity strategy at Wells Fargo Securities. “Intermediate term, valuation is attractive and we think it’ll be a good earnings season for Russell 2000 stocks.”These are some of the main moves in markets:StocksThe S&P 500 rose 0.2% as of 11:23 a.m. New York time.The Stoxx Europe 600 Index advanced 0.7%.The MSCI Asia Pacific Index gained 1.8%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The euro decreased 0.3% to $1.223.The Japanese yen depreciated 0.2% to 104 per dollar.BondsThe yield on 10-year Treasuries climbed two basis points to 1.10%.Germany’s 10-year yield declined less than one basis point to -0.52%.Britain’s 10-year yield advanced one basis point to 0.291%.CommoditiesWest Texas Intermediate crude gained 1.4% to $51.52 a barrel.Gold lost 3.2% to $1,853.66 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
