Stocks Rise on Last Day of Best Quarter Since ‘98: Markets Wrap
Bloomberg – U.S. stocks rose on the final day of the best quarter since 1998 as traders assessed better-than-estimated consumer confidence data amid concern over new coronavirus infections.
After bottoming in the first quarter, the S&P 500 surged before turning almost flat in June. The gauge advanced Tuesday as a report showed the Conference Board’s index had its largest one-month gain since late 2011. Uber Technologies Inc. rallied on a news report that it’s in talks to buy Postmates Inc. Boeing Co. weighed on the Dow Jones Industrial Average after one of its biggest European customers scrapped a $10.6 billion purchase deal. The dollar rose. Treasuries were little changed.
Optimism has been shaken as accelerating virus cases threaten to set back reopenings and, with them, any economic progress. The Federal Reserve is preparing for the possibility of a second wave of infections, and lawmakers are likely to question Chairman Jerome Powell about a resurgence of the virus when he appears before the House Financial Services Committee with Treasury Secretary Steven Mnuchin at 12:30 p.m. Washington time.
“The downside has become more limited given how many investors missed the rebound, how many remain bearish and how much cash has been sitting on the sidelines,” wrote Esty Dwek, head of global market strategy for Natixis Investment Managers. “Coupled with abundant stimulus measures and liquidity, corrections are likely to be bought. That said, we remain prudent and believe it is too early to add a lot of risk to portfolios.”
The Nasdaq Composite Index is heading toward its biggest advance since the final period of 2001. Just as the S&P 500, the Dow Jones Industrial Average is set for its best quarter since 1998.
In terms of what’s ahead, “stocks moved into a second phase of recovery in June, where slower and choppier gains are more likely to occur as Fed-driven valuation expansion gives way to economic and earnings progress as the primary driver of returns,” said Bloomberg Intelligence’s Gina Martin Adams.
Traders also monitored news that Hong Kong for the first time banned its biggest annual protest march, a decision attributed to outbreak-control measures that comes after Chinese lawmakers approved sweeping national security legislation for the former British colony.
Here are some key events coming up:
- The monthly U.S. jobs report will be released on Thursday.
These are some of the main moves in markets:
- The S&P 500 increased 0.4% as of 10:28 a.m. New York time.
- The Dow Jones Industrial Average fell 0.1%.
- The Nasdaq Composite Index climbed 0.7%.
- The Stoxx Europe 600 Index declined 0.4%.
- The MSCI Asia Pacific Index advanced 0.8%.
- The Bloomberg Dollar Spot Index gained 0.1%.
- The euro fell 0.2% to $1.1215.
- The Japanese yen was little changed at 107.63 per dollar.
- The yield on 10-year Treasuries declined less than one basis point to 0.62%.
- Germany’s 10-year yield declined one basis point to -0.48%.
- Britain’s 10-year yield fell two basis points to 0.144%.
- The Bloomberg Commodity Index gained 0.4%.
- West Texas Intermediate crude fell 1.7% to $39.02 a barrel.
- Gold was little changed at $1,781.90 an ounce.