Stocks turn mixed on results, Treasuries gain with bonds

Bloomberg

US stocks were mixed as investors mulled weak economic data and mixed corporate results, including an unexpected quarterly loss for Boeing. Treasuries advanced along with bonds in Europe.
In addition to Boeing, Caterpillar weighed on the Dow Jones Industrial Average after the equipment maker projected earnings at the low end of forecasts. UPS helped to keep the S&P 500 near positive territory after exceeding its profit guidance. European bond yields dropped to unprecedented lows as disappointing manufacturing data added to concerns about the region’s growth
and bolstered expectations for more central bank accommodation, including by the Federal Reserve.
“The Fed backdrop is providing some cushion so-to-speak,” Nancy Perez, senior portfolio manager at Boston Private Wealth, said.
Broadly positive earnings reports had buoyed stocks this so far week, though Deutsche Bank’s woes and flagging demand reported by carmakers and other manufacturers gave investors a reminder of the uncertain outlook for the global economy. To add to that, the US Justice Department opened a broad probe into whether dominant technology firms are unlawfully stifling competition, hitting shares of Amazon, Facebook and Alphabet.
Central banks remain in focus after the IMF revised its forecasts for global growth lower and the Federal Reserve is seen trimming its policy rate by a quarter percentage point next week. The European Central Bank may hold fire tomorrow, though its message will be closely parsed for signs of a September move as the poor economic data ramp up pressure to deliver stimulus.
Elsewhere, Britain’s pound rebounded from a two-year low following Boris Johnson’s victory in the contest to succeed Theresa May as UK prime minister, though the nation’s equity benchmark underperformed. The dollar dropped for the first time in four days.
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.
The S&P 500 Index rose less than 0.1% in New York. The Nasdaq Composite Index rose 0.2% and the Dow Jones Industrial Average eased 0.5%.
The Stoxx Europe 600 rose 0.1%, the fourth straight increase.
The MSCI Emerging Market Index was little changed. The MSCI Asia Pacific Index rose 0.2%.
The Bloomberg Dollar Spot Index dropped 0.2%, the first drop in four days.
The euro was little changed at $1.1153, while the yen strengthened 0.2% to 108 per dollar.
The British pound rose 0.5% to $1.2499, the first increase in four days. The MSCI Emerging Markets Currency Index rose 0.1%.
The yield on 10-year Treasuries dropped 4 basis points to 2.04%. Germany’s 10-year yield fell 3 basis points to -0.39%. Britain’s 10-year yield fell 2 basis points to 0.67%.