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Bloomberg
The latest batch of corporate earnings whipsawed US stocks as investors sought clues on the strength of the economy after a likely slowdown in the first quarter. The 10-year Treasury yield pushed above 2.6 percent.
The S&P 500 Index erased early gains, with healthcare shares again under pressure as concerns mount over potential policy changes.
Netflix Inc advanced even after a weak subscriber forecast and Qualcomm Inc surged to a 2014 high after settling with Apple over royalties, pushing the Nasdaq 100 Index to an all-time intraday record.
Morgan Stanley was little changed and Bank NY Mellon plunged after reporting results, pushing financial shares lower. PepsiCo rose after posting solid results, while CSX Corp and Kansas City Southern lifted transportation stocks.
IBM Corp dragged the Dow Jones Industrial Average lower after sales slumped. Sprint Corp fell on reports its merger with T-Mobile US Inc was said to be in doubt.
Data overnight showing China’s economic growth, industrial production and retail sales all topped estimates boosted equities around the world. The Stoxx Europe 600 Index erased a drop, while shares rose in Japan and Shanghai.
The yield on 10-year Treasuries climbed to a four-week high and the dollar stayed lower after the US trade gap unexpectedly narrowed. European debt also dropped, while the euro strengthened even as Germany’s economy ministry revised its growth forecast lower.
As earnings continue to pour in, investors are growing more confident the anticipated drop in first-quarter results won’t spoil the year. At the same time, central banks around the world remain accommodative, and the latest Chinese data appears to have calmed jitters that the world’s second-largest economy was headed for a slowdown.
Elsewhere, oil climbed after data showed a surprise drop in crude inventories.
The New Zealand dollar retreated after inflation slowed more than forecast, while the Australian dollar rose after the Chinese data.
Earnings season rolls on this week, with reports due from American Express, Honeywell, Alcoa and Taiwan Semiconductor among others. A swathe of financial markets will close across the Western world for the Good Friday holiday, including in the US, UK and Germany.
The S&P 500 added 0.1 percent in New York. The Dow Jones Industrial Average lost 0.2 percent, while the Nasdaq 100 rose 0.6 percent. The Stoxx Europe 600 Index advanced
0.3 percent. The MSCI All-Country World Index increased 0.1 percent to the highest in more than six months. The MSCI Emerging Market Index jumped 0.4 percent to the highest in 10 months.
The Bloomberg Dollar Spot Index dipped 0.1 percent. The euro gained 0.2 percent to $1.1307, the strongest in more than three weeks. The British pound climbed less than 0.05 percent to $1.3051. The Japanese yen rose less than 0.05 percent to 111.99 per dollar.
The yield on 10-year Treasuries climbed two basis points to 2.61 percent, the highest in more than four weeks. Germany’s 10-year yield rose two basis points to 0.08 percent. Britain’s 10-year yield rose two basis points to 1.237 percent. Japan’s 10-year yield rose two basis points to -0.006 percent.
West Texas Intermediate crude increased 0.6 percent to $64.43 a barrel, the highest in a week. Gold fell 0.1 percent to $1,275.75 an ounce, hitting the weakest in almost 16 weeks with its fifth consecutive decline.
The Bloomberg Commodity Index climbed 0.3 percent.