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Bloomberg
US stocks edged higher as Apple Inc’s upbeat sales projection boosted technology shares, while Treasuries climbed before the Federal Reserve’s decision.
The S&P 500 Index looked for a fourth day of gains and a fresh record and tech-heavy Nasdaq indexes outperformed as the iPhone maker again closed in on a $1 trillion market valuation. Advanced Micro Devices Inc’s outlook padded the gains. Weak results from other major companies, including Clorox Co and Automatic Data Processing Inc, weighed on broader equity measures. The dollar was set for its longest slide since August. Oil slumped as a report showed US crude stockpiles increased.
Just ahead of the Fed’s verdict on rates, data showed that a gauge of US factories fell in April to the weakest since 2016. The report weighed briefly on stocks after an almost 18 percent surge in the equity benchmark this year sparked calls for a pause. All eyes will now turn to Fed Chairman Jerome Powell’s press conference following the decision, with policy makers widely expected to be on hold while expressing concern over muted inflation.
“There’s a lot of discussion about inflation being a potential boogeyman the Fed wants to get ahead of,†said Marvin
Loh, global macro strategist at State Street.
Developments in the trade conflict between America and China are on the radar, with US Treasury Secretary Steven Mnuchin calling the latest round of meetings “productive.†Negotiations will continue in Washington next week. Elsewhere, holidays across much of Asia, Europe and Latin America crimped trading volumes.
Companies reporting earnings include: HSBC, Macquarie and Royal Dutch Shell. The Bank of England sets interest rates on Thursday. Friday brings the US jobs report: non-farm payrolls are projected to rise by 187,000 in April. Economists expect
an unemployment rate of 3.8 percent, with average hourly earnings growth picking up to 3.3 percent.
The S&P 500 Index rose 0.1 percent to 2,947.40 in New York. The Stoxx Europe 600 Index dipped 0.1 percent to 391.03. The MSCI Asia Pacific Index gained 0.3 percent to 162.77. The Bloomberg Dollar Spot Index decreased 0.1 percent, its fifth straight drop. The euro gained 0.2 percent to $1.1241. The British pound advanced 0.4 percent to $1.3081. The Japanese yen increased 0.2 percent to 111.17 per dollar.
The yield on 10-year Treasuries declined three basis points to 2.47 percent. Germany’s 10-year yield climbed one basis point to 0.01 percent. Britain’s 10-year yield fell to 1.153 percent.