US stocks rise above record in data-rich week; oil slips

Bloomberg

US stocks rose above their record high at the start of a week packed with data that will provide clues on global economic growth. Treasury yields and the dollar climbed, while oil fell.
Financial and industrial companies led gains in the S&P 500 Index as traders also awaited earnings reports from giants including Alphabet Inc, General Motors Co and Apple Inc. The Stoxx Europe 600 Index fluctuated as data showed euro-area economic confidence at a two-year low. Crude extended losses after US President Donald Trump renewed his push for lower prices and Russia said it would soon resolve a problem with contaminated supplies.
Investors are assessing whether the economy and corporate earnings will continue to support the equity bull run. US consumer spending rebounded in March while the Federal Reserve’s preferred underlying inflation gauge eased to a one-year low, according to a Commerce Department report. Policy makers are expected to hold rates steady on Wednesday, though new growth and prices data may affect their characterisation of the economy.
The next round of China-US trade talks will get under way this week with significant issues still unresolved but
with enforcement mechanisms “close to done,” US Treasury Secretary Steven Mnuchin said.
“There’s a lot of things from a macro standpoint that appear to be pretty supportive of
the stock market,” said Mark Stoeckle, chief executive officer of Adams Funds, which has about $2.5 billion in assets under management.
“The Fed pivoted and trade, at least on the surface, appears to be progressing in the right direction. In addition to that, you see a lot of companies that are reporting some pretty good numbers.”
Elsewehere, Spain’s benchmark stock index underperformed as Socialist Pedro Sanchez looked set to return as the country’s prime minister after snap elections. Markets in Japan remained shut for holidays, with many others set to follow suit on May 1.
Companies reporting earnings include: Apple, Alphabet, GE, Pfizer, HSBC, Macquarie, BP, Royal Dutch Shell, and McDonald’s. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin travel to Beijing to continue trade talks. China and the US hope to seal a deal by early May. Euro-zone GDP data and China’s manufacturing PMI are due on Tuesday.
The US Fed’s rate decision is on Wednesday, while the Bank of England sets interest rates on Thursday.
Friday brings the US jobs report: non-farm payrolls are projected to rise by 188,000 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 increased 0.1 percent to 2,943.13 in New York. The Stoxx Europe 600 Index rose less than
0.1 percent. The MSCI Asia Pacific Index gained 0.2 percent. The MSCI Emerging Market Index climbed 0.4 percent.
The Bloomberg Dollar Spot Index advanced 0.2 percent. The euro increased less than 0.1 percent to $1.1153. The British pound was little changed at $1.291. The Japanese yen fell 0.2 percent to 111.85 per dollar.
The yield on 10-year Treasuries rose two basis points to 2.52 percent. Germany’s 10-year yield climbed two basis points to 0.00 percent. Britain’s 10-year yield increased one basis point to 1.155 percent.
The Bloomberg Commodity Index declined 0.4 percent. West Texas Intermediate crude fell 0.6 percent to $62.90 a barrel. Gold retreated 0.6 percent to $1,280.60 an ounce.