US stocks rise with dollar as commodities climb

Bloomberg

US stocks rose to records as retailer results topped estimates, while the dollar resumed its advance amid fresh signs global growth has started to accelerate. Treasuries erased losses.
The S&P 500 Index rose after results from Home Depot Inc. and Wal-Mart Stores Inc. bolstered confidence the American consumer can stoke growth. European equities advanced after readings on euro-area manufacturing topped estimates and mining companies rallied. Dollar bulls were handed the baton after a Federal Reserve policy maker reinforced the chances for a US interest-rate increase as soon as next month. Gold slumped and oil breached $54 a barrel.
The prospect of tightening monetary policy helped stoke the dollar, which has been trading below this year’s highs as investors clamor for detail on spending plans under US President Donald Trump. Equity markets, meanwhile, have gone from strength to strength on growth optimism and amid the greenback’s weakness.
“For all the Trump variables in the air the dollar has been played out primarily through rate expectations since the election,” said Adam Cole, the head of global foreign-exchange strategy in London at Royal Bank of Canada.
Here are some events that investors are watching out for:
The Fed releases minutes this week from its most recent meeting, possibly giving investors a look into how members see Trump’s policies. Data should show the US housing market perking up at the start of the year. The PMI is expected to rise slightly. It’s International Petroleum Week in London and top OPEC, government and company officials are attending.
Here are the main market moves:

Stocks
The S&P 500 climbed 0.4 percent at 11:45 a.m in New York, its ninth gain in the past 10 sessions. The measure pared gains as bonds reversed losses in late-morning trading. Home Depot added 1.2 percent and Wal-Mart was up 2.7 percent. The Stoxx Europe 600 index advanced 0.5 percent. Banking stocks fell after HSBC missed earnings estimates and said it will boost cost-cutting measures and extend a stock buyback.
Asian stock rose, with South Korea’s benchmark climbing 0.9 percent to the highest level since July 2015. Hong Kong’s Hang Seng slipped 0.8 percent, the most in more than a month.

Currencies
The Bloomberg Dollar Spot Index gained 0.4 percent. The greenback rose after Market News International cited Philadelphia Fed President Patrick Harker, who votes on policy this year, saying a rate move next month is not “off the table at this point.” That followed hawkish congressional testimony last week from Fed Chair Janet Yellen. The euro weakened 0.7 percent. Sterling was 0.4 percent weaker following Bank of England Governor Mark Carney’s appearance at a Treasury Select Committee hearing on February’s Inflation Report.

Bonds
The yield on 10-year Treasuries was little changed at 2.42 percent after earlier adding four basis points to 2.46 percent. German benchmark yields rose three basis points after better-than-expected PMI euro- area manufacturing data. The yield on the equivalent French bonds also climbed three basis points.

Commodities
US natural gas extended its decline into a third day due to forecasts for warmer-than-normal weather across the east coast. Futures fell 3.1 percent to $2.745 per million British thermal units. Oil advanced as Citigroup Inc. raised its short-term price outlook, citing good OPEC compliance with its output-cut agreement and growing demand in Asia. West Texas Intermediate gained 1.9 percent to $54.39 a barrel and Brent added 1.5 percent.