(Bloomberg) — Bond yields remained lower after the Treasury increased its quarterly debt sale — but suggested no more boosts are coming. Tech giants weighed on stock futures as earnings failed to live up to high expectations around artificial intelligence.
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Just hours away from the Fed decision, a relief from further boosts to auction sizes for longer-term securities is seen helping support demand for Treasuries. Bonds also gained as a broad gauge of US labor costs cooled by more than forecast and data showed US companies added fewer jobs than forecast at the start of the year.
“The market rallied in the kneejerk, presumably as a function of a passing event risk along with the fact that this will be the final round of increases,” said Ben Jeffery at BMO Capital Markets.
Treasury 10-year yields declined two basis points to 4.01%. The dollar was little changed. Big tech weighed on futures after Microsoft Corp., Alphabet Inc.’s Google and Advanced Micro Devices Inc. took pains to highlight progress on AI after reporting earnings. Nasdaq 100 contracts dropped about 1%, while S&P 500 futures signaled the benchmark will trim its monthly advance.
Corporate Highlights
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Boeing Co. suspended financial guidance for 2024, sending a message to investors that it’s focused squarely on addressing a troubling string of quality slips that culminated in a near-catastrophic panel blowout on a 737 Max early this month.
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Mastercard Inc.’s fourth-quarter earnings beat expectations even as operating expenses grew more than analysts expected.
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Biogen Inc. is terminating the main clinical trial of its controversial Alzheimer’s drug Aduhelm and returning the rights to the drug to Neurimmune, the private company that invented it, the pharmaceutical giant said in a statement.
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New York Community Bancorp, the regional lender that purchased deposits from Signature Bank last year, reported a surprise loss for the fourth quarter and cut its dividend.
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Saudi Arabia is considering plans to revive a follow-on offering in Aramco as soon as February, in a multibillion-dollar deal that’s likely to rank among the biggest share sales in recent years, according to people familiar with the matter.
Key events this week:
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China Caixin manufacturing PMI, Thursday
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Eurozone S&P Global Manufacturing PMI, CPI, unemployment, Thursday
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US productivity, construction spending, ISM Manufacturing, initial jobless claims, Thursday
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Apple, Amazon, Meta, Deutsche Bank, BNP Paribas earnings, Thursday
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Bank of England interest rate decision, Thursday
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US employment report, University of Michigan consumer sentiment, factory orders, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures fell 0.5% as of 8:49 a.m. New York time
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Nasdaq 100 futures fell 1%
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Futures on the Dow Jones Industrial Average rose 0.1%
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The Stoxx Europe 600 rose 0.3%
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The MSCI World index rose 0.1%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro rose 0.1% to $1.0857
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The British pound was little changed at $1.2706
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The Japanese yen was little changed at 147.57 per dollar
Cryptocurrencies
Bonds
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The yield on 10-year Treasuries declined two basis points to 4.01%
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Germany’s 10-year yield declined three basis points to 2.23%
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Britain’s 10-year yield declined three basis points to 3.87%
Commodities
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West Texas Intermediate crude fell 0.8% to $77.16 a barrel
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Spot gold rose 0.2% to $2,041.38 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from John Viljoen and Isabelle Lee.
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