(Bloomberg) — Stocks were buoyed by earnings optimism as traders looked ahead to a busy week for company results. The yen rebounded after dropping to its lowest in 34 years.
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With Apple Inc. and Amazon.com Inc. scheduled to report in the next few days, investors will be hoping for more evidence that big technology profits can keep propelling stocks. Tesla Inc. soared after clearing hurdles to introduce its driver-assistance system to China. Ten-year Treasury yields fell and the dollar weakened.
The Federal Reserve’s meeting on Wednesday and US jobs report on Friday will also be critical for markets this week. The last time Fed Chair Jerome Powell spoke, he signaled that policymakers were likely to keep borrowing costs high for longer than previously anticipated, pointing to the lack of further progress on bringing inflation down, and to enduring strength in the labor market.
Traders Snared in Yen ‘Bingo’ as Manic Swings Ruin Japan Holiday
In foreign exchange markets, the Japanese yen took center stage with dramatic moves that fueled speculation over whether the government had intervened to support its beleaguered currency. In holiday-thinned trading, the yen swung wildly, rallying more than 2% on Monday after earlier dropping as much as 1.2% to 160.17 per dollar.
While analysts suggested the size and speed of the jump smacked of intervention, some traders questioned that conclusion and said Japanese banks sold dollars for customers as it rallied. Japan’s top currency official, Masato Kanda, chose to keep investors guessing by declining to comment. Dow Jones reported authorities stepped in to support the yen, citing people familiar with the matter.
Morgan Stanley’s Michael Wilson said the pressure from higher Treasury yields is taking the shine off an upbeat earnings season. Data compiled by Bloomberg Intelligence showed that 81% of S&P 500 firms have beaten first-quarter profit estimates so far.
Still, the average stock price has barely outperformed the benchmark index on the day of results — the worst scorecard since the fourth quarter of 2020, the figures showed.
Corporate Highlights:
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Elon Musk made an unannounced trip to China on Sunday. The surprise visit appears to have paid immediate dividends, with Tesla Inc. clearing two key hurdles to introduce its driver-assistance system to the world’s biggest auto market.
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Apple’s iPad has been added to a list of Big Tech products and services hit by strict new European Union rules aimed at stopping potential competition abuses before they take hold.
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L’Occitane International billionaire owner Reinold Geiger is close to making an offer to take the skin-care company private, according to people familiar with the matter.
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Royal Philips NV will book provisions of €982 million ($1.1 billion) as part of a planned settlement in the US to compensate claims following a recall of medical equipment that treats sleep apnea
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Embattled French IT services company Atos SE raised the amount of cash it is seeking to €1.7 billion ($1.8 billion) from €1.2 billion previously and wants to cut its debt further in an update to its rescue plan.
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Blackstone Inc. made a fresh offer for Hipgnosis Songs Fund Ltd., surpassing a previous bid from music investment firm Concord and intensifying a bidding war for the UK-listed company
Some key events this week:
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Australia retail sales, Tuesday
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China Caixin manufacturing PMI, non-manufacturing PMI, manufacturing PMI, Tuesday
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Japan unemployment, industrial production, retail sales, Tuesday
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Eurozone CPI, GDP, Tuesday
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Colombia rate decision, Tuesday
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Amazon earnings, Tuesday
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New Zealand unemployment, Wednesday
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UK S&P Global / CIPS Manufacturing PMI, Wednesday
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US rate decision, Wednesday
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Indonesia CPI, Thursday
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South Korea CPI, S&P Global Manufacturing PMI, Thursday
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Eurozone S&P Global Manufacturing PMI, Thursday
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Apple earnings, Thursday
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Eurozone unemployment, Friday
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Norway rate decision, Friday
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US unemployment, nonfarm payrolls, ISM Services, Friday
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.3% as of 9:30 a.m. New York time
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The Nasdaq 100 rose 0.4%
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The Dow Jones Industrial Average rose 0.2%
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The Stoxx Europe 600 rose 0.2%
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The MSCI World index rose 0.4%
Currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro was little changed at $1.0700
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The British pound rose 0.3% to $1.2525
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The Japanese yen rose 1.2% to 156.49 per dollar
Cryptocurrencies
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Bitcoin fell 1.9% to $62,458.78
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Ether fell 4.9% to $3,147.84
Bonds
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The yield on 10-year Treasuries declined three basis points to 4.63%
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Germany’s 10-year yield declined four basis points to 2.53%
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Britain’s 10-year yield declined three basis points to 4.30%
Commodities
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West Texas Intermediate crude fell 0.6% to $83.38 a barrel
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Spot gold fell 0.1% to $2,334.65 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess, Divya Patil and Richard Henderson.
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