(Bloomberg) — A rebound in stocks waned as a rally in chipmakers failed to prop up the broader market. The euro fell on bets the European Central Bank will cut rates in September.
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The S&P 500 swung between gains and losses. A solid outlook from Taiwan Semiconductor Manufacturing Co. helped lift US peers Nvidia Corp. and Intel Corp. However, tech giants like Apple Inc. and Microsoft Corp. dropped. Streaming giant Netflix Inc. is due to report results after market close.
Initial jobless claims rose last week by the most since early May and continuing claims jumped. The slowdown in the job market —along with recent moderation in inflation — bolsters the case for the Fed to cut rates as early as September.
“The Fed asked to see more evidence of a cooling economy, and for the most part, they’ve gotten it,” said Chris Larkin at E*Trade from Morgan Stanley. “Add today’s weekly jobless claims to the list of rate-cut-friendly data points. The path to September remains open.”
The S&P 500 hovered near 5,600. The Nasdaq 100 was little changed. The Russell 2000 of smaller firms rose 0.8%. United Airlines Holdings Inc. and homebuilder D.R. Horton Inc. climbed on better-than-estimated profits.
Treasury 10-year yields rose one basis point to 4.17%.
President Christine Lagarde said the ECB’s next interest-rate meeting is “wide open” — hinting that another cut is possible as officials will have significantly more information on inflation by then. Policymakers have been guarded on their plans. But several have in recent weeks tentatively endorsed market bets for one or two more reductions this year.
“The ECB remains on course for a second rate cut in September,” said Mark Wall at Deutsche Bank Research. “Despite some recent inflation data being less friendly, the ECB has excused some as one-offs and others as absorbed in profit margins.”
Corporate Highlights:
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Apple Inc. is having discussions about licensing more films from major Hollywood studios as it looks to bolster its Apple TV+ streaming service, people familiar with the matter said.
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US shoppers spent $14.2 billion online during Amazon.com Inc.’s 48-hour Prime Day sale, up 11% from a year ago and in line with estimates, according to Adobe Inc.
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Domino’s Pizza Inc.’s second-quarter results showed that discounts and new product launches weren’t strong enough to attract more value-seeking diners.
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Warner Bros. Discovery Inc. is considering separating its streaming and studio businesses from legacy TV, one of several options intended to boost its share price, the Financial Times reported.
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Infosys Ltd. raised its sales forecast for the year in a sign that clients are gradually beginning to boost technology spending, encouraged by a resilient global economy.
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Ford Motor Co. will invest $3 billion to build its highly profitable Super Duty F-Series pickup truck at a plant in Ontario, Canada, shifting focus at the site after previously delaying plans for electric sport utility vehicle.
Key events this week:
Stocks
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The S&P 500 was little changed as of 10:36 a.m. New York time
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The Nasdaq 100 fell 0.2%
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The Dow Jones Industrial Average rose 0.2%
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The Stoxx Europe 600 rose 0.3%
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The MSCI World Index was little changed
Currencies
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The Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.3% to $1.0911
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The British pound fell 0.2% to $1.2983
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The Japanese yen fell 0.3% to 156.66 per dollar
Cryptocurrencies
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Bitcoin fell 0.6% to $64,119.03
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Ether rose 0.8% to $3,442.82
Bonds
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The yield on 10-year Treasuries advanced one basis point to 4.17%
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Germany’s 10-year yield was little changed at 2.41%
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Britain’s 10-year yield declined three basis points to 4.04%
Commodities
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West Texas Intermediate crude fell 0.4% to $82.51 a barrel
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Spot gold rose 0.1% to $2,461.67 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sujata Rao and John Viljoen.
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