Stock futures climbed after the S&P 500 breached a long-term technical level that has triggered rallies in the past, with investors sifting through corporate earnings and economic data.
(Bloomberg) — Stock futures climbed after the S&P 500 breached a long-term technical level that has triggered rallies in the past, with investors sifting through corporate earnings and economic data.
In premarket trading, contracts signaled the US equity gauge would bounce back, following a close below the 200-week moving average.
Bank of America Corp. gained after reporting its highest quarterly net interest income in at least a decade. Treasury yields dropped with the dollar. The pound and UK bonds rose as more of Prime Minister Liz Truss’s unfunded tax cuts were reversed.
Morgan Stanley’s long-time equities bear says US stocks are ripe for a short-term rally in the absence of an earnings capitulation or an official recession.
A 25% slump in the S&P 500 this year has left it testing a “serious floor of support,” which could lead to a technical recovery, strategist Michael J. Wilson wrote.
A measure of New York state manufacturing contracted for a third month in October, and a larger share of factories were more downbeat about business conditions in early 2023.
Key events this week:
- US industrial production, NAHB housing market index, Tuesday
- Fed’s Neel Kashkari speaks, Tuesday
- Euro area CPI, Wednesday
- EIA crude oil inventory report, Wednesday
- US MBA mortgage applications, building permits, housing starts, Fed Beige Book, Wednesday
- Fed’s Neel Kashkari, Charles Evans, James Bullard speak, Wednesday
- US existing home sales, initial jobless claims, Conference Board leading index, Thursday
- Euro area consumer confidence, Friday
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 1.4% as of 8:53 a.m.
New York time
- Futures on the Nasdaq 100 rose 1.8%
- Futures on the Dow Jones Industrial Average rose 1.1%
- The Stoxx Europe 600 rose 1.4%
- The MSCI World index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.6% to $0.9779
- The British pound rose 1.5% to $1.1340
- The Japanese yen was little changed at 148.65 per dollar
Cryptocurrencies
- Bitcoin rose 1.1% to $19,548.42
- Ether rose 0.8% to $1,320.73
Bonds
- The yield on 10-year Treasuries declined 10 basis points to 3.92%
- Germany’s 10-year yield declined 11 basis points to 2.24%
- Britain’s 10-year yield declined 40 basis points to 3.93%
Commodities
- West Texas Intermediate crude rose 0.6% to $86.13 a barrel
- Gold futures rose 1.4% to $1,672.50 an ounce
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
