US stocks edged higher in choppy trading at the start of a week with midterm elections and the latest inflation readings in focus.
(Bloomberg) — US stocks edged higher in choppy trading at the start of a week with midterm elections and the latest inflation readings in focus.
The S&P 500 held modest gains, while the tech-heavy Nasdaq 100 struggled to get traction as Apple Inc. extended declines for a sixth day. Higher Treasury yields also posed headwinds for growth stocks. Still, the dollar traded lower.
Apple fell after a report saying it expected to produce at least three million fewer iPhone 14 handsets than originally anticipated this year. Facebook parent Meta Platforms Inc. advanced on plans for job cuts.
Appetite for risk assets remained upbeat ahead of US midterms. Morgan Stanley’s Michael Wilson said polls pointing to Republicans winning at least one chamber of Congress provide a potential catalyst for lower bond yields and higher equity prices.
That bout of optimism outweighs, for the moment, the Federal Reserve’s resolute campaign against price surges, signs of stress in US corporate performance and China’s announcement it will “unswervingly” adhere to current Covid Zero policy.
Stocks gained on Friday, paring the biggest weekly drop since September, after data showed strong hiring and wage increases along with higher unemployment. That offered a mixed picture for Federa officials debating how long to extend their campaign to curb elevated inflation.
The latest US inflation reading due Thursday will be closely watched after the core consumer price index rose more than forecast to a 40-year high in September. Even if prices begin to moderate, the CPI is far above the Fed’s comfort zone.
Key events this week:
- Fed officials Susan Collins, Loretta Mester and Tom Barkin speak at events, Monday
- Euro-zone retail sales, Tuesday
- US midterm elections, Tuesday
- EIA oil inventory report, Wednesday
- China aggregate financing, PPI, CPI, money supply, new yuan loans, Wednesday
- US wholesale inventories, MBA mortgage applications, Wednesday
- Fed officials John Williams, Tom Barkin speak at events, Wednesday
- US CPI, US initial jobless claims, Thursday
- Fed officials Lorie Logan, Esther George, Loretta Mester speak at events, Thursday
- US University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.2% as of 10:37 a.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average rose 0.5%
- The Stoxx Europe 600 rose 0.2%
- The MSCI World index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $0.9990
- The British pound rose 0.7% to $1.1457
- The Japanese yen was little changed at 146.55 per dollar
Cryptocurrencies
- Bitcoin fell 1.9% to $20,726.12
- Ether fell 1.3% to $1,583.22
Bonds
- The yield on 10-year Treasuries advanced five basis points to 4.21%
- Germany’s 10-year yield advanced three basis points to 2.33%
- Britain’s 10-year yield advanced eight basis points to 3.62%
Commodities
- West Texas Intermediate crude rose 0.3% to $92.90 a barrel
- Gold futures rose 0.1% to $1,678.40 an ounce
–With assistance from Michael G. Wilson, Tassia Sipahutar and Srinivasan Sivabalan.
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