Stocks Fluctuate Amid Economic, Earnings Reports: Markets Wrap

Stocks fluctuated as traders assessed corporate earnings and economic data, with the Federal Reserve getting ready to wind down stimulus.

Equity gains waned after a report showed that persistent supply-chain challenges continued to weigh on manufacturers in October. The S&P 500 was little changed, while the Dow Jones Industrial Average backed away from the 36,000 level it touched earlier Monday. Treasuries retreated.

In an interview with Bloomberg News, Treasury Secretary Janet Yellen dismissed recent moves in the bond market that have signaled concern about policy makers squelching growth, and expressed confidence in the recovery. More than 80% of S&P 500 companies reporting third-quarter results have beaten Wall Street estimates. That has laid the groundwork for a nearly 6% gain in the benchmark since the season began — the best performance over a comparable period since 2014.

For Morgan Stanley strategist Michael Wilson, the bullish trend for stocks can continue into the Thanksgiving holiday later this month, but “not much longer” as the Fed is expected to start tapering and earnings growth will slow further into next year.

Here are some events to watch this week:

• Reserve Bank of Australia policy decision, Tuesday
• Fed rate decision, U.S. factory orders and durable goods, Wednesday
• OPEC+ meeting on output, Thursday
• Bank of England rate decision, Thursday
• U.S. trade, initial jobless claims, Thursday
• U.S. unemployment, nonfarm payrolls, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 was little changed as of 10:46 a.m. New York time
• The Nasdaq 100 fell 0.2%
• The Dow Jones Industrial Average rose 0.1%
• The Stoxx Europe 600 rose 0.6%
• The MSCI World index rose 0.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.2% to $1.1580
• The British pound was little changed at $1.3675
• The Japanese yen fell 0.2% to 114.16 per dollar

Bonds

• The yield on 10-year Treasuries advanced three basis points to 1.58%
• Germany’s 10-year yield was little changed at -0.10%
• Britain’s 10-year yield advanced four basis points to 1.08%

Commodities

• West Texas Intermediate crude rose 0.9% to $84.36 a barrel
• Gold futures rose 0.6% to $1,794.80 an ounce

Source