U.S. stock indexes were mixed, with the Nasdaq 100 Index rising on a takeover bid for Mylan NV, while the Dow Jones Industrial Average slipped after Travelers Cos. and DuPont Co. reported disappointing results. Gold climbed.
The Nasdaq 100 added 0.4 percent by 4 p.m. in New York, while the Dow lost 0.5 percent. The Stoxx Europe 600 Index jumped 0.6 percent, and a gauge of developing-nation stocks rose for the first time in three days. Gold increased on demand for haven assets, while crude oil retreated. Greek 10-year bonds fell a seventh day as concern over a possible default grew.
Mylan rallied 8.9 percent after Teva Pharmaceutical Industries Ltd. made an unsolicited offer of about $40.1 billion for the company, in what would be the drug industry’s largest takeover attempt this year. Investors assessed mixed earnings from Under Armour Inc. to United Technologies Corp. for clues on the strength of corporate balance sheets. The Standard & Poor’s 500 Index lost 0.2 percent after jumping 0.9 percent Monday.
“We’re seeing a little fatigue set in right now as investors look at the tremendous run they’ve had from the bottom,” Terry DuFrene, a New Orleans-based global investment specialist at J.P. Morgan Private Bank, said by phone. The division oversees about $1.05 trillion in client assets. “There is an uneven application of earnings right now that’s not fulfilled by every sector in the S&P.”
The S&P 500 is 1 percent away from a record reached on March 2, the same day the Nasdaq Composite Index topped 5,000 for the first time in 15 years.
In post-market trading Tuesday, Amgen Inc. added 2.4 percent, while Yahoo! Inc. slipped 1.6 percent after the companies reported results. Yahoo’s first-quarter revenue fell short of analysts’ estimates amid competition on web advertising from competitors including Twitter Inc. and Google Inc.
Energy companies in the S&P 500 led declines in ordinary trading Tuesday, falling 1 percent as West Texas Intermediate crude slumped 2 percent, only its second drop in nine days. Transocean Ltd. lost 5.5 percent, while Noble Corp. sank 4.5 percent. International Business Machines Corp. slipped 1.1 percent, while Under Armour lost 4.8 percent and United Technologies added 0.4 percent after reporting results.
More than 140 S&P 500 companies report earnings this week, including McDonald’s Corp. to Boeing Co. While analysts are predicting a slump through September, they have moderated how steep that drop in earnings will be.
“Earnings have been a little better than reduced expectations and with interest rates as low as they are corporations like Teva are able to continue issuing debt at basically free levels,” Andrew Brenner, the head of international fixed income for National Alliance Capital Markets, said by phone.
European Central Bank asset purchases and an easing of monetary policy in China and Japan have pushed benchmark equity indexes toward multiyear highs. The S&P 500 and Nasdaq Composite Index are within striking distance of their records amid receding bets the Federal Reserve will raise key U.S. interest rates by June.
With data due this week on U.S. housing and jobs, investors are seeking clues to the economic recovery after previous reports pointed to weaker growth and the dollar strengthened.
Yields on two-year Treasuries were little changed at 0.52 percent Tuesday after two rising days, as investors speculated over the timeline for higher borrowing costs. Rates on 10-year notes climbed two basis points, or 0.02 percentage point, to 1.91 percent. They have swung between 1.82 percent and 1.92 percent this month.
The yield on Greece’s 10-year bonds rose 35 basis points to 13.64 percent, a level last seen in December 2012.
ECB staff have produced a proposal to increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece, people with knowledge of the discussions said.
The government in Athens ordered local administrations on Monday to move their funds to Greece’s central bank, as it struggled to find money for salaries, pensions and a repayment to the International Monetary Fund.
The Stoxx 600 extended its advance after Dutch Finance Minister Jeroen Dijsselbloem told RTL Television that some progress had been made in debt talks with Greece and a deal may still be reached by the end of the month. Stocks briefly pared gains in Europe after German investor confidence unexpectedly fell for the first time in six months.
The euro was little changed at $1.0736 after sliding 0.6 percent Monday, trading close to a 12-year low. The Bloomberg Dollar Spot Index ended Tuesday up 0.1 percent, while New Zealand’s dollar climbed to 99.48 Australian cents, the highest level since April 6 and close to reaching parity for the first time ever with the neighboring nation’s currency.
The MSCI Emerging Markets Index rose 0.8 percent after a two-day loss of 1.8 percent.
The Hang Seng China Enterprises Index in Hong Kong climbed 3 percent, while the Shanghai Composite Index advanced 1.8 percent. Chinese shares slid Monday as regulatory efforts to curb speculative trading overshadowed stimulus efforts, with the People’s Bank of China cutting the amount lenders have to keep in reserves.
Stocks climbed even as Baoding Tianwei Group Co., a power-transformer maker, became China’s first state-owned company to default on an onshore bond.
Oil halted its rally in New York before government data forecast to show U.S. crude inventories expanded further from a record. Crude stockpiles probably rose by 2.5 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report Wednesday. Brent for June settlement decreased 2.2 percent to $62.08 a barrel in London.
Gold climbed for the second time in three sessions as the Greek concerns boosted its haven appeal. Futures for June delivery rose 0.8 percent to settle at $1,203.10 an ounce in New York. Prices are up 1.6 percent this year amid speculation U.S. rate rises will be gradual.
Tin surged the most in three years Tuesday, jumping 6.7 percent in London amid signs of declining supply after Indonesian producers agreed to reduce output and stockpiles fell. The Bloomberg Commodity Index was down 0.4 percent.