(Bloomberg) — U.S. stocks rose toward a record, Treasuries fell and the dollar erased losses after solid economic data bolstered confidence in the economy and the case for higher interest rates. Financial shares climbed after three of the largest American lenders reported results.
The S&P 500 pared a weekly slide to trade near its all-time high. JPMorgan Chase & Co. advanced after results topped estimates, pushing the Dow Jones Industrial Average back above 19,900. Treasuries erased gains after retail sales picked up and producer prices firmed last month. The dollar rebounded after touching the lowest point in almost a month. Gold increased for a fifth day, trading near the highest closing price since November.
The data on the American economy reinvigorated trades that had stalled in recent days amid concern that Donald Trump’s policy proposals won’t translate to immediate economic gains. The pro-growth agenda he has broadly outlined sparked rallies in equities and the dollar, while sending haven assets lower in the month after his election. Those moves stalled after the Federal Reserve signaled in December that faster growth could force it to lift rates higher than markets had been expecting.
“Since Trump was elected expectations were set very high,” said Andrzej Pioch, who helps oversee $1.3 billion as a money manager at Legal & General Investment Management Ltd in London. “Now we need to see some evidence in the hard data to support that. We expect the earnings to be modestly up but a lot of positive news is already priced in.”
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- The S&P 500 rose 0.3 percent to 2,277.74 at 11:35 a.m. in New York, poised for a record close. The index is flat for the week.
- Bank of America Corp. rose 1.2 percent, while Wells Fargo & Co. added 2.6 percent. Both lenders reported earlier.
- The Stoxx Europe 600 Index climbed 0.9 percent, rebounding from a 0.7 percent drop on Thursday.
- The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, rose 0.1 percent after falling 0.5 percent on Thursday. The gauge is down 0.6 percent for the week.
- Turkey’s lira slid 0.7 percent and is heading for a 3.9 percent weekly loss.
- The benchmark 10-year Treasury yield was climbed three basis points to 2.39 percent, after touching the lowest level since Nov. 30 on Thursday.
- Bonds were mixed in Europe. Greek bonds led losses, with the yield on 10-year notes climbing four basis points to 6.8 percent. The Portuguese 10-year yield retreated 1 basis points to 3.86.
- Oil dropped below $53 a barrel after making the biggest two-day gain in almost six weeks as Saudi Arabia said it cut output even more than required by an OPEC deal. West Texas Intermediate crude was 0.6 percent lower at $52.72.
- Gold added 0.3 percent to $1,198.18 an ounce, on track for a third weekly gain.
- Nickel fell 0.9 percent to $10,185 a metric ton in London, heading for a weekly decline after Indonesia said it would allow some exports of ore, easing a ban on unprocessed shipments.
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