U.S. Stocks Mixed as Tech Slips, Dollar Advances: Markets Wrap

  • Greenback strengthens before July 4 holiday; gold declines
  • Pound weakens first time in nine days on manufacturing miss

Oil Caps Longest Rally This Year

U.S. stocks were mixed as a rally in banks took the Dow Jones Industrial Average to a fresh record, while technology shares tumbled anew. The dollar strengthened as factory data bolstered optimism in the strength of the American economy.

Energy and financial shares lifted the S&P 500 Index, though the measure erased more than half of its gain in the final hour of trading. The Dow rose as much as 243 points to an intraday record before closing higher by 130 points. The Nasdaq 100 Index dropped 0.9 percent. Markets closed at 1 p.m. ahead of the July 4 holiday. The dollar strengthened the most in two weeks after American factories powered up in June at the fastest pace in nearly three years. Crude climbed after industry data Friday showed active U.S. rigs declined for the first time in 24 weeks.

Trading volumes in many markets were light before Tuesday’s U.S. holiday and as investors await Friday’s report on the American jobs market. Economic data may provide a key insight for traders in the wake of a hawkish shift from central banks that roiled markets last week.

Meanwhile in Japan, the ruling party lost to an upstart outfit in an election for Tokyo’s assembly, presenting Prime Minister Shinzo Abe with one of his biggest tests since coming to power in late 2012. The Yen reversed an advance.

Read our Markets Live blog here.

Here are some key upcoming events:

  • The Federal Reserve on Wednesday releases the minutes from its June 13-14 policy meeting, at which officials raised interest rates.
  • German Chancellor Angela Merkel hosts a two-day G-20 summit in Hamburg beginning Friday. President Donald Trump will attend and is expected to hold his first meeting with Russia’s Vladimir Putin on the sidelines. 
  • American employers probably added around 175,000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project the U.S. Labor Department to report on Friday.

Here are the main moves in markets:

Stocks

  • The S&P 500 advanced 0.2 percent to 2,429.02 as of 1 p.m. in New York. The gauge rose 0.2 percent on Friday to round out its worst week since April. 
  • The Stoxx Europe 600 Index increased 1.1 percent, with miners and energy companies rising.
  • MSCI’s emerging-market index added 0.2 percent.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.5 percent after dropping 1 percent last week and touching the lowest level since October.
  • The pound fell 0.6 percent to $1.2944 after an eight-day rally. 
  • The euro slipped 0.6 percent to $1.1367.
  • The yen fell 0.9 percent to 113.45 per dollar, after erasing an earlier advance of as much as 0.4 percent.

Bonds

  • The yield on 10-year Treasuries rose five basis points to 2.35 percent after surging 16 basis points last week.  
  • French and German 10-year yields both rose one basis point.

Commodities

  • Wheat jumped to a one-year high on the Chicago Board of Trade as agriculture markets soared on an expanding drought in the U.S. and disappointing data on sowed acreage.
  • West Texas crude rose 2.1 percent to $47 a barrel. WTI has rallied more than 9 percent over eight days, after tumbling from the year’s peak to enter a bear market.
  • Gold futures slipped 1.7 percent to $1,221.60 an ounce.
  • Most industrial metals rose after a private gauge of China’s manufacturing exceeded estimates in June.

Asia

  • Japan’s Topix rose as a survey showed confidence grew among manufacturers.
  • Hong Kong’s Hang Seng and the Shanghai Composite climbed 0.1 percent.
  • China’s bond connect program with Hong Kong will give offshore investors another way to access the mainland’s $10 trillion debt market.
    Before it's here, it's on the Bloomberg Terminal.
    LEARN MORE