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Tech Shares Rise as Dollar Stabilizes, Oil Gains: Markets Wrap

Updated on
  • Euro slips as regional PMI signals economy is cooling
  • Alphabet Inc. falls as advertisers pay less for Google clicks

JPMorgan's Lecubarri Sees Value in Europe, EM

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U.S. stocks ended mixed while Alphabet Inc. slipped in after-hours trading as its results disappointed. The dollar stabilized after falling to a 15-month low to start a week packed with corporate results and a Federal Reserve rate decision.

The Nasdaq 100 Index closed at a record, while the S&P 500 Index was little changed as its two largest groups by weighting advanced to offset broader declines. Alphabet Inc.’s shares dropped 2.7 percent as of 4:30 p.m. in New York after the Google parent reported results. The 10-year Treasury yield rose, the dollar strengthened. The euro fell for the first time in three days as data showed the region’s economy cooling. Crude gained.

Earnings from industry bellwethers including Amazon.com Inc. and GlaxoSmithKline Plc and central bank policy discussions are set to provide the latest tests for the equity bull market, which has propelled the value of shares globally to $78 trillion. The euro-area manufacturing figures indicate that gross domestic product is expanding at the weakest pace in six months, adding further doubts about the sustainability of the stock rally at a time when the strong euro is weighing on exporters.

Investors are also bracing for further surprises from Washington after President Donald Trump sought to impose order in his White House in the face of a widening Russia probe. Senior adviser Jared Kushner confirmed four contacts with Russians during his father-in-law’s presidential campaign and the transition, but he described the encounters as unmemorable. Donald Trump Jr. and former Trump campaign Chairman Paul Manafort will go before Senate committees on Wednesday.

Read our Markets Live blog here.

Here are some key events coming up this week:

  • The U.K. begins post-Brexit trade talks with the U.S. in Washington.
  • China posts industrial profits for last month, with early indicators pointing upward.
  • Japanese June data also due this week may show sluggish CPI, even amid a tightening labor market and increased household spending. 
  • The U.S. central bank is expected to make no change to policy on Wednesday with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio.
  • The U.S. economy probably gained traction in the second quarter as spending by American consumers picked up after a lull early this year. The gross domestic product report follows the two-day Federal Reserve monetary policy meeting.
  • Russia, Brazil, Colombia, Turkey and Nigeria announce rate decisions.
  • Alphabet and Facebook Inc. results are on the calendar this week, as are those from Deutsche Bank AG, Nomura Holdings Inc., BNP Paribas SA and UBS Group AG.

And these are the notable moves in markets: 
Stocks

  • The S&P 500 fell 0.1 percent at 4 p.m. in New York. The measure is little changed since closing July 19 at a record. Utility shares led declines, while banks and tech shares paced gains.
  • The Nasdaq 100 Index rose 0.3 percent to close at a record.
  • The Stoxx Europe 600 Index fell 0.2 percent to the lowest in more than three months on a closing basis.
  • The U.K.’s FTSE 100 Index slumped 1 percent in the largest decrease since June 15.
  • The DAX Index lost 0.3 percent to the lowest in more than three months as authorities said they are studying possible collusion among German automakers.
  • The MSCI Emerging Market Index rose 0.4 percent to the highest in more than two years.

Currencies

  • The euro fell 0.2 percent to $1.1646.
  • The British pound rose less than 0.1 percent to $1.30344, the biggest gain in more than a week.
  • The Bloomberg Dollar Spot Index was little changed near the lowest in almost 15 months.
  • The Japanese yen rose 0.1 percent to 111.074 per dollar on its fifth straight advance.

Commodities

  • West Texas Intermediate crude rose 1.3 percent to settle at $46.34 a barrel. Saudi Arabia pledged deep cuts to its crude exports, while Halliburton Co. said the shale boom is slowing down.
  • Gold futures were little changed at $1,261.10 an ounce.

Bonds

  • The yield on 10-year Treasuries added one basis point to 2.25 percent.
  • Germany’s 10-year yield were little changed at 0.508 percent on its seventh consecutive decline.
  • Britain’s 10-year yield rose one basis point to 1.188 percent.

— With assistance by Namitha Jagadeesh, and Robert Brand

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