US futures fell amid mixed earnings reports, while stocks caught up with late gains on Wall Street spurred by a sanguine rates outlook. Oil extended an advance.
(Bloomberg) — US futures fell amid mixed earnings reports, while stocks caught up with late gains on Wall Street spurred by a sanguine rates outlook. Oil extended an advance.
Contracts on the major U.S. gauges fell, following Tuesday’s equity rally. Chipotle Mexican Grill Inc. dropped in premarket trading as its results missed estimates, while Uber Technologies Inc. jumped after revenue beat forecasts.
Activision Blizzard Inc. fell after UK’s antitrust watchdog said Microsoft Corp.’s acquisition of the company will harm competition in the UK gaming market. Microsoft Corp. gained.
European shares rose, buoyed by earnings beats at energy company Equinor ASA and lender ABN Amro NV. A benchmark of Asian shares also climbed. Treasury yields ticked lower and a dollar gauge was little changed.
Investors are assessing data for clues on policy after Federal Reserve Chair Jerome Powell on Tuesday refrained from quashing optimism on Wall Street about the rates outlook. His comments echoed those following the last FOMC meeting, soothing traders who had expected a more aggressive pushback against a loosening in financial conditions following Friday’s bumper payrolls report.
Still, data from Manheim showing a surprise jump in used-vehicle prices last month has the potential to dent hopes that inflation is headed lower.
“Another hawkish speech goes unheard,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said of Powell’s comments. “Investors focused on the fact that he appeared just as hawkish as he has always been, that he didn’t promise a 50bp hike at next meeting, and that he said that the Fed won’t actively shrink its balance sheet for at least a few years.”
Read: Powell Says Further Rate Hikes Needed and Bonds Take Heed
In Asia, most Adani Group stocks rose for a second day, extending their rebound from a rout prompted by short seller Hindenburg Research’s scathing report, as the indebted conglomerate took steps to address investor concerns over leverage.
Elsewhere in markets, oil extended gains after its biggest one-day move since November, helped along by a rebound in demand from China.
Turkey’s stock exchange suspended trading for the first time in 24 years, following a selloff that erased $35 billion from the value of its main equities gauge in the wake of two devastating earthquakes.
Key events:
- US wholesale inventories, Wednesday
- New York Fed President John Williams is interviewed at Wall Street Journal live event, Wednesday
- US initial jobless claims, Thursday
- ECB President Christine Lagarde participates in EU leaders summit, Thursday
- Bank of England Governor Andrew Bailey appears before Treasury Committee, Thursday
- US University of Michigan consumer sentiment, Friday
- Fed’s Christopher Waller and Patrick Harker speak, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures fell 0.4% as of 8:35 a.m. New York time
- Nasdaq 100 futures fell 0.4%
- Futures on the Dow Jones Industrial Average fell 0.4%
- The Stoxx Europe 600 rose 0.8%
- The MSCI World index rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0730
- The British pound rose 0.3% to $1.2083
- The Japanese yen fell 0.2% to 131.27 per dollar
Cryptocurrencies
- Bitcoin fell 0.4% to $23,096.78
- Ether rose 0.3% to $1,673.32
Bonds
- The yield on 10-year Treasuries declined one basis point to 3.66%
- Germany’s 10-year yield advanced three basis points to 2.37%
- Britain’s 10-year yield advanced one basis point to 3.33%
Commodities
- West Texas Intermediate crude rose 0.9% to $77.81 a barrel
- Gold futures were little changed
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Richard Henderson and Sagarika Jaisinghani.
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