Stocks rise with U.S. futures as profit: market overview

(Bloomberg) — Stocks rose along with US futures as investors digested a plethora of earnings reports and waited for data on US jobless claims.

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US gauge contracts signaled a recovery from losses in the stock market on Wednesday. Walt Disney Co. sharply increased pre-market trading volume on stronger-than-expected results and a restructuring plan that includes job cuts and cost savings. Robinhood Markets Inc. rose on the back of strong earnings, while shares of toy maker Mattel Inc. fell due to disappointing forecasts.

European stock indices are rising for the third day after the largest companies Siemens AG and AstraZeneca Plc published results that exceeded estimates. Shares of Credit Suisse Group AG fell after warnings that they could suffer significant losses this year. The Asian equities index rose thanks to the growth of Chinese and Hong Kong stocks.

Treasury 10-year bonds retained gains from Wednesday’s rally after a strong auction. The dollar index weakened.

Investors will keep a close eye on U.S. data, including the report on initial jobless claims released Thursday, for policy clues after a number of Federal Reserve officials confirmed interest rates will need to continue to rise to curb inflation, which reduces market optimism. Meanwhile, profits are also in the spotlight, with a major share buyback being the highlight of the season.

“Investors are ridding themselves of yet another instance of worry about how far interest rates in the United States will go as the bell produced a slew of better-than-expected corporate results,” said Suzanne Streeter, senior investment and markets analyst at Hargreaves Lansdown. . .

After a hawkish chorus this week, federal funds futures markets are priced at higher rates, with some options traders betting that the US benchmark will hit 6%.

“I don’t think the Fed will cut rates this year,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, told Bloomberg Television. “The Fed has been lagging behind in terms of raising interest rates and they will certainly be cutting interest rates very slowly.”

In Asia, shares of Adani Enterprises Ltd. fell, ending a two-day gain after MSCI Inc. said it is reviewing the number of shares associated with the Adani Group that are freely traded on public markets.

Elsewhere, oil has stabilized after gaining about 7% over the previous three sessions. The Australian and New Zealand dollars rose.

Key events:

  • US Initial Jobless Claims Thursday

  • ECB President Christine Lagarde attends the EU leaders’ summit, Thursday

  • Bank of England Governor Andrew Bailey appears before the Treasury committee on Thursday

  • University of Michigan Consumer Sentiment, Friday

  • Statement by Christopher Waller and Patrick Harker of the Fed, Friday

Some of the major movements in the markets are:

Stock

  • The Stoxx Europe 600 was up 0.8% as of 9:39 am London time.

  • S&P 500 futures up 0.7%

  • Nasdaq 100 futures up 1%

  • Dow Jones Industrials futures up 0.6%

  • The MSCI Asia Pacific Index rose 0.5%.

  • The MSCI Emerging Markets Index rose 0.5%.

Currencies

  • The Bloomberg spot dollar index fell 0.3%.

  • The euro rose 0.4% to $1.0759.

  • The Japanese yen rose 0.4% to $130.94 per dollar.

  • The offshore yuan rose 0.2% to 6.7833 per dollar.

  • The British pound rose 0.5% to $1.2132.

Cryptocurrencies

  • Bitcoin fell 1.1% to $22,697.5.

  • Ether fell 1.2% to $1,632.6.

Bonds

  • The 10-year Treasury yield fell one basis point to 3.60%.

  • The yield on German 10-year bonds fell six basis points to 2.30%.

  • The yield on British 10-year bonds fell six basis points to 3.26%.

Goods

  • Brent crude fell 0.3% to $84.87 a barrel.

  • Spot gold rose 0.3% to $1,881.80 an ounce.

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Tassia Sipahutar, Richard Henderson and Michael Msika.

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