US stocks rebounded from Thursday’s sell-off as the latest batch of earnings provided evidence of corporate strength. The dollar and Treasuries fell on signs of easing trade tensions with China.
The S&P 500 headed for its first weekly gain in a month as strong results from American Express, industrial heavyweight Honeywell and consumer giant Proctor & Gamble bolstered confidence in the economy. Financial technology company Paypal Holdings surged after beating analyst expectations, pushing the tech-heavy Nasdaq 100 to outperform.
European shares were mixed as simmering concern over Italy’s budget crisis sent the nation’s stocks to a 19-month low and its bonds lower. China’s stock rout eased even after disappointing economic-growth data.
The dollar dropped for the first time in the three days and the 10-year treasury yield rose to 3.20%, amid reports President Xi Jinping and President Donald Trump tentatively agreed to meet on the sidelines of the G-20 summit in November, helping to cool trade war tensions.
As earnings season picks up steam, investors are sifting through results for signs of strength and weakness to see whether the ongoing trade war between the US and China as well as higher rates are eating away at profits. In the background, markets remain on tenterhooks over the tensions surrounding the disappearance of a prominent Saudi journalist, Brexit and the Italian budget drama.
Elsewhere, oil rose to $69 a barrel, while emerging-market stocks and currencies advanced, rounding out a second week of gains.
These are the main moves in markets:
• The S&P 500 Index rose 0.8% as of 9:54 am New York time.
• The Stoxx Europe 600 Index decreased 0.2%.
• The MSCI All-Country World Index fell 0.1%.
• The MSCI Emerging Market Index increased 0.2%.
• The Bloomberg Dollar Spot Index fell 0.1%.
• The euro climbed 0.1% to $1.1464.
• The Japanese yen declined 0.2% to 112.41 per dollar.
• The MSCI Emerging Markets Currency Index increased 0.2%.
• The yield on 10-year Treasuries gained two basis points to 3.20%.
• Germany’s 10-year yield fell less than one basis point to 0.41%, the lowest in more than five weeks.
• Britain’s 10-year yield decreased less than one basis point to 1.538%.
• The spread of Italy’s 10-year bonds over Germany’s rose six basis points to the widest in more than five years.
• The Bloomberg Commodity Index climbed 0.4%.
• West Texas Intermediate crude gained 0.8% to $69.18 a barrel.
• LME copper advanced 1.2% to $6 229.50 per metric ton, the largest gain in more than a week.