Stocks Get Tech Boost Just Hours Before Powell: Markets Wrap

(Bloomberg) — A rally in the world’s largest technology companies drove stocks higher, with traders wading through the latest economic data and awaiting Jerome Powell’s remarks for clues on the Federal Reserve’s next steps. Treasuries and the dollar fluctuated.

Equities headed toward all-time highs, with the S&P 500 set for its 56th closing record this year. A gauge of the “Magnificent Seven” megacaps extended its 2024 surge to 62%. Salesforce Inc. and Marvell Technology Inc. surged at least 9% as their results boosted hopes both companies will keep benefiting from an industrywide boom in artificial intelligence.

Powell participates in a moderated discussion later Wednesday, and one of his favorite barometers of the economy — the Beige Book — will likely reflect the post-election surge in sentiment. Data showed US services activity expanded at the slowest pace in three months while employment at US companies remained firm in November.

“Right now, the odds favor another cut this month followed by a pause in January, but a significant change in the jobs landscape could rearrange those puzzle pieces,” said Chris Larkin at E*Trade from Morgan Stanley.

The S&P 500 rose 0.3%. The Nasdaq 100 climbed 0.7%. The Dow Jones Industrial Average added 0.4%.

Treasury 10-year yields advanced one basis points to 4.24%. The Bloomberg Dollar Spot Index wavered.

Corporate Highlights:

• Dollar Tree Inc. sales improved in the third quarter, a sign the discounter is making headway in fending off competition and drawing in more shoppers.
• Foot Locker Inc. cut its full-year sales and profit forecasts, citing more discounts and a pullback in consumer spending ahead of the crucial holiday season.
• JetBlue Airways Corp. boosted its forecast for fourth-quarter results following higher-than-expected bookings in November and December as well as lower costs tied in part to falling fuel prices.
• Eli Lilly & Co. said its weight-loss drug Zepbound outperformed rival Novo Nordisk A/S’s Wegovy in the first head-to-head trial of the two blockbusters.
• Brian Thompson, the chief executive officer of UnitedHealth Group Inc.’s insurance division, was fatally shot in New York City Wednesday morning, the New York Police Department said.
• General Motors Co. will incur more than $5 billion in charges and writedowns tied to its troubled operations in China as the automaker tries to salvage its once-profitable business in the world’s largest car market.
• Royal Bank of Canada beat estimates as it put aside less money than expected for potentially bad loans, revenue grew across businesses and the company got a boost from its acquisition of HSBC Holdings Plc’s Canadian operations.

Key events this week:

• Eurozone retail sales, Thursday
• US initial jobless claims, Thursday
• Eurozone GDP, Friday
• US jobs report, consumer sentiment, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.3% as of 10:10 a.m. New York time
• The Nasdaq 100 rose 0.7%
• The Dow Jones Industrial Average rose 0.4%
• The Stoxx Europe 600 rose 0.3%
• The MSCI World Index rose 0.2%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0511
• The British pound rose 0.1% to $1.2686
• The Japanese yen fell 0.7% to 150.60 per dollar

Cryptocurrencies

• Bitcoin rose 0.1% to $96,213.04
• Ether rose 5.4% to $3,812.19

Bonds

• The yield on 10-year Treasuries advanced one basis point to 4.24%
• Germany’s 10-year yield advanced two basis points to 2.08%
• Britain’s 10-year yield advanced two basis points to 4.26%

Commodities

• West Texas Intermediate crude fell 0.1% to $69.84 a barrel
• Spot gold rose 0.3% to $2,651.58 an ounce

This story was produced with the assistance of Bloomberg Automation.

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