(Bloomberg) — Stocks were mixed as attention shifted from U.S. politics to a packed week of corporate earnings, with technology giants Tesla Inc. and Alphabet Inc. due to report earnings later Tuesday.
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Europe’s Stoxx 600 index was little changed, while U.S. stock futures suggested a lower opening on Wall Street. In Asia, gains in shares of Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. lifted the MSCI Asia Pacific Index. The dollar and U.S. Treasuries traded steady.
With companies accounting for 29% of the S&P 500’s market capitalization set to report earnings this week, investors are watching to see whether the tech rally has room to continue after hitting a wall. Analysts are eager for details on Tesla’s robotaxi service, and AI services are expected to boost revenue for Alphabet’s Google Cloud.
The US election situation remains in focus, with Kamala Harris securing enough delegates to secure the Democratic presidential nomination.
“Historically, election years have been good for equity investors,” said Kieran Calder, head of Asia equity research at Union Bancaire Privé in Singapore. “The fundamental economic and earnings picture is favorable for the market and investors believe they will be rewarded for ignoring the US election drama.”
On the economic data front, U.S. economic indicators and an inflation indicator key to the Federal Reserve are due to be released later this week.
The yen strengthened against the dollar on the prospect that traders will reduce their positions during the summer vacation season. Some at the Bank of Japan are open to raising interest rates at its July meeting, while others see weakness in consumer spending as making that decision difficult, according to people familiar with the matter.
In commodity markets, crude oil is stabilizing near its lowest price in six weeks.
Company Highlights:
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Porsche AG cut its outlook for this year, citing a shortage of aluminum parts that could force production halts on some models and increasing pressure from slowing sales in China.
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Cybersecurity startup Wizz Inc. has rejected a takeover bid of up to $23 billion from Alphabet Inc. and stuck to plans for an initial public offering.
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Banco Sabadell SA’s profits surged in the second quarter, bolstering Chief Executive Officer Cesar Gonzalez Bueno’s efforts to thwart a takeover bid by rival BBVA SA.
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Kako’s shares plummeted after South Korean authorities arrested founder Brian Kim on suspicion of market manipulation.
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Toyota Motor Corp. is set to announce it will buy back shares from major Japanese banks and insurance companies as part of a 1 trillion yen share buyback plan.
Major events this week:
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Eurozone consumer confidence on Tuesday
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U.S. existing home sales Tuesday
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Alphabet, Tesla, LVMH earnings Tuesday
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Canada interest rate decision Wednesday
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U.S. New Home Sales, S&P Global PMI, Wednesday
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IBM, Deutsche Bank Earnings Wednesday
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German IFO Business Environment, Thursday
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US GDP, initial jobless claims, durable goods, Thursday
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U.S. Personal Income, PCE, University of Michigan Consumer Confidence, Friday
Some of the key market developments:
stock
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The Stoxx Europe 600 index was little changed as of 8:21 a.m. London time.
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S&P 500 futures fell 0.3%
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Nasdaq 100 futures fell 0.5%
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Dow Jones Industrial Average futures fell 0.1%.
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MSCI Asia Pacific Index rose 0.3%
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The MSCI Emerging Markets Index rose 0.1%.
currency
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The Bloomberg Dollar Spot Index was little changed.
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The euro was little changed at $1.0882
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The Japanese yen rose 0.4% to 156.49 yen to the dollar.
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The offshore yuan rose 0.1 percent to 7.2883 yuan per dollar.
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The British pound was little changed at 1.2921 to the dollar
Cryptocurrency
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Bitcoin fell 2.3% to $66,606.04.
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Ether fell 1% to $3,454.25.
Bonds
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The yield on the 10-year Treasury note was little changed at 4.24%.
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German 10-year bund yields fell 1 basis point to 2.49%.
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UK 10-year government bond yields were little changed at 4.16%
merchandise
This story was produced with assistance from Bloomberg Automation.
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