Shares Upward push in Fed Countdown as Income Roll In: Markets Wrap

(Bloomberg) — Stocks kicked off the week with gains ahead of major central bank decisions, key economic data and earnings from four megacaps worth nearly $10 trillion.

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Following a big rotation that drove the Nasdaq 100 to the brink of a correction, the tech-heavy benchmark climbed on Monday. In a week that also brings a Federal Reserve rate decision, investors will focus primarily on results from Microsoft Corp. on Tuesday, followed by Meta Platforms Inc., Apple Inc. and Amazon.com Inc. over the next two days.

“Traders are facing a key week of earnings and economic data,” said Chris Larkin at E*Trade from Morgan Stanley. “With the majority of megacap tech stocks about to release their numbers, the results could determine whether the Nasdaq 100 falls into correction territory. Meanwhile, traders will be looking to Wednesday’s FOMC announcement and Friday’s jobs report for confirmation the Fed is on track to cut rates in September.”

The S&P 500 rose 0.2%. The Nasdaq 100 added 0.4%. The Russell 2000 Index gained 0.3%. The yield on 10-year Treasuries declined three basis points to 4.16%.

Corporate Highlights:

• McDonald’s Corp. sales declined for the first time since 2020 in the second quarter, falling short of analyst expectations for modest growth.

• Tesla Inc. was named by Morgan Stanley as its new top pick within the US autos sector, replacing Ford Motor Co.

• Apple Inc.’s upcoming artificial intelligence features will arrive later than anticipated, missing the initial launch of its upcoming iPhone and iPad software overhauls but giving the company more time to fix bugs.

• Reckitt Benckiser Group Plc plunged to an 11-year low on Monday after a verdict against Abbott Laboratories intensified concerns over infant formula lawsuits faced by both companies.

• Alibaba Group Holding Ltd. unveiled a plan to earn more service fees from merchants.

Key events this week:

• Eurozone economic confidence, GDP, consumer confidence, Tuesday

• US JOLTS job openings, consumer confidence, Tuesday

• Microsoft earnings, Tuesday

• China manufacturing PMI, non-manufacturing PMI, Wednesday

• Eurozone CPI, Wednesday

• Bank of Japan policy decision, Wednesday

• US ADP employment change, Wednesday

• Fed rate decision, Wednesday

• Meta Platforms earnings, Wednesday

• China Caixin manufacturing PMI, Thursday

• Eurozone S&P Global Eurozone Manufacturing PMI, unemployment, Thursday

• US initial jobless claims, ISM Manufacturing, Thursday

• Amazon, Apple earnings, Thursday

• Bank of England rate decision, Thursday

• US employment, factory orders, Friday

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Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 9:31 a.m. New York time

• The Nasdaq 100 rose 0.4%

• The Dow Jones Industrial Average was little changed

• The Stoxx Europe 600 rose 0.2%

• The MSCI World Index rose 0.3%

• Bloomberg Magnificent 7 Total Return Index rose 0.9%

• The Russell 2000 Index rose 0.3%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%

• The euro fell 0.4% to $1.0816

• The British pound fell 0.1% to $1.2849

• The Japanese yen fell 0.1% to 153.96 per dollar

Cryptocurrencies

• Bitcoin rose 2.4% to $69,632.95

• Ether rose 3.1% to $3,362.03

Bonds

• The yield on 10-year Treasuries declined three basis points to 4.16%

• Germany’s 10-year yield declined six basis points to 2.35%

• Britain’s 10-year yield declined six basis points to 4.04%

Commodities

• West Texas Intermediate crude rose 0.2% to $77.30 a barrel

• Spot gold rose 0.3% to $2,395.11 an ounce

This story was produced with the assistance of Bloomberg Automation.

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