(Bloomberg) —

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U.S. stocks climbed to an almost six-week high amid a rally in giant technology companies as traders awaited earnings from banks and news on a fresh round of economic stimulus.

The S&P 500 extended gains into a fourth day, while the NYSE FANG+ Index of megacap tech shares rose 2.2%. Amazon.com Inc. surged before its Prime Day event, Apple Inc. jumped as its price target was raised by RBC Capital Markets while Twitter Inc. rallied after Deutsche Bank recommended buying the stock. As lenders including JPMorgan Chase & Co. and Wells Fargo & Co. report their results this week, analysts expect a slight uptick in net charge-offs with some loans souring. Energy shares underperformed as oil sank below $40 a barrel. The Treasury market is closed for a U.S. holiday.

Prospects for another round of fiscal spending remain highly unsettled after President Donald Trump pulled out of talks on Oct. 6, hours after Federal Reserve Chairman Jerome Powell urged lawmakers err on the side of doing more rather than less to help the economy heal from Covid-19. The White House subsequently proposed a new $1.8 trillion stimulus package, with Trump himself saying he wanted to go even further, and negotiations with Democrats are expected to continue this week.



chart: S&P 500 climbs to highest level since early September


© Bloomberg
S&P 500 climbs to highest level since early September

“The stimulus stalemate still looms large, though it failed to derail the market,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “And with high expectations for big-bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery.”

U.S. voters are getting their first close look at Judge Amy Coney Barrett in hearings that began Monday and are all but certain

(Bloomberg) — U.S. stocks rallied, with the S&P 500 posting its biggest weekly increase since July, as traders bet lawmakers are moving closer to providing more fiscal stimulus. Treasury yields were mostly flat and the dollar slipped.

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The benchmark equity gauge rose for a third day with President Donald Trump saying he now wants an even bigger package than what Democrats offered. For the week, the index finished up 3.8%. The tech-heavy Nasdaq 100 jumped 1.5% on Friday, with chip maker Xilinx Inc. leaping on a report it’s in advanced talks for a $30 billion takeover by rival Advanced Micro Devices Inc.

“We’ve had this whipsaw around wondering if there will be more fiscal stimulus, which I think we desperately need to keep the economy rolling,” said Ron Temple, head of U.S. equity at Lazard Asset Management LLC.

European stocks rose as a host of companies raised outlooks, from Denmark’s drugmaker Novo Nordisk A/S to German online clothing retailer Zalando SE. Stocks fell in Spain, where the government’s cabinet met to declare a state of emergency for Madrid to control Covid-19. Italy’s 10-year bond yield fell a record low.



chart: Stocks with high capex, cash returns or shaky finances are trailing the market


© Bloomberg
Stocks with high capex, cash returns or shaky finances are trailing the market

Investors ended a volatile week with a risk-on attitude. With Trump recuperating from Covid-19 in the final stretch of the election campaign, they’re increasingly betting a Joe Biden victory is likely. Speculation is moving now to whether Democrats will sweep Congress too and then enact massive stimulus.

“There’s also the possibly you could see a Democratic sweep in the election and that raises the prospects for higher taxes, which would be a negative, but also for really pronounced stimulus and that could take some of the more extreme risks off the table,” said Giorgio

(Bloomberg) — U.S. equity futures climbed after the White House appeared to shift tack and signaled the Trump administration is again leaning toward a large-scale stimulus bill. The dollar fell.

S&P 500 contracts were about 0.5% higher following news that Treasury Secretary Steven Mnuchin told Nancy Pelosi that President Donald Trump wants agreement on a comprehensive aid package. Shares in Japan dipped, while those in Australia rose. Chinese equities advanced as markets reopened after a week-long holiday. The offshore yuan climbed following a stronger-than-anticipated daily currency fixing.

The U.S. benchmark earlier closed up despite conflicting comments from Trump and Pelosi that whipsawed markets. Gains for crude oil eased as Hurricane Delta approached the already battered Louisiana coast. Treasuries ticked higher and gold climbed.



chart: MSCI gauge of global equities heads for best week since early July


© Bloomberg
MSCI gauge of global equities heads for best week since early July

Global equities are edging back toward last month’s all-time high and are having the best week since the start of July with investors increasingly betting that a Joe Biden victory in the November election and gains by Democrats in Congress will support stocks. The scenario seems to be somewhat quelling volatility even as risks from a split in government to a resurgence of coronavirus cases threaten the economic rebound. Trump’s doctor said he expects the president to safely return to public engagements by Saturday following treatment for Covid-19.

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We are seeing “an increasing probability of, let’s call it, the blue wave,” Abby Joseph Cohen, senior investment strategist at Goldman Sachs Group Inc., said on Bloomberg TV. That “might not be such a bad thing, because that would give us more certainty with regard to policy, particularly with the use of fiscal policy to help our economy at this point.”

Prospects for an agreement on a stimulus package in Washington remain uncertain

(Bloomberg) — U.S. stocks retreated from almost five-week highs after House Speaker Nancy Pelosi dampened expectations for more fiscal stimulus. Treasury yields edged lower and the dollar weakened.

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The S&P 500 remained higher for a second day after President Donald Trump touted progress in talks even though there were few signs the two sides are any closer on a deal. Pelosi said there won’t be a standalone bill on airlines without a guarantee the other stimulus items are going to be addressed.

“The market is very dependent on stimulus talks,” said David Wagner, portfolio manager and analyst at Aptus Capital Advisors. “I think there is more dependence on that than the actual outcome and policy changes from a change in the administration.”

Eaton Vance Corp. leaped after the investment firm agreed to be taken over by Morgan Stanley. IBM surged after saying it will spin off its infrastructure unit. Regeneron Pharmaceuticals Inc. rose after Trump said its antibody cocktail was the “key” to his quick recovery. The president said he would authorize its emergency use.



chart: Gauge of semiconductor stocks rises to 20-year relative high versus the S&P 500


© Bloomberg
Gauge of semiconductor stocks rises to 20-year relative high versus the S&P 500

Bulls are now back in control of a market that’s increasingly betting that a Joe Biden presidential victory and gains by Democrats in Congress will be good for equities. The scenario seems to be quelling volatility even as risks from a split in government to a resurgence of coronavirus cases threaten the economic rebound.

“The market is now almost treating Trump’s actions as a sideshow, and is much more firmly pricing Biden in the White House,” Mizuho strategists including Peter Chatwell wrote in a note.

Still, they warned investors against “getting bulled-up on Biden” and the possibility of Democrats winning in the November election, including the Senate. Trump

(Bloomberg) — European stocks and U.S. futures rose as global markets extended a rally fueled by optimism that American lawmakers will reach a stimulus deal.

The Europe Stoxx 600 Index rose 0.7% and the MSCI Asia Pacific Index notched a fourth day of gains. The S&P 500 jumped 1.7% on Wednesday after a barrage of overnight tweets from President Donald Trump advocating a piecemeal approach and Speaker Nancy Pelosi signaled openness to a standalone airline relief bill.

The dollar weakened, which helped boost commodities including oil and gold. Treasury yields were steady.



graphical user interface: Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.


© Bloomberg
Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.

“While the debate on a fiscal stimulus this side of the election rages on, the real question is whether markets are front running a ‘blue wave’ scenario?” Chris Weston, head of research at Pepperstone Financial in Melbourne, wrote in a note, referring to the possibility of Democrats winning the White House as well as the Senate. Another risk is whether “we will see an ugly contested scenario.”

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Minutes of the Federal Open Market Committee’s Sept. 15-16 meeting released Wednesday showed some U.S. central bankers sought further debate on the future of the Federal Reserve’s asset-purchase program, signaling they’d be open to altering or increasing bond-buying going forward.

Meanwhile, countries continue to grapple with rising coronavirus infections. France reported a record number of new cases and Italy’s infections spiked to the highest since April.

Regeneron shares gained 3.5% in late trading in New York after President Donald Trump said its an antibody cocktail was was the “key” to his quick recovery. Trump said he would authorize its emergency use.

Elsewhere in markets, crop futures are climbing as dry weather threatens planting in the Americas and Black Sea areas. Wheat has