Stocks rally as investors turn focus to earnings
U.S. stocks rose as geopolitical tensions faded and investors turned to what’s expected to be a blowout corporate earnings season.
The dollar fell against most peers.
The S&P 500 Index gained to the highest in almost a month and erased its loss for the year as investors eyed the earnings season after there was no immediate reprisal to the U.S.-led missile strike in Syria and trade concerns took a back seat.
The benchmark got a boost from health-care supply companies after a report said Amazon Inc. shelved a plan to sell drugs.
Netflix Inc. shares rose more than 5 percent in after-hours trading after the company reported results.
Treasuries were little changed, while the greenback fell to the lowest since March after President Donald Trump accused China and Russia of devaluing their currencies.
West Texas crude futures dropped below $67 a barrel.
“Earnings are going to be very good, probably up in the 15 to 20 percent neighborhood year over year. We felt that that would drive stocks higher over the course of the next two months,” Phil Orlando, chief equity market strategist at Federated Investors Inc., said by phone. “We’re not looking for an earnings-related or economic-related impact from the Syria bombings.”
While geopolitical concerns linger, the focus this week is back on earnings from American corporations and a slew of Federal Reserve officials who are due to speak, including the incoming head of the New York Fed, John Williams.
Elsewhere, aluminum resumed its rally, adding to what was its biggest weekly increase on record Friday.
The yen edged higher as polls showed falling support for Japanese Prime Minister Shinzo Abe’s government.
Goldman Sachs Group Inc. and Morgan Stanley are among the companies reporting results this week.
Trump welcomes Japan Prime Minister Shinzo Abe to Mar-a-Lago on Tuesday. North Korea and trade will probably be discussed.
Here are the main moves in markets:
The S&P 500 Index gained 0.8 percent to 2,677.84 as of 4 p.m. New York time. The Stoxx Europe 600 Index decreased 0.4 percent. The MSCIAll-Country World Index rose 0.3 percent. TheU.K.’s FTSE100 Index fell 0.9 percent to the lowest in a week.
The Bloomberg Dollar Spot Index declined 0.3 percent to the lowest in three weeks.The euro gained 0.4 percent to $1.2375.The British pound rose 0.7 percent to $1.4333, hitting the strongest in about 22 months.The Japanese yen advanced 0.2 percent to 107.14 per dollar.
The yield on 10-yearTreasuries were little changed at 2.83 percent.Britain’s 10-year yield increased three basis points to 1.463 percent.Germany’s 10-year yield rose one basis point to 0.525 percent.
Gold was steady at $1,365.37 an ounce. West Texas Intermediate crude dipped 1.5 percent to $66.39 a barrel, the first retreat in more than a week. LME aluminum gained 4.99 percent to $2,399.00 per metric ton, the highest in more than six years.