(Bloomberg) — U.S. stocks traded mixed, with gains in tech shares blunting weakness in airlines and hotels amid signs that the world economy has a long way to go to get back on track.
Most stocks on the S&P 500 Index fell, though the index was down just a tad as heavyweights such as Microsoft Corp., Apple Inc. and Facebook Inc. advanced, sending the Nasdaq Composite toward a record high. Companies dependent on the end to coronavirus lockdowns underperformed. European shares fell as officials warned the economy will take longer to recover and Germany reported weaker-than-expected industrial data.
Gold climbed to the highest since 2011. The dollar strengthened and Treasury yields held steady. West Texas oil rose toward $41 a barrel.
Investors are catching their breath after a ferocious rally that fueled the S&P 500’s best winning streak this year. While recent reports show the global economy could be past the worst of the slump, it’s a long road back to pre-crisis levels. Federal Reserve Bank of Atlanta President Raphael Bostic said in an interview with the Financial Times that economic activity in parts of the the U.S. is showing signs of leveling off amid a resurgence in coronavirus cases.
“Yesterday was a really strong day so I’m not surprised to see a bit of profit-taking,” said Bob Phillips, managing principal at Spectrum Management Group. “We’re kind of in a range-bound market.”
The European Commission gave its starkest warning yet about the impact of the pandemic. Officials now forecast a contraction of 8.7% in the euro area this year, a full percentage point deeper than previously predicted.
German Industry Rebounds From Virus Nadir Facing Long Road Ahead
Elsewhere, most Asian shares dropped, even as Chinese stocks powered ahead for a sixth day, although at a slower pace. The offshore yuan briefly strengthened through the 7 per dollar level for the first time since March.
Here are some key events coming up:
The EIA crude oil inventory report comes Wednesday.All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.
These are the main moves in markets:
Stocks
The S&P 500 Index fell 0.1% as of 10:33 a.m. New York time.The Stoxx Europe 600 Index sank 0.5%.The MSCI Asia Pacific Index declined 0.5%.The MSCI Emerging Market Index decreased 0.4%.
Currencies
The Bloomberg Dollar Spot Index gained 0.2%.The euro decreased 0.2% to $1.1282.The British pound rose 0.7% to $1.2576.The Japanese yen weakened 0.2% to 107.58 per dollar.
Bonds
The yield on 10-year Treasuries was little changed at 0.68%.Germany’s 10-year yield increased one basis point to -0.43%.Britain’s 10-year yield sank one basis point to 0.19%.
Commodities
West Texas Intermediate crude rose 0.4% to $40.79 a barrel.Gold rose 0.5% to $1,794.33 an ounce.
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