(Bloomberg) — Treasury yields edged higher after solid economic data spurred bets the Federal Reserve will be in no rush to cut interest rates.
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Ahead of the start of the Fed’s pre-meeting silent period, the bond market saw mild losses. That’s a day after dip buyers resurfaced to snatch Treasuries at attractive yields, triggering a wave of short-covering. Equity futures wavered after a four-day losing streak that drove the S&P 500 closer to technically “oversold” levels.
Initial applications for US unemployment benefits remained subdued last week, consistent with a healthy job market. Separately, the Philadelphia Fed gauge of manufacturing activity topped estimates.
Traders will also keep an eye on remarks from central bank officials. Late Wednesday, Fed Bank of Cleveland President Loretta Mester said monetary policy is in a good place, adding that the central bank shouldn’t be in a hurry to cut interest rates. And Governor Michelle Bowman noted that progress on inflation may have stalled.
Treasury 10-year yields advanced one basis point to 4.60%. S&P 500 futures fluctuated alongside the dollar.
Corporate Highlights:
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Micron Technology Inc., the largest US maker of computer-memory chips, is poised to get $6.1 billion in grants from the Commerce Department to help pay for domestic factory projects, part of an effort to bring semiconductor production back to American soil.
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Taiwan Semiconductor Manufacturing Co. delivered a better-than-projected revenue outlook and stuck with plans to spend as much as $32 billion in 2024, shoring up expectations of sustained growth in AI demand.
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Infosys Ltd. forecast tepid sales growth for the year, a sign that overseas clients are limiting tech spending until the global economy picks up speed.
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D.R. Horton Inc. increased sales expectations for its full fiscal year as the US housing market heads into its key spring selling season.
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Alaska Air Group Inc. expects second-quarter profits will top analyst estimates, signaling that the carrier is recovering from a near-catastrophe on one of its planes that triggered the temporary grounding of a key Boeing Co. aircraft model.
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Las Vegas Sands Corp. said renovations at an entertainment center and a hotel in Macau will crimp results this year.
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EBay Inc.’s embrace of artificial intelligence has turned the stock’s most bearish analyst into its biggest fan, with Morgan Stanley seeing a further 25% gain for the shares over the next year.
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Blackstone Inc. collected more fees from big retail funds and credit strategies during the first quarter, compensating for the slower pace of deal exits.
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Ally Financial Inc.’s profit fell short of estimates as the lender struggled to fully benefit from recovering US auto sales.
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Elevance Health Inc. raised its outlook for the year on first-quarter results that offered some relief to investors after a cyberattack against a rival roiled the health-insurance sector.
Key events this week:
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Japan CPI, Friday
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BOE Deputy Governor Dave Ramsden and ECB Governing Council member Joachim Nagel speak, Friday
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Chicago Fed President Austan Goolsbee speaks, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures rose 0.2% as of 8:54 a.m. New York time
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Nasdaq 100 futures rose 0.2%
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Futures on the Dow Jones Industrial Average rose 0.2%
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The Stoxx Europe 600 was little changed
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The MSCI World index rose 0.1%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0665
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The British pound was little changed at $1.2461
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The Japanese yen was little changed at 154.40 per dollar
Cryptocurrencies
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Bitcoin rose 2.2% to $62,182.9
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Ether rose 1.7% to $3,022.99
Bonds
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The yield on 10-year Treasuries advanced one basis point to 4.60%
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Germany’s 10-year yield declined one basis point to 2.46%
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Britain’s 10-year yield declined two basis points to 4.24%
Commodities
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West Texas Intermediate crude was little changed
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Spot gold rose 1% to $2,384.70 an ounce
This story was produced with the assistance of Bloomberg Automation.
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