U.S. stocks jump as gold rebounds while Treasuries, yen retreat

Gold Watch

Gold for June delivery pared gains after climbing as much as 3.2% to $1,404.20 an ounce. Futures sank 13% in the previous two days. The drop was triggered by speculation that Cyprus would sell its gold reserves, leading other European central banks to follow suit, Goldman Sachs said in a report today.

Spot gold is down about 28% from its record high in September 2011. During its 12-year rally, gold has gained more than 500%. On an inflation-adjusted basis, it’s 43% lower than the record high.

Palladium advanced 3.7% to $677.58 an ounce and aluminum gained 2.6% to $1,914 a metric ton. Palladium declined 11% in the previous two days and platinum dropped 8.5%. Brent crude fell below $100 a barrel for the first time since July on signs economic growth will slow, curbing demand. West Texas Intermediate oil was little changed before a report that may show a U.S. supply gain.

Boston Explosions

Gauges of commodity, technology, financial and consumer- staples companies rose at least 1.5% to lead the rebound today after the S&P 500 sank 2.3% yesterday. The index extended losses late yesterday as explosions near the finish line of the Boston Marathon killed three people and left at least 128 in the hospital.

Coca-Cola rose 5.7%, the most in four years, after profit topped estimates as Latin American sales volume rose and the company announced a deal to sell some bottling distribution rights. BlackRock Inc., the world’s largest asset manager, had earnings of $3.65 per share, compared with an estimate of $3.57. The shares increased 1.3%. Goldman Sachs Group Inc. retreated 1.6% after the Wall Street bank that generates the highest percentage of its top line from trading reported revenue from that business fell more than its rivals.

Earnings topped analysts’ profit estimates at 71% of the 41 companies in the S&P 500 that have released quarterly results so far in the reporting season, with 56% exceeding revenue projections, according to data compiled by Bloomberg. First-quarter earnings at S&P 500 members are forecast to decline 1.4% from a year earlier, estimates compiled by Bloomberg show, marking the first year-over-year decrease since 2009.

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