Yen, euro jump as Europe bonds slide while U.S. stocks advance

U.S. Movers

Home Depot Inc., Verizon Communications Inc. and Pfizer Inc. rose more than 2% for the best advances in the Dow Jones Industrial Average, which rebounded after yesterday tumbling 217 points in its biggest decline since April 15.

SodaStream International Ltd. climbed 3.1% after an Israeli business website reported that PepsiCo Inc. is in talks to buy the home soda-machine maker for more than $2 billion. VeriFone Systems Inc. plunged 20% as the maker of credit- card terminals forecast profit that missed analysts’ estimates.

The S&P 500 slipped 3.6% from its record on May 21 through yesterday after Fed Chairman Ben S. Bernanke told Congress the central bank could reduce its $85 billion in monthly bond purchases if the job market improves in a “real and sustainable way.” The Fed’s quantitative easing and near- zero interest rates helped fuel a rally of as much as 147% from the benchmark index’s bear-market low in 2009.

The latest data on the labor market showed U.S. jobless claims decreased by 11,000 to 346,000 in the week ended June 1 from a revised 357,000, the Labor Department reported. The median forecast of 47 economists surveyed by Bloomberg called for a drop to 345,000.

Data tomorrow will probably indicate employment rose by 165,000 in May, the same as a month earlier, and the jobless rate held at 7.5%, economists in another Bloomberg survey forecast.

‘Wait and See’

“It’s wait-and-see before the jobs report tomorrow,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a telephone interview. His firm oversees $1.6 billion. “It all depends on how traders will read that data and its effect on the Fed’s decision making. We need to be assured that the Fed will not taper off monetary stimulus or we need to see significant improvement in the economy to get the next leg up in the rally.”

Five shares declined for each that rose in the Stoxx 600, with the regional benchmark index sinking to the lowest since April 22. Barclays Plc lost 4.1% as an investor sold a stake in the lender.

Markets in Paris, Amsterdam, Brussels and Lisbon opened an hour later than usual as NYSE Euronext, the operator of the exchanges, faced a technical glitch. Trading in Stockholm was closed for Sweden’s National Day holiday.

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