The Standard & Poor’s 500 Index (CME:SPM14) fluctuated, after the biggest three-day rally in two months, as disappointing sales by Google Inc. and International Business Machine Corp. offset Morgan Stanley and General Electric Co. results. Treasuries fell and the dollar weakened against most of its Group of 10 peers.
The S&P 500 dropped less than 0.1 percent at 10:26 a.m. in New York, trimming its advance for the week to 2.5 percent. The Stoxx Europe 600 Index advanced 0.3 percent. The yield on U.S. 10-year Treasuries rose three basis points to 2.66 percent. The Bloomberg Dollar Spot Index dropped 0.1 percent, its first decline in five days, after Federal Reserve Chair Janet Yellen said yesterday the central bank has a “continuing commitment” to support the economy. Wheat jumped as much as 1.4 percent.
Google slid as rising costs and a shift of advertising to mobile phones curbed results, while IBM dropped after sales trailed projections. Morgan Stanley’s profit rose amid a surprise jump in fixed-income results and General Electric’s earnings were buoyed by expanding margins in its industrial businesses. Ukrainian forces killed three pro-Russian militants after an attack on a national guard base in the country’s east as U.S. officials and their European allies sat down with Ukraine and Russia to discuss the crisis.
“It’s all about earnings this time of the year,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees $376 billion, said in a telephone interview. “We’ve come through that quiet period that proceeds earnings, where the macro data takes the stage. Today company specific news will dominate.”
Financial markets in the U.S., U.K., Germany, Hong Kong, Singapore, Australia and New Zealand are among those that will be closed for a holiday tomorrow.
The S&P 500 rose yesterday, capping a three-day gain of 2.6 percent and erasing its loss for the year, as Yahoo! Inc. earnings topped estimates and industrial production climbed more than forecast. The gauge sank 2.7 percent last week, the most since 2012.
Twenty-five companies in the S&P 500 report earnings today. Profit per share for the index’s constituents probably dropped 0.9 percent in the first quarter, according to analyst estimates compiled by Bloomberg. Revenue climbed 2.6 percent from a year earlier, the projections show.
Google dropped 3.2 percent and IBM lost 3.7 percent. Morgan Stanley rose 3.3 percent today and GE jumped 1.5 percent. Goldman Sachs Group Inc. gained 1.2 percent.
Jobless claims increased by 2,000 to 304,000 in the week ended April 12 from a revised 302,000 the prior period that was the lowest since September 2007, a Labor Department report showed today in Washington. The median forecast of 47 economists surveyed by Bloomberg called for an increase to 315,000.
Thirteen of the 19 industry groups in the Stoxx 600 advanced, with trading volumes 19 percent lower than the 30-day average, according to data compiled by Bloomberg. The gauge jumped the most in more than a month yesterday.
SAP AG lost 2 percent after Germany’s biggest technology company reported quarterly sales and earnings that missed analysts’ estimates. Akzo Nobel NV slid 5 percent after the world’s largest decorative paints maker posted revenue that fell short of projections.
Remy Cointreau SA lost 3.1 percent after the maker of Remy Martin cognac said it expects to report a slump in annual earnings after sales fell more than analysts had anticipated on lower demand in China. Diageo Plc declined 3.8 percent after the world’s biggest distiller reported third-quarter sales that unexpectedly tumbled and said weakness in emerging markets will weigh on growth this year.
Carmakers gained after the European Automobile Manufacturer’s Association said European car sales advanced a seventh consecutive month. Daimler AG and PSA Peugeot Citroen rose at least 1.9 percent.
Publicis Groupe SA, the French company merging with Omnicom Group Inc. to form the world’s biggest advertising company, gained 2 percent after saying first-quarter sales rose.
The MSCI Emerging Markets Index rose 0.4 percent as India’s Sensex jumped 1.6 percent, gaining for the first time in four days.
Russia’s Micex Index fell 0.3 percent and the ruble strengthened 0.4 percent against the dollar.
Russian President Vladimir Putin said he “hopes” he won’t have to use his “right” to send troops to Ukraine. Three fighters died when police carried out an operation after about 300 people attacked a national guard base in the southeastern Ukrainian city Mariupol, Interior Minister Arsen Avakov said on Facebook. The U.S. and its European allies are threatening a new round of penalties against Russian interests unless Russia demonstrates it will pull back.
Wheat rebounded after falling 2 percent yesterday, on speculation that clashes in Ukraine and drought in the U.S. will disrupt supplies. Ukraine is the sixth-biggest shipper of wheat. West Texas Intermediate oil rose 0.2 percent to $103.97 a barrel and gold dropped 0.1 percent to $1,301.90 an ounce, the third consecutive decline.
The dollar fell 0.2 percent to $1.3843 per euro.