U.S. Stocks Advance With Dollar, Treasury Yields: Markets Wrap

(Bloomberg) -- U.S. stocks extended records with an eighth straight gain, the dollar rose to a two-month high and Treasuries dipped as a batch of U.S. data and hawkish Fed speakers strengthened the case for higher rates.

The S&P 500 Index capped its longest winning streak since July 2013, with tech shares pacing gains as the prospect for faster economic growth got a lift from better-than-forecast factory orders. The CBOE Volatility Index closed at a record low in data going back to 1990. U.S. 10-year note yields edged higher, and the dollar pushed its gain in the past month to 2 percent as comments by regional Fed President John Williams reinforced optimism in the economy. The U.S. government releases September jobs data Friday.

In Asian markets, holidays this week across the region and a lack of major economic data may curb trading. The Japanese yen was little changed after Bank of Japan Deputy Governor Hiroshi Nakaso commented on inflation during a speech in London.

“The data we've had has been pretty good and again hawkish -- better than the inflation data we got with the PCE data last week,” Michael O'Rourke, chief market strategist at JonesTrading Institutional Services LLC, said by phone. “There's more re-pricing necessary in bonds, especially considering we're seeing pretty good economic data that's definitely going to keep the Fed on course.”

European markets firmed Thursday after reports that Catalans were stalling their push for independence from Spain. That sent the nation's bond yields and equities higher. Minutes from the European Central Bank released showed members discussed how to adjust monetary stimulus next year as policy makers raised concern about the rapid appreciation of the euro.

Terminal subscribers can read more in our Markets Live blog.

Coming Up:

• The U.S. September nonfarm payrolls report, likely to be affected by the impact of hurricanes on southern states, comes out on Friday. Read here why a better look at the data will be coming on Oct. 20.

Here are the main moves in markets:

Stocks

• The S&P 500 Index advanced 0.6 percent to a record 2,552.07 at 4 p.m. New York Time.
• The Dow Jones Industrial Average added 114 points to 22,755, rising for the seventh day in a row to a record.
• The Nasdaq 100 Stock Index rose 1 percent to 6,057.
• The Stoxx Europe 600 Index gained 0.2 percent after falling as much as 0.3 percent.
• Spain's IBEX Index rose 2.5 percent, the most since in almost six months.

Currencies

• The Bloomberg Dollar Spot Index increased 0.6 percent, touching the highest in 11 weeks.
• The Japanese yen fell less than 0.1 percent.
• The Australian dollar dropped 0.9 percent to $0.7793.
• The euro declined 0.5 percent to $1.1705.
• The British pound fell 1 percent to $1.3114, the weakest in four weeks.

Bonds

• The yield on 10-year Treasuries rose two basis points to 2.34 percent.
• Germany's 10-year yield rose less than one basis point to 0.46 percent.
• Spain's 10-year yield fell 9 basis points to 1.699 percent.

Commodities

• West Texas Intermediate crude gained 1.4 percent to settle at $50.86 a barrel.
• Gold fell 0.6 percent to $1,267.80 an ounce.
• Copper surged 2.9 percent to $304 per pound, the biggest gain in more than five weeks.

--With assistance from Sarah Ponczek and Sophie Caronello

To contact the reporter on this story: Randall Jensen in New York at rjensen18@bloomberg.net.

To contact the editor responsible for this story: Jeremy Herron at jherron8@bloomberg.net.