U.S. Stocks Advance With Dollar, Treasuries: Markets Wrap

(Bloomberg) -- U.S. stocks rose for a third day as strong results from Berkshire Hathaway Inc. lifted financial shares and higher oil prices boosted energy producers. The dollar and Treasuries advanced.

The S&P 500 Index closed at its highest since January. Dividend-paying financial firms led gains. The Bloomberg Dollar Spot Index climbed for the fourth time in five sessions, while the pound weakened to an 11-month low on Brexit angst. U.S. crude headed for $69 a barrel. The yield on 10-year Treasuries fell to 2.94 percent. The Cboe Volatility Index fell to 11.24, the lowest since Jan. 26.

“There are certainly reasons for concern. The potential of a trade war leads the list,” Matt Maley, equity strategist at Miller Tabak + Co., wrote in a note to clients this morning. “Then again, there have been reasons for concern all year. And yet, that hasn't stopped the stock market from bouncing back strongly from its February lows.”
Berkshire's results and comments from JPMorgan Chase & Co. bolstered financial firms even as Treasury yields remained below 3 percent. Investors largely shrugged off early concern sparked by China's signal it won't flinch in a trade war, adding to heightened rhetoric from U.S. President Donald Trump. The Asian country on Friday stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the milestone of 7 per dollar.

Elsewhere, Turkey's lira fell for a sixth day, while a basket of emerging market currencies held steady.

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Here are some key events coming up this week:

• Earnings season includes results from: Japan Post Bank, Disney, 21st Century Fox, Deutsche Telekom, China Mobile, Glencore and Adidas.
• Tuesday brings the latest Reserve Bank of Australia meeting that is forecast to produce no change in either the record-low cash rate or the long-term guidance.
• The Bank of Japan releases a summary of opinions Wednesday from its July 30-31 meeting, at which it tweaked elements of its stimulus policy to make it more sustainable.
• Samsung Electronics unveils its next Galaxy Note smartphone.
• U.S. consumer prices probably rose in July, consistent with a pickup in inflation that's projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday's release.

These are the main moves in markets:

Stocks

• The S&P 500 Index rose 0.4 percent to 2,850.54 at 4 p.m. New York time.
• The Nasdaq 100 Index added 0.6 percent and small caps climbed 0.6 percent.
• The Stoxx Europe 600 Index dipped 0.1 percent.
• The MSCI All-Country World Index rose less than 0.1 percent.
• The MSCI Emerging Market Index fell 0.2 percent.

Currencies

• The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in more than two weeks.
• The euro fell 0.2 percent to $1.154, reaching the weakest in almost 13 months on its fifth straight decline.
• The British pound dipped 0.5 percent to $1.2938, the weakest in about 11 months.
• The Japanese yen declined 0.2 percent to 111.44 per dollar.

Bonds

• The yield on 10-year Treasuries fell one basis point to 2.94 percent.
• Germany's 10-year yield fell less than two basis points to 0.389 percent, the lowest in more than a week.

Commodities

• The Bloomberg Commodity Index declined 0.2 percent.
• West Texas Intermediate crude climbed 0.5 percent to $68.83 a barrel.
• Gold futures fell 0.7 percent to $1,215.10 an ounce.

--With assistance from Andreea Papuc, Cecile Vannucci, Adam Haigh and Eddie van der Walt.

To contact the reporters on this story: Jeremy Herron in New York at jherron8@bloomberg.net;Randall Jensen in New York at rjensen18@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Todd White

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