Stocks dip for third day, US yields rise after data By Reuters

Written by Chuck Mikolajczak

NEW YORK (Reuters) – A measure of global stocks fell for the third straight session on Friday, as investors digested the latest round of corporate earnings, while long-term U.S. yields slipped amid growing concerns about the Federal Reserve’s willingness to raise interest rates. in a slowing economy.

On Wall Street, it held near the unchanged mark, with the consumer goods sector rising 0.62%. Procter & Gamble (NYSE: NYSE: 3.54%) rose as the maker of products such as toothpaste and laundry detergent beat quarterly estimates and lifted turnover. prospects.

But the materials sector was weaker, down 1.25%, with Albermarle faltering 4.65% after Chile announced plans to nationalize its lithium industry.

Of the 88 S&P 500 companies that reported quarterly earnings through Friday, 76.1% beat expectations, according to Refinitiv data, well above the 66% average since 1994 and slightly better than 74% over the past four quarters.

Earnings are expected to decline 4.7% from the same period last year, an improvement from the 5.1% decline seen on April 1.

“Investors are OK with the earnings so far because less bad news is good news,” said Adam Sarhan, CEO of 50Park Investments. “The market is waiting to see if we can get some bullish earnings over the next few weeks from some of the big-cap technology stocks.”

It fell 73.29 points, or 0.22%, to 33,713.33 points. The S&P 500 lost 13 points, or 0.31%, to 4,116.79. It decreased 56.84 points, or 0.47%, to 12002.72.

Earnings from megacap names like Microsoft Corporation (NASDAQ:) and Alphabet (NASDAQ:) Inc., Google, are scheduled for next week.

Stocks showed little reaction to economic data released by S&P Global’s (NYSE:) Composite PMI Composite US Production Index, which said business activity in the US accelerated to an 11-month high in April.

Graphics: Flash PMI https://www.reuters.com/graphics/USA-STOCKS/gdvzqbyzopw/flashpmi.png

The European index rose 0.15% and the MSCI index of stocks around the world fell 0.39%. The MSCI index was on track for a third straight session of declines, the longest streak in nearly six weeks.

Eurozone economic data also showed that the region’s economic recovery unexpectedly picked up steam this month, with the HCOB’s composite PMI rising to an 11-month high.

Economic data this week largely indicated a slowdown in the US economy, although comments from a group of Federal Reserve officials indicated that the central bank was still likely to rise by 25 basis points at its meeting in May. Markets are currently pricing in an 86% chance of a 25 basis point hike in the May policy announcement, according to CME’s FedWatch tool.

While stocks showed little reaction to the PMI data, US Treasury yields rose.

The yield rose 1.5 basis points, to 3,560%.

The two-year US Treasury yield, which is usually in line with interest rate expectations, rose 1.4 basis points to 4.184%.

The dollar was on track for its first weekly gain in nearly two months as investors raised their bets on an increase in the Fed’s borrowing costs next month.

In currencies, the dollar also strengthened in the wake of the PMI report as it rose 0.157% and the euro fell 0.05% to $1.0961. The dollar was on track for its first weekly gain after five consecutive declines, the longest weekly period of weakness in nearly three years.

The Japanese yen fell 0.05% against the dollar, to 134.31 per dollar, while the pound sterling was last traded at $1.2394, down 0.39% on the day.

Crude oil prices rose slightly on the day, but are poised for weekly declines, as concerns about a rate hike and a looming recession weighed.

It recently rose 0.59% to $77.83 a barrel and was at $81.55, up 0.55% on the day.