(Bloomberg) — The rally in stocks continued on Wednesday with Facebook owner Meta Platforms Inc. due to report as the earnings season picked up pace and technology shares powered ahead.
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Tesla Inc. jumped more than 10% in premarket trading after Elon Musk vowed to launch less-expensive vehicles as soon as late this year. Chipmaker Nvidia Corp. and Meta were quoted about 2% higher. Boeing Co. rose as much as 4.2% after posting a less-dramatic cash burn than analysts expected. The yen weakened beyond 155 per dollar for the first time in more than three decades, fueling risk that the key level may prompt Japan’s Ministry of Finance to step into the market.
US March Durable Goods Orders Rose 2.6%, Above Est.
For now, earnings optimism is offsetting market concern the US will keep rates higher for longer. Attention will be on Meta as the next of the so-called Magnificent Seven group of companies to update the market after a strong performance by US tech giants on Tuesday. International Business Machines Corp. is also due to release results.
“It is a big week for earnings — by the end of the week we’ll have seen around 40-45% of earnings in the US and we will have some real test cases,” said Nathan Thooft, chief investment officer for multi-asset solutions at Manulife Asset Management.
In Europe, the Stoxx Europe 600 briefly erased its advance as a surge in the shares of ASM International NV on better-than-expected orders was offset by declines for Lloyds Banking Group Plc, which came in short of estimates for lending income. Luxury names also dropped as Kering SA tumbled after warning that profit will plunge on slowing sales at Gucci, its biggest brand.
US Treasuries pared gains seen on Tuesday after weakness in US business data revived forecasts for Federal Reserve policy easing this year. The 10-year yield ticked higher, while a gauge of the dollar was steady. The US will sell $70 billion of five-year notes at 1 p.m. New York time, the largest amount ever offered for such a tenor.
In other earnings and corporate news:
Boeing Co. burned through $3.93 billion in cash in the first quarter, a less dramatic drain than analysts had expected, as the embattled planemaker continues to slow output to get a handle on its manufacturing issues.
Biogen Inc. reported first-quarter profit that beat Wall Street’s expectations, as the biotech giant cut costs and its new Alzheimer’s drug Leqembi gained momentum.
UBS Group AG Chairman Colm Kelleher said that the Swiss government’s proposal to require the bank to hold substantially more capital is the “wrong remedy” to the failings that brought down Credit Suisse over a year ago
Evotec SE shares plummeted as much as 31% after the German pharmaceutical firm’s full-year results showed weak guidance.
Volvo Car AB tumbled as much as 8.8% after the Swedish carmaker missed first-quarter earnings estimates.Story continuesElsewhere, the yen remained a whisker away from the key 155 level to the dollar, with a former top Japanese foreign exchange official warning the country is on the brink of currency intervention.
Oil dipped before the release of weekly US stockpile data. Gold ticked down ahead of US data due later this week that may shed more light on the Fed’s rate path.
Key events this week:
IBM, Boeing, Meta Platforms earnings, Wednesday
Malaysia CPI, Thursday
South Korea GDP, Thursday
Turkey rate decision, Thursday
US GDP, wholesale inventories, initial jobless claims, Thursday
Microsoft, Alphabet, Airbus, Caterpillar earnings, Thursday
Japan rate decision, Tokyo CPI, inflation and GDP forecasts, Friday
US personal income and spending, University of Michigan consumer sentiment, Friday
Exxon Mobil, Chevron earnings, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 8:32 a.m. New York time
Nasdaq 100 futures rose 0.8%
Futures on the Dow Jones Industrial Average were little changed
The Stoxx Europe 600 rose 0.2%
The MSCI World index rose 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.0690
The British pound was little changed at $1.2440
The Japanese yen was little changed at 154.96 per dollar
Cryptocurrencies
Bitcoin rose 0.5% to $66,663.2
Ether rose 2.2% to $3,279.54
Bonds
The yield on 10-year Treasuries advanced four basis points to 4.64%
Germany’s 10-year yield advanced six basis points to 2.57%
Britain’s 10-year yield advanced eight basis points to 4.32%
Commodities
West Texas Intermediate crude fell 0.5% to $82.93 a barrel
Spot gold fell 0.2% to $2,316.61 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Winnie Hsu, Michael Msika, Jan-Patrick Barnert, Julien Ponthus and Alice Atkins.
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