(Bloomberg) -- U.S. equity futures were steady after data showed jobless claims fell more than forecast last week. The dollar stayed lower alongside Treasuries.Contracts on the S&P 500 Index were little changed as initial claims dropped to 498,000 in the week ended May 1, compared with a median estimate of 538,000 claims. Traders will be parsing the reading for clues on what Friday’s hotly-anticipated payrolls number might bring.Tesla Inc. shares gained in pre-market trading on a report that its second-quarter production capacity is already sold out. Iron ore climbed and steel futures hit fresh records amid renewed demand from China.The Stoxx 600 Index swung from a gain to a loss on a mixed batch of corporate results. Vaccine makers plunged after the European Union backed a plan to discuss waiving vaccine-patent protections. The pound swung after the Bank of England slowed the pace of its bond buying while leaving rates unchanged.Amid strong labor-market data, investors are increasingly focused on when the Federal Reserve might start throttling back its emergency support. Economists surveyed by Bloomberg expect the Fed will announce a reduction in the pace of bond purchases in the fourth quarter. While Chair Jerome Powell hasn’t yet shifted from his message that it’s too soon to discuss such a move, policy makers have begun to address the issue more directly.Boston Federal Reserve President Eric Rosengren suggested that the U.S. mortgage market no longer needs as much support, advancing the debate on when the central bank might start tapering its monthly bond purchases. Meanwhile, the U.S. Treasury’s auction schedule suggested the government’s financing needs may have peaked.With Covid-19 cases starting to roll over, “reopening prospects should improve again, and the reflation trade should gather steam again over the coming months,” Esty Dwek, head of global market strategy at Natixis Investment Managers Solutions, said in a note. “The medium-term supports for equities remain unchanged.”Elsewhere, Asia stocks were mixed, with shares falling in China as officials announced a formal suspension of an economic dialogue with Australia, a further deterioration of relations between the two countries.Here are some key events to watch this week:The April U.S. employment report is released on FridayFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Australian shares closed higher on Tuesday as the RBA raised its economic growth forecast and kept interest rates on hold.
(Bloomberg) -- Stocks closed near Monday’s lows as giants Tesla Inc. and Amazon.com Inc. weighed on the Nasdaq 100. Traders also parsed economic data, with inflation remaining at the forefront of the investment debate. The dollar dropped, while Treasuries rose.Tech and retail companies in the S&P 500 fell, while commodity and industrial shares gained. Pfizer Inc. climbed as the Biden administration will support its move to begin exporting U.S.-made doses of the coronavirus vaccine, while Moderna Inc. rallied after agreeing to provide as many as 500 million doses of its shot to the global program Covax. Estee Lauder Cos. sank as the cosmetics giant’s sales missed estimates.A report Monday showed that growth at U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Federal Reserve Chairman Jerome Powell said the economic recovery is “making real progress,” but the gains have been uneven following a downturn that cut hard along lines of race and income. New York Fed President John Williams noted that current conditions are “not nearly enough” for a shift in the monetary policy stance.Markets have been obsessed over whether higher inflation is coming. Faced with rising prices for everything from lumber to oil and computer chips, chief executive officers have cut costs and boosted prices for their products. The strategy appears to be working, with first-quarter income from S&P 500 companies jumping five times as fast as sales, according to data compiled by Bloomberg Intelligence.“The earnings season, the economic recovery and the Covid trends -- that’s still going to be the near-term catalyst -- and looking for any hints of change in direction from the Fed,” said Keith Lerner, chief market strategist at Truist Advisory Services.Ignoring the adage “sell in May and go away” may reward stock investors in 2021, according to LPL Financial. The firm cited the S&P 500’s track record during the past decade in a blog post. In eight of those years, the gauge posted gains for the six months ended in October. Last year’s rally was 12%, the biggest since 2009, when a bull market was just getting started. The benchmark produced an average advance of 3.8% for all 10 years, beating a 1.7% average since 1950.Here are some key events to watch this week:U.S. trade balance, factory orders, durable goods are due TuesdayThe Reserve Bank of Australia monetary policy decision is scheduled for TuesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on FridayThese are some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 4 p.m. New York timeThe Nasdaq 100 fell 0.4%The Dow Jones Industrial Average rose 0.7%The MSCI World index rose 0.2%CurrenciesThe Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.2062The Japanese yen rose 0.2% to 109.10 per dollarBondsThe yield on 10-year Treasuries declined two basis points to 1.60%Germany’s 10-year yield was little changed at -0.20%CommoditiesWest Texas Intermediate crude rose 1.4% to $64 a barrelGold futures rose 1.4% to $1,793 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.