Hello. I'm Dave Sebastian, here to bring you up to speed with Tuesday's markets.
The barnstorming rally in gold continues, with the precious metal on course to set yet another record. More broadly, markets were subdued, with U.S. stock futures little changed in recent trading, and bond yields ebbing.
In Monday trading, benchmark Treasury yields hit new highs for this year , while stock indexes were muted.
Follow our live coverage throughout the day for the latest news affecting markets.
Meanwhile, our Bob Henderson has more on the surges in gold and other commodities, and how the rally could set back the Federal Reserve's plan to cut interest rates.
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Stocks to Watch
Tesla $(TSLA)$ : The electric-vehicle company reached a settlement with the family of a driver who died in a 2018 crash involving its Autopilot system, days before attorneys were poised to deliver opening statements.
BP $(BP)$ , (UK: BP) : The British energy giant said it expects higher oil and gas production to boost its first-quarter profit . U.S.-listed shares climbed before the bell, mirroring a 1.9% gain in London.
Newmont $(NEM)$ and Barrick Gold $(GOLD)$ : The gold miners' shares climbed in premarket trading, as the metal continues to set new records . Newmont stock has risen about 10% in April.
HSBC $(HSBC)$ , (UK: HSBA) : The global banking giant agreed to sell its Argentina business , and forecast a $1 billion hit to first-quarter pretax profit.
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Commodities Rally Reflects a Better Economy, but Also Poses Inflation Risks
By Bob Henderson
A surge in prices for the raw materials that power manufacturing and transportation shows investors betting on a prolonged expansion-and a potential rebound in inflation.
An index of global commodities prices, the S&P GSCI, has advanced 12% this year, outpacing the S&P 500's 9.1% climb. Copper and oil have gained more than 10% and 17%, respectively. Even gold is posting fresh records, rising 13% to $2,332 a troy ounce.
The rally is rooted in expectations that economic growth will increase demand from the U.S. and China, analysts said. A pair of reports last week showing recoveries in both countries' manufacturing sectors helped spark a fresh wave of buying. That extended an upswing that has boosted shares of energy and materials companies while threatening to lift the price of gasoline just ahead of summer driving season.
And many expect the climb could continue for some time. Real income growth has sparked a reacceleration in global goods demand that is likely to propel commodity prices even higher, the commodities-strategy team at Macquarie Group said.
Keep reading .
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Charting the Markets
The closer Paramount Global gets to finding an actual buyer, the less the company seems to be worth, writes Heard on the Street's Dan Gallagher .
The world is already producing less copper than it consumes. The artificial-intelligence boom could worsen that supply-demand imbalance , Trafigura's chief economist says.
The number of private-equity exits remains stunted compared with a couple of years ago, but first-quarter activity shows some positive signs for an industry that is running against the clock to return cash to investors.
Must Reads
JPMorgan Chase Chief Executive Jamie Dimon warned that U.S. interest rates could soar to 8% or more in coming years, reflecting the risk that record-high deficit spending and geopolitical stress will complicate the fight against inflation.
Blackstone agreed to buy Apartment Income REIT, an owner of upscale apartment buildings. The $10 billion deal signals that one of the world's largest real-estate investors is ramping up investments again after a period of caution.
Treasury Secretary Janet Yellen used a trip to Beijing to warn her counterparts against China's export practices . The pointed message-delivered in Beijing and in Guangzhou, a metropolis in China's industrial south-will test a delicate detente between the U.S. and China.
More:
Heard on the Street: Sorry, but Blood Tests Won't Replace Stool Samples or Colonoscopies Yet Biden Is Spending $1 Trillion to Fight Climate Change. Voters Don't Care. Utah's Tech Hub Powers America's Hottest Job Market This Day in Markets On this day in 1867, the U.S. Senate ratified the Alaska Purchase, negotiated by Secretary of State William H. Seward with Russia's government. For $7.2 million, the U.S. became the new owner of 586,412 square miles of what the public cynically called "Seward's Icebox." About Us
We want to be the first place you go to get ready for the opening bell every day. This newsletter was written by Dave Sebastian ( @depsebastian ) in Hong Kong.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
April 09, 2024 06:26 ET (10:26 GMT)
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