MARKET SNAPSHOT
Technology shares drove broad gains in U.S. stocks to kick off a busy week of earnings and economic data. Treasury yields were little changed, oil futures slipped and gold prices declined as geopolitical risks in the Middle East appeared to lessen. The dollar was flat.
MARKET WRAPS
EQUITIES
Stocks jumped, bouncing back after last week's dismal performance.
The S&P 500 gained 0.9%, ending a six-day streak of losses, with each of the benchmark index's 11 sectors finishing the day in the green. The tech-heavy Nasdaq Composite advanced 1.1% after falling 5.5% last week. The blue-chip Dow Industrial Average added 0.7%.
Easing tensions between Israel and Iran helped restore some market confidence. The market faces a string of tests in the coming days, however.
"Earnings from the mega-cap tech stocks will be more important than the inflation data this week," said Jay Hatfield, chief executive of Infrastructure Capital Advisors.
Earlier Monday, Chinese shares closed mostly lower, despite most Asian peers posting gains. China's PBOC kept its loan prime rate unchanged despite a better-than-expected reading on first-quarter GDP.
The benchmark Shanghai Composite Index fell 0.7%, the Shenzhen Composite Index declined 0.5% and the ChiNext Price Index slipped 0.3%. Hong Kong's Hang Seng Index, however, climbed 1.8%.
The Nikkei Stock Average rose 1.0%, led by gains in financial and food stocks, rebounding modestly from Friday's losses triggered by Israel's strike against Iran.
Australia's S&P/ASX 200 gained 1.1%, with all but one sector in the green, as the market rallied amid signs of no further escalation in Middle East tensions.
New Zealand's NZX-50 added 0.5%, led by gains in financial stocks.
COMMODITIES
Oil prices declined, with the global benchmark ending at its lowest level since late March as Middle East tensions appeared to ease, calming concerns over the potential for disruptions to global crude supplies.
Traders also shifted some of their focus back to inflation and the prospect of interest-rate cuts from the Federal Reserve this year.
West Texas Intermediate crude for May delivery fell nearly 0.4% to settle at $82.85 a barrel on the New York Mercantile Exchange on the contract's expiration day. June Brent crude lost 0.3% to end at $87 a barrel.
Overall, oil prices should "remain elevated until a more widespread easing of tensions in the region takes hold," or if OPEC+ "decides to bring more barrels into supply," said Gary Cunningham, director of market research at Tradition Energy.
Gold and silver futures dropped as investors priced in fading geopolitical tensions, with appetite swinging toward stocks and other assets perceived as riskier.
Gold futures for June delivery fell 2.8% to settle at $2,346.40 an ounce on Comex, marking the lowest finish since April 5, according to Dow Jones Market Data. May silver futures declined 5.5% to settle at $27.25 an ounce, the lowest finish since April 3.
"With Iran and Israel apparently backing away from any further direct confrontation for the time being, there was only so long that gold and silver could defy the gravity of rising bond yields and rising year-end [Federal Reserve interest] rate forecasts," said Adrian Ash, director of research at BullionVault.
TODAY'S TOP HEADLINES
Israel Moves Closer to Rafah Invasion as Iran Crisis Wanes
TEL AVIV-As tensions with Iran ease, Israel's military is gearing up to complete what it says is unfinished business: Uprooting Hamas from its last stronghold in the Gazan city of Rafah, where more than a million Palestinians are taking shelter.
Israeli leaders say they intend to go ahead despite vocal opposition from the country's most important ally, the U.S., which has warned that a full-scale move on the enclave could cause widespread civilian casualties and disrupt humanitarian-aid efforts aimed at preventing famine.
"In the coming days, we will increase the military and diplomatic pressure on Hamas because it's the only way to release our hostages and achieve our victory," Israeli Prime Minister Benjamin Netanyahu said Sunday in a message to mark Judaism's Passover holiday, which begins Monday evening.
Honda, Canada on Verge of Deal to Build EV-Assembly Plant in Ontario
Honda Motor is nearing a deal to assemble electric vehicles and components in Canada, with the government agreeing to partly offset the Japanese auto maker's capital costs through recently unveiled tax breaks, people familiar with the matter said.
A formal announcement is expected as early as Thursday, according to one person familiar with the deliberations. The Premier of Ontario, Doug Ford, told a conference Monday about a pending new auto-related investment which he said would be among the largest on record. Ontario is also home to Canada's auto sector.
"We've landed a new deal," said Ford, who governs Canada's largest province by population and gross domestic product. "We'll be announcing it this week."
Disney Technology Chief Departs
Aaron LaBerge, a top Disney technology executive involved in major projects from ESPN's streaming efforts to Hulu's integration with Disney+ and a new sports-betting venture, is leaving the company and will be joining betting company Penn Entertainment.
Penn said Monday it named LaBerge as its new chief technology officer, effective July 1.
LaBerge's departure comes amid several high-stakes technological initiatives within Disney as it works to build a streaming-centric future. He has played a key role in building the technological backbone of the entertainment giant's streaming strategy, including work on a direct-to-consumer version of its flagship ESPN sports network.
Tesla, Li Auto Cut Prices in China as EV Competition Heats Up
Tesla and Li Auto are engaged in an intensifying price war in China, undercutting each other as sales of electric and hybrid vehicles in the world's largest auto market surpassed those of traditional cars for the first time.
Chinese hybrid specialist Li Auto lowered prices by up to 30,000 yuan, equivalent to $4,144, for all models, including its L7, L8, L9 series and its new, full-electric MEGA model, the company said Monday on its Weibo and WeChat accounts.
Tesla cut prices by 14,000 yuan for its 3, Y, S and X models, its website showed Sunday, after lowering prices in the U.S. and Europe in recent days. The world's most valuable automaker is facing several headwinds, including a slowdown in electric-vehicle demand and increased competition from China.
Verizon Communications Results Lifted by Price Hikes
Verizon Communications' revenue was up slightly in the first quarter as the company lost fewer postpaid phone connections than expected and benefited from higher prices for its plans.
The wireless carrier reported a profit of $4.72 billion, or $1.09 a share, in the quarter ended March 31, compared with $5.02 billion, or $1.17 a share, a year earlier. Analysts polled by FactSet had expected per-share earnings of $1.09.
Stripping out certain one-time items, adjusted per-share earnings came to $1.15, ahead of the $1.12 forecast by analysts, according to FactSet.
Expected Major Events for Tuesday
00:30/JPN: Apr Japan Flash Manufacturing PMI
05:00/SIN: Mar CPI
05:00/JPN: Mar Supermarket sales
08:00/TAI: Mar Industrial output
08:30/HK: Mar CPI
08:59/JPN: Apr Monthly Economic Report
21:00/SKA: Apr Consumer Sentiment Index
22:45/NZ: Mar Overseas Merchandise Trade
23:50/JPN: Mar Services Producer Price Index
All times in GMT. Powered by Onclusive and Dow Jones.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
April 22, 2024 17:05 ET (21:05 GMT)
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