U.S. Stocks Fluctuate as Aid-Deal Talks Continue: Markets Wrap

(Bloomberg) -- U.S. stocks swung between gains and losses as lawmakers in Washington continue to haggle over a spending bill. Treasuries slumped.The S&P 500 was without direction after a small boost when House Speaker Nancy Pelosi said she’s “hopeful” about reaching a deal with the White House. Energy companies rebounded from Wednesday’s selloff as oil powered higher. Tech shares underperformed. AT&T Inc. rallied after the phone giant added more wireless subscribers than analysts estimated. The dollar strengthened, while 10-year Treasury yields climbed to the highest since June.While Pelosi signaled optimism on a deal with the administration, opposition remains in the Republican-controlled Senate, making a deal before the election less likely. Data showed a drop in jobless claims, suggesting the labor market is still gradually recovering.“Earnings are heating up and they are generally coming in healthy and better than expected. But with the stimulus saga dragging on and the election looming, macro influences will continue to dominate market internals until there’s some clarity,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote in a note.In Europe, the Stoxx Europe 600 Index was lower. Luxury handbags and scarves house Hermes International rose after surpassing analysts’ sales estimates on a rebound in demand from Asia. The MSCI Asia Pacific Index slid. Gold declined, and copper slipped after topping $7,000 a ton for the first time in more than two years.With no meaningful progress on fiscal policy, markets “are reacting to the heightened political instability that comes with the confirmation of efforts to manipulate the presidential race,” said Eleanor Creagh, a Sydney-based strategist at Saxo Capital Markets. “The ability for either candidate to seize upon accusations of foreign interference is heightened and raises the probability of a contested outcome, particularly as the race could be closer than polls currently indicate.”Around the world, there is also increasing evidence that the pandemic is worsening. German infections have jumped to a record and Spain’s heath minister said the spread of coronavirus is out of control in certain parts of the country. U.S. hospitalizations for Covid-19 have reached a two-month high.Here are some key events coming up:The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.These are some of the main market moves:StocksThe S&P 500 Index rose 0.3% as of 1:10 p.m. New York time.The Nasdaq 100 dropped 0.2%.The Stoxx Europe 600 Index dropped 0.3%.The MSCI Asia Pacific Index decreased 0.8%.The MSCI Emerging Market Index fell 0.4%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro fell 0.3% to $1.1822.The British pound decreased 0.4% to $1.3093.The Japanese yen weakened 0.2% to 104.83 per dollar.BondsThe yield on 10-year Treasuries added two basis points to 0.84%.The two year rate added one basis point to 0.15%Germany’s 10-year yield rose one basis point to -0.58%.Britain’s 10-year yield climbed three basis points to 0.27%.CommoditiesWest Texas Intermediate crude increased 1.4% to $40.60 a barrel.Gold futures weakened 1.4% to $1,902.20 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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