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Stocks Advance in Busy Week for Economic Reports: Markets Wrap

(Bloomberg) — Stocks rose as traders assessed corporate earnings and economic data — with inflation remaining at the forefront of the investment debate. The dollar fell, while Treasuries advanced.

Gains in commodity, health-care and industrial shares in the S&P 500 offset losses in technology and retail companies. Giants Tesla Inc. and Inc. dragged down the Nasdaq 100. 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 known as Covax.

A report Monday showed growth at U.S. manufacturers cooled in April, while a gauge of prices paid for materials jumped to the highest since 2008. Federal Reserve Chair Jerome Powell said that 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 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 Friday

These are some of the main moves in markets:


The S&P 500 rose 0.3% as of 3:33 p.m. New York timeThe Nasdaq 100 fell 0.4%The Dow Jones Industrial Average rose 0.8%The MSCI World index rose 0.2%


The Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.4% to $1.2063The Japanese yen rose 0.2% to 109.09 per dollar


The yield on 10-year Treasuries declined two basis points to 1.61%Germany’s 10-year yield was little changed at -0.20%


West Texas Intermediate crude rose 1.3% to $64 a barrelGold futures rose 1.4% to $1,792 an ounce

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