Traders took a pause after the S&P 500 and Dow logged fresh record highs last week.
(Bloomberg) -- Futures followed stocks lower Monday as investors braced for a flood of earnings amid doubts about an uneven economic recovery.U.S. equity futures slipped across the board following a third straight week of gains and fresh records for the S&P 500 Index. In Europe, retailers and travel companies led declines on the Stoxx Europe 600 Index.The yield on 10-year Treasuries steadied before a round of auctions that will be widely watched for their potential to extend the rate surge that’s shaken stocks to commodities to emerging markets this year. The U.S. sells three-, 10- and 30-year Treasuries at the start of the week.While the U.S. recovery is accelerating, parts of Europe and South America are beset by rising Covid-19 cases and troubled vaccination rollouts. The rotation toward cyclical and small-cap stocks appears to have stalled as well, prompting worry about the strength of the U.S. economic comeback at the start of earnings season.“The breakdown of small caps and cyclicals is a potential early warning sign that the actual reopening of the economy will be more difficult than dreaming about it,” Morgan Stanley strategist Mike Wilson wrote in a client note.At the same time, massive government spending and central-bank stimulus could stoke excessive inflation. In an interview aired Sunday with CBS’s 60 Minutes, Federal Reserve Chair Jerome Powell sought to provide reassurance that any surge in price pressures won’t last.Elsewhere, oil rose after the dollar retreated. Bitcoin neared an all-time high before a listing by the largest U.S. cryptocurrency exchange.Some key events to watch this week:Banks and financial firms begin reporting first-quarter earnings, including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.U.S. officials and company executives are due to discuss the global shortage of computer chips on Monday.The U.S. releases inflation data Tuesday.Chinese trade data are scheduled for Tuesday.Economic Club of Washington hosts Fed Chair Jerome Powell for a moderated Q&A on Wednesday.U.S. Federal Reserve releases Beige Book on Wednesday.U.S. data including initial jobless claims, industrial production and retail sales come Thursday.China economic growth, industrial production and retail sales figures are on Friday.These are some of the main moves in financial markets:StocksFutures on the S&P 500 Index dipped 0.1% as of 12:41 p.m. London time.The Stoxx Europe 600 Index decreased 0.2%.The MSCI Asia Pacific Index decreased 0.7%.The MSCI Emerging Market Index fell 0.9%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.1%.The euro increased 0.1% to $1.191.The British pound jumped 0.4% to $1.376.The onshore yuan strengthened 0.1% to 6.544 per dollar.The Japanese yen strengthened 0.3% to 109.31 per dollar.BondsThe yield on 10-year Treasuries gained one basis point to 1.66%.The yield on two-year Treasuries increased less than one basis point to 0.16%.Germany’s 10-year yield fell one basis point to -0.31%.Japan’s 10-year yield decreased less than one basis point to 0.108%.Britain’s 10-year yield advanced one basis point to 0.784%.CommoditiesWest Texas Intermediate crude gained 1.3% to $60.09 a barrel.Brent crude gained 1.4% to $63.82 a barrel.Gold was little changed at $1,743.18 an ounce.For 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.
U.S. stock index futures dipped on Monday after the S&P 500 and the Dow closed at record levels in the previous session, as investors geared up for the start of the earnings season and a key inflation report this week. A pullback in the benchmark 10-year bond yield from 14-month highs in April eased worries about higher borrowing costs, helping richly valued high-growth technology stocks gain ground and drive the S&P 500 and the Dow to record levels. U.S. consumer price data for March and $271 billion of U.S. Treasury auction this week could end a recent lull in the bond market, reigniting a rise in yields that worried investors in the first quarter.