Tech Leads Stock Gains After Earnings, CPI Data: Markets Wrap

(Bloomberg) — Technology companies drove a rebound in stocks as traders assessed corporate earnings and a report showing a faster-than-expected rise in consumer prices last month.

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The S&P 500 halted a three-day drop, while the tech-heavy Nasdaq 100 outperformed. Earlier Wednesday, equity futures fell after data showed the consumer-price index increased 0.4%, versus an estimate for a 0.3% monthly gain.

The question of how inflation will play out on a nascent economic recovery is likely to dominate discussion as earnings season kicks off. The reports will provide a measure of how businesses are coping with supply-chain snarls and rising costs, all while economic growth is slowing and central banks begin to pare back pandemic stimulus.

Some corporate highlights:

• JPMorgan Chase & Co.’s dealmakers posted their best quarter yet, riding what’s on track to be a record year for mergers and acquisitions.

• Delta Air Lines Inc. reported the first quarterly profit excluding federal aid at a major U.S. carrier since the start of the pandemic but said rising jet fuel prices are a threat to staying in the black.

• Apple Inc., the world’s most valuable company, will likely slash its projected iPhone 13 production targets for 2021, Bloomberg News reported Tuesday.

European equities advanced as news that German software giant SAP increased its revenue forecast led tech stocks higher. Most Asian stock markets rose, but regional gains were capped by a small move lower in Japan and the cancellation of trading in Hong Kong due to typhoon Kompasu.

Here are a few events to watch this week:

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For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 9:30 a.m. New York time

• The Nasdaq 100 rose 0.6%

• The Dow Jones Industrial Average was little changed

• The Stoxx Europe 600 rose 0.6%

• The MSCI World index rose 0.3%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%

• The euro rose 0.3% to $1.1566

• The British pound rose 0.3% to $1.3631

• The Japanese yen rose 0.1% to 113.45 per dollar

Bonds

• The yield on 10-year Treasuries declined three basis points to 1.55%

• Germany’s 10-year yield declined five basis points to -0.13%

• Britain’s 10-year yield declined eight basis points to 1.07%

Commodities

• West Texas Intermediate crude fell 1.1% to $79.73 a barrel

• Gold futures rose 0.7% to $1,770.80 an ounce

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