(Bloomberg) — After lagging behind the reopening trade last week, technology companies outperformed on Monday, with stocks trading near all-time highs. Treasuries rebounded.
The S&P 500 struggled to find direction, following a torrid rally that added $6 trillion in value to the equity market so far this year. With the benchmark gauge of American shares on pace for one of its best first halves in history, demand for protection against losses in coming months has risen in the options market.
Travel shares were among the corporate highlights, with cruise operators and airlines sinking after governments from Europe to Asia imposed new limits on travel from Britain, which is seeing a sharp growth in cases of the highly transmissible coronavirus delta variant. It’s a quiet day on the economic front, with traders awaiting readings on consumer confidence, housing, manufacturing and the labor market this week.
“Investors should not be looking for stocks to move higher in a straight line, but rather prepare for the economic recovery taking shape,” John Stoltzfus, chief investment strategist at Oppenheimer, wrote to clients. “We look for progress, not perfection in the economic data this week, with the potential for any disappointments to give rise to volatility, and with results that are better than expected likely to provide positive offsets.”
Bearish bets on the SPDR S&P 500 ETF have climbed to about 5% of its shares outstanding, from less than 2% at the start of this year, according to IHS Markit data. Meanwhile, demand for protection against losses in coming months is rising in the options market.
For more market commentary, follow the MLIV blog.
Here are some events to watch in the markets this week:
OECD meets in Paris to finalize a proposal to overhaul global minimum corporate taxation WednesdayChina’s President Xi Jinping will deliver a speech as the nation marks the 100th anniversary of the founding of the Chinese Communist Party ThursdayOPEC+ ministerial meeting ThursdayECB President Christine Lagarde speaks FridayThe U.S. jobs report is forecast to show an acceleration in payrolls growth in June Friday
These are some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 11:30 a.m. New York timeThe Nasdaq 100 rose 1%The Dow Jones Industrial Average fell 0.6%The Stoxx Europe 600 fell 0.6%The MSCI World index fell 0.1%
Currencies
The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1932The British pound was little changed at $1.3885The Japanese yen rose 0.2% to 110.53 per dollar
Bonds
The yield on 10-year Treasuries declined four basis points to 1.48%Germany’s 10-year yield declined three basis points to -0.19%Britain’s 10-year yield declined five basis points to 0.73%
Commodities
West Texas Intermediate crude fell 1.2% to $73.13 a barrelGold futures rose 0.1% to $1,779.70 an ounce
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