The U.S. 10-year Treasury note fell for the first time insix days, sending the yield three basis point higher to 1.82percent. German bunds stayed lower, with the 10-year yieldincreasing three basis pointsyork technical institute to 1.81 percent, as the nationsold 4.093 billion euros ($5.37 billion) of 2 percent, 10-yearsecurities at an average yield of 1.82 percent. The Portuguesetwo-year note yield tumbled 136 basis points to 19.18 percent asthe nation auctioned 1.5 billion euros of 105- and 168-daybills.
TheInstitute for Supply Managements U.S. manucturingindex is forecast to show the stest growth since June,according to economists surveyed by Bloomberg, signalingindustry will lead a U.S. expansion. The U.K.s ctory measureunexpectedly rose to an eight-month high and reports showedmanucturing in Europe,ChinaandIndiaincreased in January.
The Dollar Index, which tracks the U.S. currency againstthose of six trading partners, snapped a two-day advance, whilethe greenback depreciated for a fifth day against the yen,lling 0.2 percent. The Institute for Supply Managementsctory indexfor January is due to be published at 10 a.m. NewYork time and the median forecast of economists in a survey isfor a reading of 54.5. A reading above 50 indicates growth.
Companies added 170,000 workers in January, reflecting jobgains in services and at small businesses, according to a reportfrom ADP Employer Services based on payrolls. The increase wasless than the 182,000 forecast by economists. Government data intwo days is forecast to show a 165,000 gain in private jobs,while total payrolls increased 145,000.
Ralph Orlowski/Bloomberg
The news on the economy is better,David Sowerby, aBloomfield Hills, Michigan-based portfolio manager at LoomisSayles & Co., which oversees $150 billion, said in a telephoneinterview. The uncertainty inEuropehas diminished. Whilecorporate profits have been less robust, they are stillgrowing. Stock valuations had reflected a potential profitrecession, which is not going to happen. Thats whats movingstock prices higher.
The Standard & Poors 500 Index increased 0.4 percent to1,318.08 at 9:30 a.m.york technical institute Stocks Gain on Optimism Global Manucturing Is Recovering; Dollar Weakens inNew Yorkand the Stoxx Europe 600 Indexclimbed 1.6 percent. Ten-year Treasury yields increased threebasis points to 1.83 percent, while the Dollar Index fell 0.5percent.Portugals 10-year bond yields slid 100 basis points to15.40 percent after the government sold bills.
TheS&P 500rebounded after its longest losing streak sinceNovember and theDow Jones Industrial Averagesnapped its firstfour-day slump since August. The S&P 500 is trading for about13.7 times its companies earnings and has been stuck below itsfive-decade average multiple of 16.4 since May 2010, the longeststretch since a 13-year period beginning in 1973.
The cost of insuring against deult on European sovereigndebt fell, with the Markit iTraxx SovX Western Europe Index ofcredit-deult swaps on 15 governments declining 11 basis pointsto 328 basis points.
Financial traders monitor data on computer screens at the Frankfurt Stock Exchange in Frankfurt.
To contact the editor responsible for this story:Stuart Wallace [email protected]
Amazon.com Inc. (AMZN)tumbled after the worlds largest Internetretailer reported sales that missed estimates.
Stocks (SP)rose, halting a four-day slumpin U.S. benchmark indexes, while the dollar and Treasuriesdropped amid signs that global manucturing is strengthening.Silver, wheat and gasoline led commodities higher.
TheMSCI Emerging Markets Index (MXEF)advanced 0.6 percent,heading for its highest level since Sept. 2. TheISE National100 Index (XU100)jumped 2.7 percent in Istanbul and theMicex Index (MICEX)advanced 1.7 percent inRussia. Benchmark indexes rose at least0.5 percent in Poland andHungary.
To contact the reporter on this story:Michael Shanahan in London [email protected]
The S&P 500s 50-day moving average rose yesterday abovethe 200-day moving average for the first time since August. Thepattern, known as a golden cross, may signal the rally willcontinue, according to some technical analysts and investorswhose decisions are influenced by price charts.
Chinas purchasing managers index rose from 50.3 inDecember to 50.5 in January, the nations statistics bureau andlogistics federation said in a statement.
Earnings have topped estimates at about two-thirds of the207 companies in the S&P 500 that released results since Jan. 9,data compiled by Bloomberg show. Profit has risen 2.4 percentfor the group amid 7.8 percent growth in sales.
About 13stocks (SP)gained for each that fell in theStoxx 600.ICAP Plc jumped 6.2 percent as the worlds biggest broker oftransactions between banks said annual pretax profit will be atthe upper end of analyst estimates. Banca Monte dei Paschidi Siena SpA and Banco Popolare SC led a rally in Italian banks,advancing more than 7.8 percent.
york technical institute Stocks Gain on Optimism Global Manucturing Is Recovering; Dollar Weakens,Financial traders monitor data on computer screens at the Frankfurt Stock Exchange in Frankfurt. Photographer: Ralph Orlowski/Bloomberg
TheShanghai Composite Index (SHCOMP)dropped 1.1 percent after the21st Century Business Herald reported new loans in January maybe below 1 trillion yuan ($158.6 billion). New loans exceededthat amount every January over the past three years, accordingto data compiled by Bloomberg.
