The S&P 500 Index jumped Monday after reports of a series of big-ticket takeovers. Marathon Petroleum Corp. intends to buy rival oil refiner Andeavor for more than $20 billion to create the biggest independent U.S. fuel maker. T-Mobile US Inc. announced plans to acquire Sprint Corp. for $26.5 billion in stock, Bloomberg reported.
Apple Inc., which reports earnings Tuesday, led the charge in the S&P 500, and McDonald’s Corp. shares were on track for their best day since July after the burger chain reported solid results.
The 10-year Treasury yield held steady just below 3 percent after the U.S. Commerce Department reported a pickup in consumer spending in March and inflation hit the Federal Reserve’s 2 percent target, reinforcing the outlook for further interest-rate hikes. Company results and economic numbers, including U.S. employment figures, will continue to roll in this week, while monetary policy and benchmark yields will remain a major focus as the Fed meets for its next interest rate decision.
The Stoxx Europe 600 Index retreated from earlier gains, with consumer and health-care companies leading advancers, while energy and raw materials shares were among the big decliners. Shares in the FTSE 100 Index climbed to the highest in almost three months, with retailer J Sainsbury Plc jumping the most on record as it plans to buy Walmart Inc.’s U.K. arm, Asda. The pound dropped after Amber Rudd quit as U.K. home secretary and Housing Secretary Sajid Javid was named her replacement.
Elsewhere, oil fluctuated while Bitcoin gained and gold fell. Equities in Seoul advanced with the won after North Korea pledged denuclearization on Friday ahead of the upcoming summit between Kim Jong Un and U.S. President Donald Trump.
These are some key events to watch this week:
- The Federal Open Market Committee begins a two-day meeting on Tuesday. The rates decision in Wednesday.
- It’s Golden Week in Japan, with public holidays Monday, Thursday and Friday. China is shut Monday and Tuesday.
- The Reserve Bank of Australia’s monetary policy decision is out Tuesday.
- The European Commission presents its spring economic forecasts, which include projections for growth, inflation, debt and deficit.
- Payroll gains in the U.S. probably picked up in April, with the unemployment rate forecast to drop to 4 percent, according to surveys of economists.
- Earnings season continues, with Apple Inc. headlining. Other high profile results include Pfizer Inc., Merck & Co., HSBC Holdings Inc., Tesla Inc., and BP Plc.
And these are the main moves in markets:
Stocks
- The S&P 500 Index advanced 0.4 as of 10:15 a.m. New York time.
- The Stoxx Europe 600 Index increased less than 0.05 percent.
- The U.K.’s FTSE 100 Index increased 0.1 percent to the highest in almost three months.
- The MSCI Emerging Market Index climbed 0.9 percent to its highest in more than a week.
Currencies
- The Bloomberg Dollar Spot Index advanced 0.3 percent to the highest in more than 15 weeks.
- The euro decreased 0.4 percent to $1.2085, the weakest in more than 15 weeks.
- The British pound declined 0.2 percent to $1.3756, the weakest in more than 15 weeks.
- The Japanese yen fell 0.3 percent to 109.34 per dollar.
Bonds
- The yield on 10-year Treasuries fell one basis point to 2.95 percent, the lowest in more than a week.
- Germany’s 10-year yield was unchanged at 0.57 percent.
- Britain’s 10-year yield decreased two basis points to 1.427 percent, its fifth straight decline.
Commodities
- West Texas Intermediate crude dipped 0.1 percent to $68.02 a barrel.
- Gold fell 0.7 percent to $1,315 an ounce.
- LME copper rose 0.3 percent to $6,817.50 per metric ton.