Stocks Edge Higher as Trade in Focus; Bonds Drop: Markets Wrap

(Bloomberg) -- U.S. stocks edged higher as investors weighed the chances that the Trump administration will scrap a tariff hike on Chinese goods scheduled for Dec. 15. Treasuries and the dollar declined.

The S&P 500 Index rebounded early losses after President Donald Trump’s remarks that negotiations with China were “moving along well.” Treasury yields climbed after data showed U.S. jobless claims slumped to a seven-month low, signaling resilience in the labor market ahead of Friday’s jobs report. Oil got whipsawed as OPEC ministers gathered to discuss output cuts.

Investors watched for signs the two largest economies will reach a truce in a dispute that’s led to the biggest volley of tariffs since the 1930s. Chinese officials are in “close contact” with their American counterparts on negotiations, said Ministry of Commerce spokesman Gao Feng. U.S. trade with China extended its slide in October as goods imports from the nation fell to a three-year low, Commerce Department data showed Thursday

“It’s more of the same,” said Chris Gaffney, president of world markets at TIAA. “We see a continuation of fairly choppy markets, but markets that are holding steady waiting for a resolution to the U.S.-China trade deal.”

Traders also awaited Friday’s U.S. jobs report, which may signal that both the labor market and consumers remain buoyant enough to sustain the expansion. That would validate Federal Reserve Chairman Jerome Powell’s view that rates can stay on hold following three cuts. But it could also reduce the urgency for a deal with China, given that escalating levies have so far failed to significantly dent employment.

Elsewhere, oil swung between gains and losses as OPEC reached an agreement that adjusts its official production targets, but removes few barrels from a market that’s forecast to return to surplus early next year.

On corporate news:

• Nike Inc (NYSE:NKE). rallied after Goldman Sachs Group Inc (NYSE:GS). recommended buying the shares.
• Apple Inc (NASDAQ:AAPL). rose as its price target was raised at Citigroup Inc (NYSE:C).
• Acadia Pharmaceuticals Inc. soared on promising data from its dementia drug trial.
• Energy Fuels Inc. and Ur-Energy Inc. jumped as a White House report recommended ways to revive the uranium industry.
• Biogen Inc (NASDAQ:BIIB). climbed after initially dropping on plans to resume studies of its once-abandoned drug for Alzheimer’s disease.
• Sage Therapeutics Inc. sank as a key depression study failed to show benefit.
• At Home Group Inc. tumbled as its forecast disappointed investors.

Here are some key events coming up this week:

• U.S. Labor Department figures are set to show Friday that 184,000 workers were added to nonfarm payrolls last month -- one of the highest estimates this year ahead of a jobs report.

These are some of the main moves in markets:

Stocks

• The S&P 500 rose 0.1% to 3,114.64 at 2:13 p.m. New York time.
• The Stoxx Europe 600 Index decreased 0.1%.
• The MSCI Asia Pacific Index advanced 0.7%.

Currencies

• The Bloomberg Dollar Spot Index declined 0.2%.
• The euro climbed 0.2% to $1.1101.
• The Japanese yen strengthened 0.1% to 108.70 per dollar.

Bonds

• The yield on 10-year Treasuries climbed two basis points to 1.79%.
• Germany’s 10-year yield rose two basis points to -0.29%.
• Britain’s 10-year yield increased three basis points to 0.773%.

Commodities

• The Bloomberg Commodity Index gained 0.5%.
• West Texas Intermediate crude advanced 0.1% to $58.49 a barrel.
• Gold climbed 0.2% to $1,483.20 an ounce.