US stocks open mixed as focus turns to economy; oil slump

The US stocks were mixed during opening on Thursday in the wake of the Federal Reserve’s decision as traders awaited Friday’s jobs report. Treasuries declined.

The S&P 500 index traded near its all-time high as banks gained, while energy shares slumped with oil, 3M Co, sank to the lowest since January after making its biggest acquisition ever. Tesla Inc. surged on plans to raise about $2 billion through debt and stock offerings. The dollar rose against most of its peers.

Traders pared bets on the Fed’s next move being a cut after chairman Jerome Powell said the central bank has no bias to either tighten or ease policy. A report on Thursday showed that productivity gains in the US accelerated to the fastest pace since 2014, adding fuel to the Trump administration’s argument that its tax cuts are boosting growth without stoking inflation. The next big clue on the health of the world’s biggest economy will be Friday’s jobs report.

Elsewhere, oil slumped as a massive surge in the US crude stockpiles allayed worries about supply disruptions around the world. The pound fluctuated as the Bank of England held rates steady and hinted at future hikes. Equity benchmarks in South Korea and Hong Kong hit their highs of the session after CNBC reported that the US and China could announce a trade deal as soon as next Friday, citing sources it didn’t name.

Here are some notable events this week:

• Companies reporting earnings include: HSBC and Macquarie.
• Friday brings the US jobs report: non-farm payrolls are projected to rise by about 190,000 in April. Economists expect an unemployment rate of 3.8%, with average hourly earnings growth picking up to 3.3%.

These are the main moves in markets:

Stocks

• The S&P 500 Index increased 0.1% to 2,926.39 as of 9:51 am New York time.
• The Stoxx Europe 600 index sank 0.4%.
• The MSCI Asia Pacific index decreased less than 0.05% to 162.60

Currencies

• The Bloomberg Dollar Spot index rose 0.2%.
• The euro decreased 0.1% to $1.118.
• The British pound declined 0.1% to $1.3031.
• The Japanese yen fell 0.1% to 111.54 per dollar.

Bonds

• The yield on 10-year Treasuries rose two basis points to 2.52%.
• Germany’s 10-year yield decreased less than one basis point to 0.01%.
• Britain’s 10-year yield increased 2 basis points to 1.167%.

Commodities

• The Bloomberg Commodity Index dipped 0.7%.
• West Texas Intermediate crude declined 2.4% to $62.05 a barrel.
• Gold decreased 1.1% to $1,269.90 an ounce.