Wall Street up, dollar down against optimism related to rate cuts | Money

NEW YORK, July 13 – Wall Street shares closed higher and the dollar fell yesterday as investors prepared for a cut in US interest rates, while oil futures have changed little, the forecast of an overall gross surplus offsetting worries about the decline in US tropical storm output.

The yield curve for US Treasuries has slightly increased, with yields largely unaffected by stronger than expected producer price data. Market expectations for a reduction in the interest rate in July remained unchanged after two days of testimony by Federal Reserve Chairman Jerome Powell.

The benchmark of Wall Street, the S & P 500 and the Dow Jones Industrial Average rose slightly one day after reaching record highs.

Since Powell boosted expectations of a rate cut in July that fueled a recent recovery, the market "is starting to turn before moving to the next stage" during the quarterly earnings season that begins next week. said Ken Polcari, managing director of Butcher Joseph Asset Management in New York.

Polcari said that improving economic data makes investors cautious on the Fed's rate trajectory.

"Now, there is a little worry: if the data comes out strong, why are we cutting rates?", He said. "The market thinks it's going to cut rates in July, and that will be all."

The Dow Jones Industrial Average index rose 243.95 points, or 0.9%, to 27,332.03, the S & P 500 index of 13.86 points, or 0.46%, at 3,013.77 and the Nasdaq Composite Index of 48.10 points, or 0.59%, at 8,244.14.

The three stock indexes posted their second consecutive weekly gain before the start of the second quarter earnings season. Analysts predict a 0.4% decline in S & P 500 earnings per share for the quarter, according to Refinitiv's I / B / E / S data.

"Most of this year's gains were generated by multiple expansion. Revenues need to start doing their part. Otherwise, you may find that people who are considering multiple expansion claim it looks like a peak, "said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

The pan-European STOXX 600 Index gained 0.04% and MSCI's worldwide market index gained 0.30%.

Producer prices in the United States edged up in June as higher service costs were offset by lower energy costs, exceeding economists' expectations that prices would remain unchanged.

The Ministry of Labor report comes on the heels of strong consumer price data Thursday, suggesting that overall inflation could continue to rise moderately.

"An individual data set will not influence or define" the Fed's interest rate decision, said Michael Lorizio, a senior fixed income trader at Manulife Investment Management.

In Treasury bonds, the price of 10-year benchmark bonds last rose by 2.32% to reach a 2.149% yield, against 2.12% Thursday night.

In currencies, continued bets on a reduction in US rates led to a decline in the dollar for the third day in a row. The dollar index, which follows the greenback against six major competitors, lost 0.23%, while the euro rose 0.15% to 1.1269 USD.

The Japanese yen is appreciated 0.59 percent against the greenback at 107.87 for a dollar.

Oil prices rose slightly as crude oil production in the Gulf of Mexico in the United States was halved due to disturbances caused by a tropical storm. Gains were limited after the International Energy Agency predicted a large world stock of crude in the coming months.

Futures on US crude increased 1 cent to 60.21 USD per barrel, up 4.7% for the week, while Brent reached 20 cents to 66.72 USD, with a gain of weekly rate of 4%. Both benchmarks fell last week.

The price of gold has risen slightly as investors fear that stronger than expected US consumer inflation will not influence the Fed's decision to aggressively ease its monetary policy.

Spot gold added 0.8% to $ 1,414.22 an ounce. – Reuters