Tech Shares Gain; Crude Oil Drops to One-Week Low: Markets Wrap

(Bloomberg) — Technology shares led U.S. stocks higher as investors awaited a flood of earnings reports later in the week. The euro touched a four-month high as leaders made progress toward a stimulus package.

The Nasdaq Composite rallied more than 1.5% after underperforming the broader S&P 500 last week. The Dow Jones Industrial Average was negative. Microsoft, Intel, Tesla and Twitter are among the companies slated to deliver results this week. Noble Energy advanced after Chevron agreed to buy the company for about $5 billion in shares. AstraZeneca gained after results from early vaccine studies showed promise.

Investors are also keeping an eye on Washington, where lawmakers will begin hammering out a rescue package to replace some of the expiring benefits earlier versions contained. Euro-area leaders appeared close to an agreement on stimulus, while the total size of the recovery package is in flux, an earlier proposal was for 750 billion euros ($858 billion).

Italy’s 10-year bond yield spread over Germany, a key gauge of risk in the euro region, fell to the lowest level since March. Oil declined toward $40 a barrel. European stocks advanced.

EU Holdouts Ready to Accept 390 Billion Euros in Grants for Fund

While stock markets have inched higher in recent weeks, there are still plenty of worries about the health of the global economy, especially with the virus spreading unabated in parts of the U.S. In the euro area, unemployment could hit almost 10% by the end of the year as the economy slumps, according to a Bloomberg survey.

A Jobless Recovery Is Becoming a Real Risk for Europe’s Economy

Los Angeles Mayor Eric Garcetti has warned that the city is on the brink of another stay-at-home order. Hong Kong added a record 108 infections, will require civil servants to work from home and plans to mandate wearing of masks in all shared indoor areas.

”The economic dislocation of Covid-19 triggered a tremendous response by fiscal and monetary policy makers as well as central banks,” said Gene Tannuzzo, a portfolio manager at Columbia Threadneedle. “These measures helped to stabilize markets, yet we still find ourselves in an environment of continuous low growth.”

Here are some key events coming up:

Quarterly earnings gather steam, including Blackstone Group, Microsoft, Roche, Intel, Unilever, Canadian Pacific, UBS, Tokyo Steel, Daimler, Hyundai and Mattel.The EIA crude oil inventory report is due Wednesday.U.S. weekly jobless claims come on Thursday.

These are the main moves in markets:

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