Stocks Decline as Trade in Focus; Bonds Drop: Markets Wrap

(Bloomberg) — Stocks fell as investors weighed the chances that the U.S. will scrap a tariff hike on Chinese goods scheduled for Dec. 15. Bonds dropped.

The S&P 500 Index erased early gains. Treasury 10-year yields climbed to 1.8% as data showed U.S. jobless claims unexpectedly dropped to a seven-month low, signaling resilience in the labor market ahead of Friday’s jobs report. Oil fluctuated as OPEC ministers gather in Vienna to discuss output cuts.

Investors watched for signs the world’s two largest economies will reach a truce in a dispute that’s led to the largest volley of tariffs since the 1930s. Chinese officials are in “close contact” with U.S. counterparts on negotiations, according to Ministry of Commerce spokesman Gao Feng. President Donald Trump said Wednesday that discussions with China are going very well.

“If we do just muddle along and there aren’t the tariff increases on Dec. 15, we’ll probably see something of a stable stock-market environment,” Kristina Hooper, chief global market strategist at Invesco Ltd., told Bloomberg TV. Any negative trade news “could be the spoiler for what otherwise would be a fairly solid month for stocks,” she said.

On corporate news:

• Apple Inc (NASDAQ:). climbed as its price target was raised at Citigroup Inc (NYSE:)., which forecast strong results in the holiday quarter.
• Dollar General Corp (NYSE:). rose after boosting its profit forecast.
• Acadia Pharmaceuticals Inc. jumped after new data from its antipsychotic pimavanserin came in better than anticipated in elderly patients with dementia.
• Sage Therapeutics Inc. sank after an experimental treatment for major depressive disorder failed to reach its primary target in a key study.
• At Home Group Inc. tumbled as its forecast disappointed investors.

Here are some key events coming up this week:

• Friday brings the U.S. jobs report. The Labor Department figures are set to show that 185,000 workers were added to nonfarm payrolls last month.

These are some of the main moves in markets:

Stocks

• The S&P 500 lost 0.2% to 3,107.54 as of 10:17 a.m. New York time.
• The Index fell 0.1%.
• The MSCI Asia Pacific Index increased 0.6%.

Currencies

• The Bloomberg Dollar Spot Index decreased 0.1%.
• The euro increased 0.2% to $1.1098.
• The Japanese yen strengthened 0.1% to 108.78 per dollar.

Bonds

• The yield on 10-year Treasuries climbed three basis points to 1.80%.
• Germany’s 10-year yield advanced two basis points to -0.29%.
• Britain’s 10-year yield increased three basis points to 0.773%.

Commodities

• The Bloomberg Commodity Index gained 0.4%.
• West Texas Intermediate crude climbed 0.3% to $58.59 a barrel.
• Gold advanced 0.2% to $1,483.30 an ounce.

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