U.S. stocks rise ahead of earnings; oil pares increases

U.S. stocks rose as traders geared for a string of earnings reports from technology heavyweights including Facebook Inc., while keeping in mind inflation concerns and rising COVID-19 risks.

U.S. stocks rose as traders geared for a string of earnings reports from technology heavyweights including Facebook Inc., while keeping in mind inflation concerns and rising COVID-19 risks.

Energy and materials sectors led the S&P 500 higher after the benchmark index whipsawed traders at the start of the session. PayPal Holdings Inc. rose after the company said it isn’t pursuing an acquisition of Pinterest Inc., ending days of speculation over a potential US$45 billion deal. Tesla Inc. advanced after receiving an order for 100,000 cars from Hertz Global Holdings Inc. Still to come: the five largest U.S. technology companies are set to report earnings, starting with Facebook on Monday.

“So with the market demonstrating that it’s favoring earnings reports over economic reads,” said Chris Larkin, managing director of trading at E*TRADE Financial. “We could be in for a ride this week with a deluge of big tech earnings—some of the biggest market-cap companies out there.”

Yields on shorter-maturity Treasuries fell and the dollar was little changed after Federal Reserve Chair Jerome Powell flagged that inflation could stay higher for longer, fueling investor concern that sticky price increases may force policy makers to raise borrowing costs.

The Stoxx Europe 600 index edged higher. The basic-resources sector advanced as crude oil and metals rose, while banks increased on HSBC Holdings Plc’s bright outlook. Spain’s Banco de Sabadell SA jumped after rejecting an offer for its U.K. unit.