*
Core PCE inflation hotter than expected
*
Uncertain outlook from Amazon.com weighs on Nasdaq
*
BOJ maintains easy policy; Fed, ECB seen hiking
*
Oil prices poised for monthly decline
(Recasts to reflect U.S. market open, changes dateline to NEW
YORK from LONDON)
By Stephen Culp
NEW YORK, April 28 (Reuters) - U.S. stocks oscillated on
Friday and benchmark Treasury yields dipped as market
participants digested a spate of mixed corporate earnings and
data that confirms that while inflation is cooling, it remains
well above the Federal Reserve's target.
The S&P 500 and the Dow were modestly higher but Amazon.com pulled the Nasdaq into negative territory, with each
index poised to notch modest weekly gains.
Economic data released before the bell confirmed that
inflation is falling but remains more than double the Federal
Reserve's average annual goal of 2%, and did little to move the
needle regarding market expectations of another 25 basis-point
interest rate hike when the central bank meets next week.
Meanwhile, the economic outlook is uncertain, with a weaker
than expected first-quarter GDP reading and Amazon.com Inc
warning of a potential slowdown echoing those uncertainties and
weighing on the stock.
"We’re receiving conflicting information," said Michael
Green, chief strategist at Simplify Asset Management in New
York. "The labor market is strong and we've seen decent
earnings, all of which is set against the backdrop of increasing
fear of recession."
"It's clear that inflation is coming down but what we’re
struggling with is trying to assimilate this information and
trying to figure out what the Fed is going to do with this
information."
The Dow Jones Industrial Average rose 70.64 points,
or 0.21%, to 33,896.8, the S&P 500 gained 4.27 points, or
0.10%, to 4,139.62 and the Nasdaq Composite dropped
25.39 points, or 0.21%, to 12,116.85.
European shares gained ground, rebounding from an initial
sell-off attributed to weakness in European banks.
The pan-European STOXX 600 index rose 0.32% and
MSCI's gauge of stocks across the globe gained
0.17%.
Emerging market stocks rose 0.41%. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 0.48%
higher, while Japan's Nikkei rose 1.40%.
Treasury yields fell across the board on signs of cooling
inflation.
Benchmark 10-year notes last rose 21/32 in price
to yield 3.4484%, from 3.528% late on Thursday.
The 30-year bond last rose 43/32 in price to
yield 3.6803%, from 3.756% late on Thursday.
The greenback was nominally higher against a basket of world
currencies on the heels of the inflation data, and benefitting
from a falling yen in the wake of the Bank of Japan maintaining
its low policy rate.
The dollar index rose 0.07%, with the euro up
0.07% at $1.1035.
The Japanese yen weakened 1.59% versus the greenback at
136.14 per dollar, while Sterling was last trading at
$1.2564, up 0.62% on the day.
Oil prices rose but remained on track for a monthly decline
amid signs of an economic slowdown.
U.S. crude rose 1.38% to $75.79 per barrel and Brent was last at $79.40, up 1.51% on the day.
Gold prices were essentially flat after economic data
cemented the likelihood of another rate hike from the Fed.
Spot gold added 0.3% to $1,993.63 an ounce.
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World FX rates YTD Asian stock markets Big Tech share of S&P500 market cap ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp in New York
Editing by Matthew Lewis)
