*
Biden meets lawmakers on Tuesday on debt ceiling
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Regional manufacturing data disappoints
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Fed's Bostic warns not to expect rate cuts this year
(Updates to U.S. market open, changes dateline to NEW YORK (was
LONDON)
By Stephen Culp
NEW YORK, May 15 (Reuters) - U.S. stocks searched for
direction and benchmark Treasury yields rose as wavering
optimism over a debt ceiling deal from Washington was
overshadowed by a dour regional manufacturing report.
Futures suggested all three major stock indexes were primed
for gains, but those gains quickly lost momentum after the
opening bell, hot on the heels of a steeper-than-expected
contraction in New York State manufacturing data.
With first-quarter earnings season approaching the finish
line, market participants had little to focus on, outside of
partisan wrangling on Capitol Hill as President Joe Biden and
congressional Republicans square off over a debt limit deal.
"It continues to be a 'two steps forward one step back'
market," said Oliver Pursche, senior vice president at
Wealthspire Advisors, in New York. "Until we get a resolution
about the debt ceiling, which I don't expect before June 1st, I
think we'll see this volatility and a directionless market,
especially as earnings wind down and there's little else for
investors to hold onto."
The Dow Jones Industrial Average fell 28.92 points,
or 0.09%, to 33,271.7, the S&P 500 lost 1.21 points, or
0.03%, to 4,122.87 and the Nasdaq Composite added 11.21
points, or 0.09%, to 12,295.96.
European stocks pared initial gains and were last nominally
higher as investors eyed ongoing U.S. debt ceiling negotiations
and Turkey's impending election runoff.
The pan-European STOXX 600 index rose 0.12% and
MSCI's gauge of stocks across the globe gained
0.14%.
Emerging market stocks rose 0.39%. MSCI's broadest index of
Asia-Pacific shares outside Japan closed 0.72%
higher, while Japan's Nikkei rose 0.81%.
Longer-dated U.S. Treasury yields rose as lingering worries
over slow-cooling inflation after Atlanta Fed President Raphael
Bostic said he did not expect any interest rate cuts this year.
Benchmark 10-year notes last fell 11/32 in price
to yield 3.5019%, from 3.463% late on Friday.
The 30-year bond last fell 31/32 in price to
yield 3.832%, from 3.777% late on Friday.
The greenback inched lower against a basket of world
currencies after touching a five-week high, while Turkey's
impending election run-off sent the lira to a near record low.
The dollar index fell 0.2%, with the euro up
0.21% to $1.0871.
The Japanese yen weakened 0.31% versus the greenback at
136.17 per dollar, while Sterling was last trading at
$1.2507, up 0.40% on the day.
Oil prices rose on the prospect of tightening supplies due
to OPEC+ production cuts and U.S. buying for reserves offset
concerns over weakening demand.
U.S. crude rose 1.77% to $71.28 per barrel and Brent was last at $75.40, up 1.66% on the day.
Gold edged higher in opposition to the weakening dollar as
the debt ceiling standoff wore on.
Spot gold added 0.2% to $2,015.10 an ounce.
(Reporting by Stephen Culp; Additional reporting by Nell
Mackenzie in London; Editing by Bernadette Baum)
