June 5, 2018 / 12:41 AM / 2 months ago

U.S. stocks edge up as tech extends gains; bond yields fall

NEW YORK (Reuters) - U.S. stocks mostly edged higher on Tuesday as technology shares extended recent gains while U.S. Treasury yields fell on safe-haven buying after Italy’s new prime minister outlined new economic policies that could add to the nation’s debt.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2018. REUTERS/Brendan McDermid

The so-called FAANG stocks — Facebook (FB.O), Amazon (AMZN.O), Apple (AAPL.O), Netflix (NFLX.O) and Alphabet (GOOGL.O) - rose. The S&P technology index .SPLRCT gained 0.4 percent, while the Nasdaq hit a record intraday high.

Wall Street was on track for a third straight day of gains.

“We’ve had a few strong days in the aftermath of the jobs report where the market focused on economic fundamentals more than the negative forces such as tariffs and trade,” said Liz Ann Sonders, the New York- based chief investment strategist at Charles Schwab Corp.

The Dow Jones Industrial Average .DJI fell 12.51 points, or 0.05 percent, to 24,801.18, the S&P 500 .SPX gained 1.63 points, or 0.06 percent, to 2,748.5 and the Nasdaq Composite .IXIC added 25.81 points, or 0.34 percent, to 7,632.27.

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.15 percent, while the pan-European FTSEurofirst 300 index .FTEU3 lost 0.32 percent.

Earlier, equity indexes dipped after White House economic adviser Larry Kudlow said President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries.

Mexico said it will impose tariffs of 15 percent to 25 percent on U.S. steel products and on some agricultural goods from pork to potatoes, in retaliation against Trump’s own metals tariffs.

The latest development in a growing trade conflict between the United States and its neighbours prompted selling. The Mexican peso MXN= and Canadian dollar CAD= saw their biggest losses against the U.S. dollar.

The Mexican peso lost 1.52 percent versus the U.S. dollar at 20.38. The Canadian dollar fell 0.39 percent versus the greenback at 1.30 per dollar.

The dollar index .DXY, tracking it against a basket of major currencies, fell 0.1 percent, reversing gains to nearly a six-moth high with the euro EUR= up 0.09 percent to $1.1708.

ITALY

U.S. Treasury yields fell as traders piled back into lower-risk debt after the comments by Italy’s new prime minister.

Benchmark 10-year notes US10YT=RR last rose 7/32 in price to yield 2.9131 percent, from 2.937 percent late on Monday.

There was some selling of Italian government bonds [GVD/EUR] after their rebound of the last few days, as traders digested the first comments from new Prime Minister Giuseppe Conte. Conte confirmed much of the coalition’s budget-busting agenda.

The 10-year Italian yield IT10YT=RR jumped 18 basis points to 2.736 percent after hitting a one-week low of 2.509 percent on Monday.

Copper hit a six-week high as concerns about the potential supply impact of wage negotiations at the world’s biggest copper mine helped push prices back above $7,000 a tonne.

Copper CMCU3 rose 2.04 percent to $7,117.00 a tonne.

Oil prices ended higher. U.S. crude CLcv1 rose 77 cents to settle at $65.52, while Brent LCOcv1 gained 9 cents to settle at $75.38.

For Reuters Live Markets blog on European and UK stock markets open a news window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the search bar

Additional reporting by Sinead Carew in New York; Medha Singh in Bengaluru, Marc Jones in London, Danilo Masoni in Milan and Helen Reid in London; Editing by Bernadette Baum and David Gregorio

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