Stocks on Wall Street rose on Wednesday despite disappointing U.S. economic data while German bond yields hit their lowest levels for the year as European investors moved toward safe havens.
The dollar and Treasuries yields fell after data showed the U.S. economy contracted more than previously thought in the first quarter and durable goods orders unexpectedly fell in May, which contrasted with Tuesday's stronger-than-expected data for consumer confidence and new home sales.
U.S. stock futures were down at the pre-open but rose as trading progressed, with the S&P 500 and Dow hovering within striking distance of record levels.
"As long as investors believe the economy will keep growing, and everyone expects growth in the second quarter, the lesser evil will be to buy equities at a modestly higher valuation, since bonds and cash don't represent better values," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
Some investors remained concerned about the impact that prolonged turmoil in Iraq could have on oil prices, which are already up about 4 percent this month. Militants in Iraq attacked one of the country's largest air bases as the first U.S. teams arrived to assess Iraqi security forces and decide how to help counter the violence.
"Investors are still concerned about American foreign policy and what will be the next step in terms of any military intervention as opposed to diplomacy in the Middle East region," asset management firm B Capital's managing director Lorne Baring said.
The Dow Jones industrial average <.DJI> rose 39.6 points or 0.24 percent, to 16,857.73, the S&P 500 <.SPX> gained 4.17 points, or 0.21 percent, to 1,954.15, and the Nasdaq Composite <.IXIC> added 5.385 points, or 0.12 percent, to 4,355.741.
The dollar slid to a one-month low against a basket of major currencies after the weak U.S. gross domestic product and durable goods orders data signaled the likelihood of a continued dovish stance from the Federal Reserve.
The dollar index <.DXY>, which measures the greenback versus a basket of currencies, was down 0.16 percent at 80.199.
U.S. government bond prices jumped on the unexpectedly big downward revision in first quarter GDP. The 10-year U.S. note[XX/32] yield stood at 2.5466 percent.
Europe's FTSEurofirst 300 stock index <.FTEU3> hit a one-month low, falling nearly 1 percent, the biggest decline since mid-April, to 1,374.28 points. The MSCI world equity index <.MIWD00000PUS>, which tracks shares in 45 countries, fell 0.1 percent, touching a one-week low at 425.84.
Yields of German government bonds, perceived as safe havens, fell to May 2013 lows. The German 10-year note yielded1.266 percent versus Tuesday's 1.322.
In oil, Brentfell 0.9 percent to $113.60 a barrel, while U.S. crude advanced 0.2 percent to $106.20.
Source: Reuters
The dollar and Treasuries yields fell after data showed the U.S. economy contracted more than previously thought in the first quarter and durable goods orders unexpectedly fell in May, which contrasted with Tuesday's stronger-than-expected data for consumer confidence and new home sales.
U.S. stock futures were down at the pre-open but rose as trading progressed, with the S&P 500 and Dow hovering within striking distance of record levels.
"As long as investors believe the economy will keep growing, and everyone expects growth in the second quarter, the lesser evil will be to buy equities at a modestly higher valuation, since bonds and cash don't represent better values," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
Some investors remained concerned about the impact that prolonged turmoil in Iraq could have on oil prices, which are already up about 4 percent this month. Militants in Iraq attacked one of the country's largest air bases as the first U.S. teams arrived to assess Iraqi security forces and decide how to help counter the violence.
"Investors are still concerned about American foreign policy and what will be the next step in terms of any military intervention as opposed to diplomacy in the Middle East region," asset management firm B Capital's managing director Lorne Baring said.
The Dow Jones industrial average <.DJI> rose 39.6 points or 0.24 percent, to 16,857.73, the S&P 500 <.SPX> gained 4.17 points, or 0.21 percent, to 1,954.15, and the Nasdaq Composite <.IXIC> added 5.385 points, or 0.12 percent, to 4,355.741.
The dollar slid to a one-month low against a basket of major currencies after the weak U.S. gross domestic product and durable goods orders data signaled the likelihood of a continued dovish stance from the Federal Reserve.
The dollar index <.DXY>, which measures the greenback versus a basket of currencies, was down 0.16 percent at 80.199.
U.S. government bond prices jumped on the unexpectedly big downward revision in first quarter GDP. The 10-year U.S. note
Europe's FTSEurofirst 300 stock index <.FTEU3> hit a one-month low, falling nearly 1 percent, the biggest decline since mid-April, to 1,374.28 points. The MSCI world equity index <.MIWD00000PUS>, which tracks shares in 45 countries, fell 0.1 percent, touching a one-week low at 425.84.
Yields of German government bonds, perceived as safe havens, fell to May 2013 lows. The German 10-year note yielded
In oil, Brent
