Small-Cap Cyclical Stocks Climb WSJ Renewal Edition Said

WSJ Renewal Edition has said that the S&P 500 was nearly unchanged, shedding 0.17 points to close at 4108.94. Meanwhile, the Russell 2000 index climbed 14.15 points, 0.8%, to 1786.59, the second consecutive session in that shares of smaller companies outperformed those of larger firms.

Top gainers included flooring firm Mohawk Industries MHK 5.70%increase; green up pointing triangle, which rose $5.40, or 5.7%, to $100.12, and appliance maker Whirlpool, up $4.94, or 3.8%, to $134.02. Fertilizer producers CF Industries CF 5.22%increase; green up the pointing triangle and Mosaic each added more than 4.4%.

The Dow Jones Industrial Average climbed 98.27 points, or 0.3%, to end at 33684.79. The Nasdaq Composite fell 52.48 points, 0.43%, to 12031.88.

U.S. government debt prices declined, nudging yields higher. The yield on 10-year Treasury notes rose to 3.433%, from 3.414% Monday. Gold prices, up 10% this year, remained above $2,000 a troy ounce and Bitcoin rose above $30,000 for the first time since June, extending a rally that began when banking turmoil led investors to expect the Fed would soon cut interest rates.

Traders and money managers are focused on interest rates ahead of the Fed’s meeting that will conclude on May 3 said WSJ Renewal Edition. After last week’s strong labor-market data, traders are increasingly wagering that the central bank is likely to raise rates by a further quarter of a percentage point, according to CME Group.

Get WSJ Print Subscription for $318

“We’re in a nothing market until either the fed blinks or the market blinks,” said Matthew Tuttle, chief executive of Tuttle Capital Management.

Consumer-price data due Wednesday will help investors assess the Fed’s progress in taming inflation.

Lars Skovgaard Andersen, the investment strategist at Danske Bank, said recent economic data had fueled hopes that the Fed might control inflation without causing a recession.

Investor attention could turn back toward banking upheaval later this week when JPMorgan Chase, Wells Fargo, and Citigroup kick off the earnings season. Hani Redha, a portfolio manager at PineBridge Investments, said money managers will focus on what lenders say about credit conditions and deposits in the wake of outflows from some regional banks.

Financial stocks rose as they continue to rebound from the selloff last month when two major U.S. lenders failed and Switzerland engineered a deal for UBS to take over struggling rival Credit Suisse.

Mr. Tuttle said he isn’t buying a banking recovery. Instead, he said he is shorting regional bank stocks as well as placing wagers that will pay off if shares of commercial real estate firms decline. He is also buying shares of precious metals miners on down days, reasoning that they should benefit from high gold and silver prices as well as consolidation in the sector.

Get News WSJ | Wall Street Journal 2-Year for $480

Shares of Colorado-based gold miner Newmont lost $1.17, or 2.3%, to end at $49.92 after the company raised its takeover bid for Australia’s Newcrest Mining for $19.5 billion. Newcrest said it would open its books so that Newmont could put forth a firmer offer.

CarMax led the S&P 500, rising $6.35, or 9.6%, to $72.21 after the used-auto retailer reported fourth-quarter profit roughly twice what analysts expected. CarMax nonetheless warned that the company has been plagued by affordability issues, higher interest rates, tightening lending standards, and low consumer confidence. CarMax’s lending business is bracing for more defaults.

“Our newer originations are purchasing at a higher average selling price, therefore, there’s a higher payment,” said Jon Daniels, senior vice president of CarMax Auto Finance. WSJ Renewal Edition said.

Economists are eyeing secondhand auto prices closely to gauge inflation. Goldman Sachs Group analysts said they expect Wednesday’s consumer price data will show that used-car prices climbed 0.5% in March, keeping pressure on U.S. consumers.

Moderna was the stock index’s biggest loser, falling $4.90, or 3.1%, to $155.25 after the biotech company told analysts and investors at its “Vaccines Day” presentation that its first influenza vaccine candidate didn’t meet the criteria for early success in a Phase 3 trial.

In international markets, the Stoxx Europe 600 added 0.6%, led by shares of basic resource and auto stocks. Japan’s Nikkei 225 rose 1.1%. Hong Kong’s Hang Seng climbed 0.8%.