Stocks climb amid earnings, data; crude oil jumps

All three of the main U.S. equity benchmarks were higher after a mixed session on Wednesday. News that top U.S. and Chinese negotiators will speak as soon as next week on trade helped boost sentiment. The number of new claimants for unemployment benefits surged by about 3.2 million, though a bad number was expected by investors and the market took it in stride. Treasuries edged higher.

"You ask the question, are things likely to be better six months from now than they are today?" said Randy Frederick, vice president of trading and derivatives at Charles Schwab & Co. "Most people would say yes, and the market is looking ahead. Right now the market thinks the future looks better."

The tech-heavy Nasdaq briefly wiped out losses that reached as much as 24% at the depths of the pandemic-fueled sell-off. The Nasdaq 100 is positive in 2020, a feat it first accomplished in mid-April. Both posted their best monthly gains in April in at least 18 years.

In the latest corporate news:

- ViacomCBS Inc. rallied after reporting a surge in streaming subscribers.

- Raytheon Technologies jumped after results beat expectations.

- Moderna surged after saying its experimental vaccine for the new coronavirus would be in late-stage studies by early this summer.

The Stoxx Europe 600 Index gained as most national gauges and industry sectors climbed. Crude jumped to more than $26 a barrel in New York after Saudi Arabia raised prices. The pound swung between losses and gains after the Bank of England kept its policy settings unchanged and signaled it may expand monetary stimulus as soon as next month.

Risk assets rebounded swiftly in April following a dramatic sell-off in the first quarter, but stocks have struggled for direction this month as bulls and bears duel over the outlook. Optimists point to efforts to reopen economies, a slowing rate of new infections and unprecedented stimulus. Pessimists fret over the mounting economic toll, with payrolls data from the largest economy on Friday expected to be dire.

"We remain concerned about the potential for the pandemic to have lasting effects on growth," wrote Ron Temple, co-head of multi-asset and head of U.S. equity at Lazard Asset Management. "Countries and companies are likely to exit the crisis with significantly higher debt, curtailing their ability to invest and innovate."

Worries about rising tension between the U.S. and China have added an extra headache for investors lately; the planned call between the two countries may signal an effort to de-escalate the situation.

Most Asian stocks slipped earlier, including in Japan where exchanges opened for the first time this week following a holiday. The yen weakened. China's yuan advanced offshore after the country reported a surprise gain in exports, even as the virus pandemic damaged global demand.

Stocks:

- The S&P 500 Index climbed 1.4% to 2,881.29 as of 10:49 a.m. New York time.

- The Dow Jones Industrial Average gained 1.3% to 23,932.51.

- The Nasdaq Composite Index rose 1.3% to 8,936.43, the highest in two months.

- The MSCI All-Country World Index increased 0.9% to 481.52.

Currencies:

- The Bloomberg Dollar Spot Index was little changed at 1,255.60, hitting the highest in more than a week with its fifth straight advance.

- The Japanese yen weakened 0.4% to 106.56 per dollar, the first retreat in a week.

- The euro declined 0.1% to $1.0777, the weakest in more than a week.

- The British pound fell 0.4% to $1.2285, reaching the weakest in almost two weeks on its fifth consecutive decline.

Bonds:

- The yield on 10-year Treasuries sank three basis points to 0.67%.

- Germany's 10-year yield dipped four basis points to -0.55%.

- Britain's 10-year yield gained less than one basis point to 0.233%.

Commodities:

- West Texas Intermediate crude rose 7.1% to $25.69 a barrel, the highest in almost three weeks.

- Gold strengthened 0.6% to $1,697.57 an ounce.