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U.S. stocks mixed amid corporate earnings and tariff talks

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EU and U.S. nearing trade agreement, boosting market

optimism

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Treasury yields rise as trade prospects improve

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MSCI world stocks index up for seventh session

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ECB pauses rate cutting cycle

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(Updates to morning trade)

By Stephen Culp

NEW YORK, July 24 (Reuters) - U.S. stock indexes

struggled to follow their world counterparts higher on Thursday,

and crude prices rebounded as investors digested a mixed batch

of corporate earnings along with signs of progress in tariff

negotiations between the U.S. and its trading partners.

The S&P 500 and the Nasdaq were modestly higher in morning

trading, while the blue-chip Dow was in negative territory.

Benchmark Treasury yields built on Wednesday's gains and gold

continued to back down from a five-week high.

"We're in an earnings-driven period right now," said Peter

Tuz, president of Chase Investment Counsel in Charlottesville,

Virginia. "Earnings and revenues have been good and guidance has

been fairly optimistic for the most part. I think (investors)

were very worried about the impact of tariffs going forward."

Second-quarter reporting season has hit full stride, with

nearly one-third of the companies in the S&P 500 having posted

results. Of those, 80% have reported better-than-expected

earnings, according to LSEG data.

Analysts currently estimate year-on-year, second-quarter S&P

500 earnings growth of 7.7%, a marked improvement over the 5.8%

growth estimate as it stood on July 1, per LSEG.

The European Union said that a negotiated trade agreement with

the United States was within reach, with a view toward reaching

a deal before President Trump's 30% tariffs scheduled to take

effect on August 1. This follows on the heels similar agreement

with Japan.

"With each trade agreement, a little bit of the uncertainty

regarding tariffs is removed." Tuz added. "And that's given

optimism to the market."

U.S. President Donald Trump, a relentless critic of Federal

Reserve Chair Jerome Powell, is due to pay a visit to the

central bank on Thursday.

This comes amid rising tensions between the administration

and the Fed, which is expected to convene for its two-day

monetary policy meeting next week, likely culminating in a

decision to let key interest rates stand.

The Dow Jones Industrial Average fell 159.05 points, or

0.35%, to 44,851.24, the S&P 500 rose 13.32 points, or

0.21%, to 6,372.23 and the Nasdaq Composite rose 29.79

points, or 0.14%, to 21,049.81.

European shares advanced and world stocks touched record

highs amid reports that the European Union and Washington were

close to clinching a tariff agreement, close on the heels of a

similar deal with Japan.

The Governing Council of the European Central Bank (ECB) voted

to leave interest rates unchanged, stating that inflation has

reached its medium-term 2% target, and due to uncertainties over

trade disputes.

MSCI's gauge of stocks across the globe

rose 3.03 points, or 0.32%, to 942.37.

The pan-European STOXX 600 index rose 0.23%, while

Europe's broad FTSEurofirst 300 index rose 4.39 points,

or 0.20%.

Emerging market stocks rose 2.26 points, or 0.18%,

to 1,267.42. MSCI's broadest index of Asia-Pacific shares

outside Japan closed higher by 0.24%, to

667.42, while Japan's Nikkei rose 655.02 points, or

1.59%, to 41,826.34.

U.S. Treasury yields rose as brightening prospects for trade

agreements reduced investor demand for safe-haven assets.

The yield on benchmark U.S. 10-year notes rose 2

basis points to 4.408%, from 4.388% late on Wednesday.

The 30-year bond yield rose 0.2 basis points to

4.9512% from 4.949% late on Wednesday.

The 2-year note yield, which typically moves in step

with interest rate expectations for the Federal Reserve, rose

3.2 basis points to 3.916%, from 3.884% late on Wednesday.

The dollar edged higher against the euro but was mixed against

the yen amid the flurry of trade negotiations.

The dollar index, which measures the greenback against a

basket of currencies including the yen and the euro, rose 0.04%

to 97.24, with the euro up 0.06% at $1.1778.

Against the Japanese yen, the dollar strengthened 0.05%

to 146.57.

In cryptocurrencies, bitcoin gained 0.61% to $118,718.26.

Ethereum rose 3.44% to $3,693.57.

Oil prices rebounded, buoyed by economic optimism and a

sharper-than-expected drop in U.S. inventories.

U.S. crude rose 1.46% to $66.20 a barrel and Brent

rose to $69.37 per barrel, up 1.26% on the day.

Gold prices extended their losses as trade deal optimism

continued to dampen demand for the safe-haven metal.

Spot gold fell 0.33% to $3,375.89 an ounce. U.S. gold

futures fell 0.8% to $3,367.00 an ounce.