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Stocks Timid today, as Bond yields rise

Stock market is timid today, while bond yield rises significantly! 

Stock futures fell, pointing to renewed losses on Wall Street as investor enthusiasm about a potential pause in interest-rate increases faded.

Tweet on stocks market and overall sentiment 

Factset chart on stock market today

Stronger-than-expected retail sales were weighed against mixed news in corporate earnings reports, here is the latest from the market

  • Futures for the S&P 500 fell 1%. The benchmark gauge lost 0.8% Wednesday, giving up some of the banner gains stocks posted last week.
  • Technology-focused Nasdaq-100 futures lost 1.1%. Contracts tied to the Dow Jones Industrial Average fell 0.9%.
  • Overseas stock markets were lower. The Stoxx Europe 600 fell 1%, led lower by shares of utilities and basic-resource companies. China’s Shanghai Composite fell 0.2% and Japan’s Nikkei 225 lost 0.4%.
  • On the economic front, 222,000 people filed for initial jobless claims last week. That’s down by 4,000 from the week before and points to continuing strength in the labor market.
  • Bond yields rose. The yield on 10-year Treasury notes climbed to 3.767% from 3.693% Wednesday. Two-year yields rose to 4.425% from 4.363%.
  • Oil prices fell. Benchmark Brent-crude futures slipped 1.3% to $91.65 a barrel. Subdued demand in China is weighing on prices, said Tamas Varga of PVM Oil, a brokerage.
  • The WSJ Dollar Index rose 0.8%. The gains unwind some of the sharp depreciation in the dollar that followed last week’s inflation data.

Fed officials have pushed back at the suggestion the central bank could soon stop pushing up borrowing costs. That said, and all  combined with strong retail-sales data, have tamed some of the enthusiasm that gripped stock, bond and currency markets last week.


Source; Factset/DowJones