etvfutures.com
etvfutures.com May 22, 2018


USA stocks close lower amid rising Treasury yield

16 May 2018, 09:00 | Cesar Cruz

Daily June E-mini Dow Jones Industrial Average

E-mini Dow Jones Industrial Average

USA equity markets closed solidly lower on Tuesday with the Dow industrials halting their eight-day advance.

After around three weeks of consolidating around the 3% mark, the 10 year Treasury yield has surged higher overnight - it is now up 8 bps at 3.08%, its highest level since 2011. That paves the way for higher borrowing costs on mortgages and other loans. Homebuilders fell sharply as a result.

The yield on the 10-year Treasury rose to 2.99 percent. The Dow is on track for a gain of 2.2 percent, while the S&P 500 is closing in on a gain of 2.4 percent.

The Dow lost 193 points, or 0.8 percent, to 24,706.

THE QUOTE: "There's a number of data releases that will grab traders' attention today and could determine whether we see an early rebound in stock markets".

UNHEALTHY TURN: Health care sector companies took some of the worst losses.

Banks bucked the downward trend Tuesday and rose along with bond yields.

Malaysian politician Anwar Ibrahim released after royal pardon
Anwar, 70, was due to be released from the Sungai Buloh prison on June 8, with time off for good behaviour. He has been in hospital for a few months recovering from a shoulder operation.


The Dow's eight-session winning streak came to an abrupt end as Treasury yields spiked, returning to multi-year highs.

The proximate trigger for the rise in yields was the release of U.S. retail sales data, which contained some upward revisions to prior months, and an Empire manufacturing survey that showed the highest prices paid component since 2011.

The yield curve steepened from near its flattest levels since 2007, with the spread between the 2 year and 10 year bond yields widening 5bps to 50bps. France's CAC 40 inched up 0.2 percent. The Nasdaq climbed 8 points, or 0.1 percent, to 7,411.

Stocks are opening moderately lower across the board on Wall Street, led by declines in technology and consumer-focused companies.

The yield on 10-year U.S. Treasury notes jumped to its highest level since July 2011, suggesting an uptick in inflation and sending the dollar index.DXY to its highest close in 2018, raising expectations for further interest rate hikes from the Federal Reserve. That yield is used to set interest rates on mortgages and other kinds of loans.

Among the S&P industry groups, the rate-sensitive real estate space ended at the bottom of the standings with a 1.7% loss, including a 3.8% rout in the iShares U.S. Home Construction ETF.



Other News

Trending Now

NBA Eastern Conference Finals: Cavaliers vs. Celtics
But James was practically absent in their Game One tussle the other day. "It's what makes us the best team that we can be". Cavs fans will be hoping that it was just a bad night for James and he will be back to his best in Game 2.

Mo Salah is not on same level as Messi, Ronaldo - Kwadwo Asamoah
The numbers that he does season in, season out are absolutely unbelievable, but come May 26 we'll be looking to stop him and the rest of Real Madrid .

Zarif says Russian Federation confirmed readiness to honor Iran deal despite United States pullout
The statement said "the Iranian regime's reckless actions pose a severe threat to regional peace and security". The accord had provided Tehran with relief from sanctions in return for curbs on its nuclear programme.

Anne Frank's 'dirty jokes' found in hidden diary pages
Announcing their discovery on Tuesday, the Anne Frank Foundation believes the text helped the teenager express her sexuality. The young Jew, then aged 13, and her family had only been in hiding from the Nazis in Amsterdam for two months.

Teacher 'Suspended For Relationship With Teen' Shot Dead Outside Mum's House
Hayden said the school reported the incident to authorities under Pennsylvania law and placed DelTondo on paid suspension. According to reports , an anonymous October email tipped off school officials to the 2016 incident.

Cardi B Apologizes For 'Girls' And States She Had No 'Bad Intentions'
Cardi isn't the first artist to apologize for how " Girls " was received. "I [thought] the song was a good song and i remember my experience".

Google's Pixel Buds finally let you skip tracks with a double tap
There was no way to skip tracks without summoning the Google Assistant, for instance. Lastly, Pixel Buds now work better when paired to multiple devices.

World Health Organization calls for trans fats to be eliminated within five years
In the USA , the first trans fatty food to hit the market was Crisco shortening, which went on sale in 1911. Eliminating these fats is the "key to protecting health and saving lives", it said, in a statement.

California Energy Commission Adopts Standards Requiring Solar Systems for New Homes
Persuaded by these claims, the California construction industry is actually backing the new mandate. The price of solar has dropped dramatically in recent years.

Professional Golfer's Wife Arrested For Assaulting Him & His Mother
And to complete the trifecta of abominable behavior, Krista made a scene when authorities tried to get her into the police auto . He chalked up the incident to an argument involving his wife and mother, and vowed that his wife would be exonerated.