Tag Archives: Yields

Stocks Start Week Flat

MONDAY – Stocks were flat Monday morning as the 10-year Treasury yield hit a new three-year high and a week of major first-quarter earnings reports kicked off.

The 10-year Treasury yield reached on Monday it highest level since late 2018, trading at 2.884% at one point. The yield was at 1.71% to begin March, but has shot higher as the Federal Reserve pivoted to a more aggressive tightening stance. That change has weighed on stocks and triggered concerns about an impending recession.

Several Dow blue-chip names report earnings this week, including IBM, Procter and Gamble, Travelers, Dow Inc, Johnson and Johnson, American Express and Verizon.

Technology bellwethers are also set to report quarterly earnings, with Netflix due on Tuesday and Tesla out on Wednesday. Snap reports Thursday. United Airlines, American Airlines and Alaska Air are also on the calendar, as are railroads CSX and Union Pacific.

Investors will be paying close attention to forward guidance, especially for comments on how companies are handling surging costs. March’s consumer price index reading released last week showed an 8.5% increase from a year ago, the fastest annual gain since December 1981.

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Stocks Rise After Nasdaq Hits Correction Territory

U.S. stocks posted solid gains Thursday morning, with Nasdaq up nearly 1% the day after dipping into correction territory.

Stocks held their ground even as government bond yields again edged higher, part of a market repricing as the Federal Reserve gets set to tighten monetary policy.

The central bank meets next week, with markets indicating just a slight chance of action on interest rates. However, traders have fully priced in the first of what is expected to be four 0.25 percentage point hikes through 2022.

The two-year Treasury, which is most closely tied to Fed rate policy, most recently yielded about 1.04%, while the benchmark 10-year note was at 1.84%.

Markets were looking ahead to more earnings reports as well as the weekly update on initial jobless claims and existing home sales.

On the economy, the Dow Jones estimate for claims in the week ended Jan. 15 is 225,000, slightly less than the 230,000 from the previous period. Home sales for December are expected to total 6.48 million, a modest 0.3% increase from November, which had posted a gain of 1.9%.

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