Daily Trends Now
Daily Trends Now

US Stocks Fall For Second Consecutive Day

US Stocks Fall For Second Consecutive Day

The major U.S. stock indexes settled lower on Monday after the 10-year U.S. Treasury Note yield spiked higher, raising concerns higher interest rates would put a lid on the bull market.

Shares of healthcare-related companies tumbled after Amazon.com, Berkshire Hathaway and JPMorgan said they plan to form a venture aimed at lowering healthcare costs for their USA employees.

At 12:36 p.m. ET, the Dow Jones Industrial Average was up 155.81 points, or 0.6 percent, at 26,232.7, the S&P 500 was up 6.83 points, or 0.24 percent, at 2,829.26 and the Nasdaq Composite was up 23.81 points, or 0.32 percent, at 7,426.29.

Beside a host of earnings reports, this week includes US President Donald Trump's State of the Union address, the Federal Reserve's monetary policy meeting and the US jobs report.

USA markets have suffered a second day of steep losses, as investors dumped health care companies and Apple.

Pointing to the chart below, Higgins says "it is quite common for interest rates, government bond yields and equity prices to rise at the same time", adding the caveat that it usually requires investors to have a "growing appetite for risk and a positive view of corporate earnings". The Nasdaq composite fell 0.5 percent.

But, the blue-chip index clawed back as much as 200 points earlier on Wednesday.

The CBOE Volatility Index, the most widely followed gauge for investors' "fears", rose to as much as 15.42, its highest level since August.

"The upcoming results should provide further evidence of a strong earnings season under way", Peter Cardillo, chief market economist at First Standard Financial in NY, wrote in a client note. Caterpillar's 2.3 per cent drop weighed the most on the index. Japan's Nikkei ended down 0.8% as the yen strengthened against the dollar.

According to Bespoke Investment Group the S&P 500 could end its record streak without consecutive declines of 0.5 per cent.

In small-caps, the Russell 2000 Index closed at 1,584.83 for a loss of -13.28 points or -0.83%. Pfizer Inc was down 3.1 percent despite its better-than-expected earnings and upbeat 2018 guidance.

Harley-Davidson dropped 8.1 percent after the motorcycle maker forecast a drop in shipments this year.

Declining issues outnumbered advancers on the NYSE by 2,011 to 731.

Apple was down another 1.1 percent in premarket trading on Tuesday, still feeling the effects of news that the company will halve production of its $999 iPhone X smartphone.

It's the steady hammering in companies with the highest dividends, which before today had done little to slow the advance in the S&P 500 and Dow Jones Industrial Average.


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