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Home / Business / Dow threatens to snap 3-day victory line when stocks stumble lower in bond yields

Dow threatens to snap 3-day victory line when stocks stumble lower in bond yields



U.S. stocks were modestly lower Tuesday as investors struggled with concerns about the strength of the US economy and the political developments in Europe that weighed on government bonds.

How are the most important benchmark portfolios going?

Dow Jones Industrial Average

DJIA, -0.46%

dropped 75 points, or 03%, at 26,059, the S&P 500 index

SPX, -0.64%

lost 1

2 points, or 0.4% to 2,911, while the Nasdaq Composite Index

COMP, -0.58%

gave up 25 points, or 0.3%, to 7,976.

On Monday, the Dow rose by 249.78 points, or 1%, to end at 26,135.79, while the S&P 500 index added 34.97 points, or 1.2%, to close at 2,923.65. The Nasdaq Composite Index advanced 106.82 points, or 1.4%, to finish at 8,002.81.

A fourth consecutive earnings for the Dow and S&P 500 would represent the longest of these indices since the period ended July 15.

Read: Stock market investors rattled by bond market & # 39; warning shot & # 39; – here's what's next

What drives the market?

US stocks struggled for height Tuesday, but investors responded positively to quarterly results from Home Depot Inc.

HD, + 4.53% ,

which beat expectations, but warned that deflation of timber, as well as the impact of possible tariffs, would affect sales for the fiscal year. Its shares increased by 4.5%.

Earnings for the home came a day after the US Department of Commerce said it has provided Chinese telecom giant Huawei Technologies Co. Ltd. another 90-day deferral where it can continue to do business with US companies, without the issue of case-by-case licenses that would otherwise be required, after the Department of Commerce added it to its "unit list" in May.

Developments in Europe put some pressure on US stocks as Prime Minister Giuseppe Conte, leader of the populist 5-star movement, stepped up and disbanded a thin pact with Deputy Prime Minister Matteo Salvini's anti-immigrant League party, vigilant concerns for the country's leadership and sends bond prices higher and yields lower.

Return on 10-year Treasury

TMUBMUSD10Y, -3.15%

was down around 4.2 basis points Tuesday to 1.556%, while the 2-year Treasury

TMUBMUSD02Y, -2.65%

gave 1.488%, down 3.7 basis points.

Meanwhile, President Donald Trump on Monday voiced fresh criticism of the Federal Reserve, requesting that the central bank consider deeper cuts to key policy rates, at around 1%. However, Trump declared the US economy in good shape, despite the trade dispute with China, which economists and many executives from US companies point to as a business planning problem, one that could throw the US into a recession. "We are doing very well. Our consumers are rich. I gave a huge tax cut and they are loaded with money, Trump said Monday.

" We have been concerned for some time that investors were too dependent on interest rate reductions in Fed and too complacent about the prospects of a trade in China, and we now see the market waking up to these risks, there is too much uncertainty to be near term bullish today, "David Spika, President of GuideStone Capital Management, wrote in a Tuesday ready.

Check out : Stocks may fall another 8% as the & # 39; Trump put & # 39; and & # 39; Fed put & # 39; expires, says Morgan Stanley Mike Wilson [19659007] Potential emphasis on technology shares is a report that as many as 20 state attorneys generally will launch a joint antitrust investigation of large technology companies, according to the Wall Street Journal, following the Justice Department's announcement of its own antitrust review by tech companies, which reportedly includes Google parent Alphabet Inc .

GOOG, -1.09%

and Facebook Inc .

FB, -1.34% ,

among others.

As we look ahead, investors will look at comments from Fed officials later in the day, including San Francisco Federal President Mary Daly, who will speak at 4 p.m. at an online question-and-answer session, and Federal Gov. Vice President of Supervision Randal Quarles, who is scheduled to speak at 6 p.m.

Which shares are in focus?

Shares of Kohl's Corp .

KSS, -5.56%

fell 5.3% after the retailer reported profits and revenues in the second quarter that beat Wall Street expectations.

Medtronic Plc

MDT, + 3.60%

share rose 9.3%, after issuing by the medical technology company beat analysts' expectations of revenue and sales in the fourth quarter, while increased the outlook for the whole year.

US Shares in Sea Ltd .

SE, -9.64%

tumbled 10.3% on Tuesday, after the online gaming company reported results in the second quarter.

TJX Cos Inc .

TJX, -0.08%

The stock slipped 0.2% after the discount trader reported sales in the second quarter that fell below expectations.

Shares of Beyond Meat Inc .

BYND, + 6.09%

went up 5.6%, following an upgrade of the stock by JPMorgan, which claimed that there is greater potential for the plant-based meat producer to expand its presence in fast-food restaurants.

How do other markets trade?

Shares in Asia are traded overnight, with China's CSI 300

000300, -0.09%

falling 0.1%, Hong Kong's Hang Seng Index

HSI, -0.23%

and lost 0.2% and Japan's Nikkei 225

NIK, + 0.55%

increasing 0.6%. In Europe, equities traded lower, with Stoxx Europe 600

SXXP, -0.68%

down 0.5%.

In commodity markets, the price of crude oil

CLU19, + 0.21%

fell 1.4% to $ 55.40 a barrel, while gold prices

GCZ19, + 0.35%

traded flat at about $ 1,512 per ounce. The American dollar

DXY, -0.22% ,

meanwhile, less than 0.1% fell relative to the major trading partners.


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