5 Top Stocks to Trade Monday Morning: ROKU, IQ, STMP >>> READ MORE

The Treasury Yield Is Trembling on the Edge of 3%

Several stocks, including Caterpillar and Merck, saw analyst upgrades on Monday

By Anthony Mirhaydari, InvestorPlace Market Strategist


U.S. equities finished near the unchanged line on Monday as investors braced for the beginning of a very busy week of earnings reports. And much attention is being paid in the rise in long-term interest rates, with the 10-year Treasury yield within millimeters of crossing the 3% threshold (2.998%).

The Nasdaq Composite lost 0.3% while the Dow Jones Industrial Average lost 0.1%, notching their third and fourth straight losses respectively. Volume was extremely light, with just 730 million shares trading hands on the NYSE vs. the 50-day average of 897 million.

Breadth was mixed, with six industry groups rising and five declining. Energy stocks gained 0.6% amid a 0.5% rise in crude oil to $68.76 a barrel. Technology was the weakest performer, losing 0.4%.

Dow components Caterpillar Inc. (NYSE:CAT), Merck & Co., Inc. (NYSE:MRK), Exxon Mobil Corporation (NYSE:XOM), and Verizon Communications Inc. (NYSE:VZ) all gained after receiving analyst upgrades. Kimberly Clark Corp (NYSE:KMB) fell 1.5% after commodity inflation dinged profitability. And Hasbro, Inc. (NASDAQ:HAS) gained 4.6% after reporting worse-than-expected profits and sales and falling as much as 4.6% in mid-day trading.

Trader positioning suggests more trouble ahead, with near-record speculative positioning short Treasury bonds, aggressive long volatility holdings and a rally in the dollar squeezing shorts in foreign exchange markets.

Check out Serge Berger’s Trade of the Day for April 24.

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.

Tell us what you think about this article! Drop us an email at [email protected], chat with us on Twitter at @InvestorPlace or comment on the post on Facebook. Read more about our comments policy here.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.

Article printed from InvestorPlace Media, https://investorplace.com/2018/04/treasury-yield-trembling-edge/.

©2019 InvestorPlace Media, LLC