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Treasury Yields Stay in the Spotlight

Earnings season is proving to be more volatile than many investors expected

By Anthony Mirhaydari, InvestorPlace Market Strategist


Stocks battled back from initial losses on Wednesday to close with modest gains. The Dow Jones Industrial Average gained 0.3% to end a five-day losing streak. The Nasdaq Composite lost 0.1%, however, to take its losing streak to five days.

Most of the 11 major sector groups moved higher, with energy and telecom services adding 0.8% apiece. Three sectors closed in negative territory including financials and tech stocks.

Treasury yields and earnings remain the focus, with the 10-year yield pushing further above the 3% level to close at 3.03% — highs not seen since 2014. The 2-year yield hit 2.49%, its highest close in nearly a decade.

Turning to earnings, Boeing Co (NYSE:BA) gained 4.2% after crushing top- and bottom-line estimates. Other reporters Texas Instruments Incorporated (NASDAQ:TXN), Anthem Inc (NYSE:ANTM), and Norfolk Southern Corp. (NYSE:NSC) added between 4.7% and 8.1% on better-than-expected results.

On the downside, Twitter Inc (NYSE:TWTR) dropped 2.4% despite beating estimates as a crackdown on bots and other questionable accounts looks set to weigh on user growth metrics. And Capital One Financial Corp. (NYSE:COF) lost 4.8% after missing estimates.

After the close, Facebook, Inc. (NASDAQ:FB) soared 5.5% to trade to $170 after reporting earnings of $1.69 per share vs. $1.36 estimated on $12 billion in revenue. Daily active users increase 13% over last year, laying to rest the #deletefacebook fears.

On a technical basis, the S&P 500 once again bounced near its 200-day moving average — a level that will apparently never be violated for the rest of human history. Except, the upward surge in interest rates is gathering pace ahead of another Federal Reserve policy meeting next week that will all but confirm another rate hike in June.

Check out Serge Berger’s Trade of the Day for April 26.

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.

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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-yields-stay-spotlight/.

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