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U.S. stock futures were near the flatline on Tuesday night, after the major averages fell for a third straight session as a global bond rout and higher oil prices weighed on investor sentiment
Dow Jones Industrial Average futures rose by 2 points. S&P 500 futures were flat, while Nasdaq 100 futures dipped 0.2%
Wall Street is coming off a losing session. The Dow shed 116 points, or 0.2%, while the S&P 500 slid 0.7%. The Nasdaq Composite, which dropped 1.3%, the biggest laggard of the three
Tech stocks, especially, dropped as bond yields in the U.S. and elsewhere scored fresh milestones. The 30-year Treasury yield notched a new 19-year high on Tuesday, while Japan’s 10-year bond yield reached its highest level in three decades. German 30-year bund yields hit their highest point since 2011, while rates on France’s 30-year bond reached its highest going back to 2008
Despite long-term bond yields reaching multi-decade highs, however, the stock market reaction was remarkably muted. Investors bet that continued economic growth, in tandem with historically strong earnings for companies, will continue to support the stock market in the face of higher yields
“I think, ultimately, the economy is strong enough,” Adam Parker, founder and CEO at Trivariate Research, told CNBC’s “Closing Bell” on Tuesday. “I think the earnings and cash flows from these big companies are strong enough that they’ll power through any kind of scare that happens around this.”
The latest Federal Open Market Committee meeting minutes are set to release Wednesday afternoon. Investors will likely take a keen eye to the minutes, given the sharp divisions within the central bank. At the July meeting, there were three dissenters voting to hike rates, a division that investors will seek greater detail on
A week heavy on retail earnings continues as well, with Target, TJX and Lowe’s reporting Wednesday before the open. Analog Devices also reports
2 Min Ago
U.S. government debt yields are surging at a bad time. Here’s why
Treasury yields are continuing to climb, and at a particularly bad time as higher rates worsen the impact of the nearly $40 trillion government debt load
Longer-dated debt has been hit particularly hard by the recent leg up, pushing the 30-year bond yield close to its highest level since the early part of the 21st century. Other maturities also have risen, owing to a number of factors conspiring to raise financing costs
Fixed income strategists ascribe the run that began in June to a number of variables: intensified concerns over a budget deficit that appears set to eclipse its 2025 level; inflation in an ominous holding pattern above the Federal Reserve’s 2% target despite moderating data over the past two months; and a rash of corporate debt issuance competing with Treasurys for investors’ favor
Broadly, the move can also be attributed to a rising term premium, or the extra yield investors demand to hold U.S. debt
Read the full story here
1 Hour Ago
Stocks making the biggest moves after hours
Check out the companies making headlines after hours
Toll Brothers — Shares of the luxury homebuilder dipped 0.3%. Toll Brothers said it sees fourth quarter deliveries ranging from 3,450 to 3,550 versus the StreetAccount consensus estimate of 3,508. The company reported third quarter earnings of $2.97 per share on revenues of $2.65 billion. Analysts polled by LSEG had expected per-share earnings of $2.93 on revenues of $2.61 billion
Keysight Technologies — The electronic test and measurement company rose 2% after posting third quarter results that exceeded expectations on the top and bottom lines. Keysight posted earnings of $3.07 per share, excluding items, more than the $2.48 per share expected by analysts polled by FactSet. Revenue of $1.85 billion beat the $1.75 billion consensus estimate
Read the full list here
— Sarah Min
1 Hour Ago
Stock futures open little changed
Stock futures opened little changed Tuesday night
Dow Jones Industrial Average futures rose by 12 points, or 0.02%. S&P 500 futures and Nasdaq 100 futures dipped 0.02% and 0.09%, respectively
— Sarah Min
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