Stocks Waver Amid Rising Treasury Yields; Oil Leads, Bitcoin Dips: Thursday's Market Movers

Zinger Key Points
  • Bond yields continue to surge higher, which is seen as the result of strong economic data that supports a elevated interest rates.
  • Most analysts see the market going through a lackluster phase before things pick up in the later half of the year.

Stocks remained muted Thursday, as rising yields on long-term Treasury bonds dampened risk appetite.

The yield on the U.S. 10-year Treasury note soared to 4.31%, the highest since October 2007. The 30-year yield rose to over 4.4%, its highest point since March 2011.

Both the S&P 500 and the Nasdaq 100 were near flat during midday trading, while energy outperformed all other sectors, driven by rising oil and natural gas prices.

Investors continue to maintain a cautious stance after the latest FOMC minutes revealed that a majority of Fed officials continued to highlight “significant upside risks to inflation, which could require further tightening of monetary policy.

Cues From Thursday's Trading:

The S&P 500 traded flat, while both the Nasdaq 100 and the Dow Jones Industrial Average softened 0.1%. Small caps continued to ease, with the Russell 2000 down 0.3% on the day.

US Index Performance On Thursday

Index Performance (+/-)Value
Nasdaq 100-0.11%14,859.75
S&P 500 Index-0.01%4,405.13
Dow Industrials-0.07%34,743.24
Russell 2000-0.25%1,866.18

Thursday’s Trading In Major US Equity ETFs: In midday trading on Thursday, the SPDR S&P 500 ETF Trust SPY was 0.1% higher to $440, the SPDR Dow Jones Industrial Average ETF DIA held steady at $348 and the Invesco QQQ Trust QQQ was 0.1% lower to $362, according to Benzinga Pro data.

The Energy Select Sector SPDR Fund XLE rose 2.1%, marking the best performance among the S&P 500’s sectors. Gains also were also seen in the Utilities Select Sector SPDR Fund XLU and the Materials Select Sector SPDR Fund XLB, up 0.6% and 0.7%, respectively.

Rate sensitive sectors, such as the Consumer Discretionary Select Sector SPDR Fund XLY, the Technology Select Sector SPDR Fund XLK, fell 0.3% and 0.2%, respectively.

Latest Economic Data:

  • Jobless Claims (for week ending Aug. 12): 239,000 vs. 250,000 (previous) and 240,000 (expected).
  • Philadelphia Fed Manufacturing Index (August): 12 vs. -13.5 (pre.) and -10 (exp.)
  • Freddie Mac’s 30-Year Average Mortgage Rate: 7.09% vs. 6.96% (pre.)

See also: Best Futures Brokers

Stocks In Focus:

  • Moderna Inc. MRNA jumped 6%, on potential higher vaccination demand against new Covid variant “Eris.”
  • Cisco Systems, Inc. CSCO rose over 4%, outperforming among Nasdaq 100’s companies, after better-than-expected results last quarter.
  • Chesapeake Energy CHK rose nearly 6% on inclusion in the S&P MidCap 400.
  • Exxon Mobil Corp. XOM rose 3% as UBS upped the price target from $135 to $139, keeping a Buy rating.
  • Notable companies reporting after the close include Bill Holdings, Inc. BILL, Applied Materials, Inc. AMAT, Farfetch Ltd. FTCH, and Ross Stores, Inc. ROST.

Commodities, Bonds, Other Global Equity Markets:

Crude oil rose 1.7%, with a barrel of WTI-grade crude trading at $80. The United States Oil Fund ETF USO was 1.7% higher to $72.56.  

Treasury yields rose, with the 10-year yield up by 6 basis points to 4.31% and the 30-year yield up by 5 basis points to 4.41%. The iShares 20+ Year Treasury Bond ETF TLT was 0.3% higher for the day. 

The dollar fell slightly, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, down 0.1%. The EUR/USD pair, as tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.1% lower to 1.0876.

European equity indexes closed in the red. The SPDR DJ Euro STOXX 50 Etf  FEZ fell 0.6%. 

Gold fell 0.2% to $1,887/oz. The SPDR Gold Trust GLD was 0.2% lower to $175. Silver rose 1.1% to $22.65, with the iShares Silver Trust SLV up 1% to $20.8. Bitcoin BTC/USD was 2.8% lower to $27,917.

Staff writer Piero Cingari updated this report midday Thursday. 

Read Next: Inflation Concerns Rekindle Rate Hike Debate: What 5 Top Economists Say After July FOMC Minutes Reveal

Photo: Shutterstock

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Posted In: EarningsEquitiesNewsFuturesPreviewsTop StoriesEconomicsFederal ReservePre-Market OutlookMarketsMoversTrading IdeasJackson Hole eventJeffrey Roach.LPL Financial
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