Wall Street hit by rising bond yields, sinking health stocks

Ashley Carr
February 2, 2018

At 12:36 p.m. ET, the Dow Jones Industrial Average was up 155.81 points, or 0.6 percent, at 26,232.7, the S&P 500 was up 6.83 points, or 0.24 percent, at 2,829.26 and the Nasdaq Composite was up 23.81 points, or 0.32 percent, at 7,426.29.

The S&P 500 index showed 16 new 52-week highs and two new lows, while the Nasdaq recorded 38 new highs and six new lows. Leading indices in Europe and Asia also closed deep in the red.

S&P 500 measures the performance of 500 widely held common stocks of large-cap US companies.

Energy companies fell as crude oil prices headed lower.

Yesterday's falls came shortly after senior executives at Goldman Sachs and Bank...

However, the Fed said it will "carefully monitor" inflation, which it expects to "move up this year".

Boeing helped the industrials sector increase 1.09 percent, the most among the 11 major S&P sectors.

An ADP report showing the US private sector added much more jobs in January than expected, 234,000 vs. 185,000, also boost sentiment ahead of the more comprehensive non-farm payrolls data on Friday.

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Investors were phased by the two day decline on Wall Street, as Gennadiy Goldberg, interest rates strategist at TD Securities in NY said this pushed people in to the arms of the safety of U.S. government bonds.

The Dow climbed more than 100 points on Wednesday, signaling that the sell-off earlier this week may have been a blip instead of the start of a more serious downturn.

In other news, the CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, rose 24.3 percent, or 2.7, to 13.77. The Nasdaq climbed 48 points, or 0.7 percent, to 7,451. If yields keep rising at this pace, the broader equity market could be in trouble, said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. The S&P 500 still is up 6.7 per cent since the end of 2017.

The Fed started its two-day monetary policy meeting on Tuesday. The Japanese yen strengthened 0.17 per cent versus the greenback at 108.79 per dollar.

U.S. stock index futures drifted higher late on Tuesday as Trump gave his State of the Union address.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.74 percent.

Harley-Davidson Inc closed down 8.0 percent after announcing it would close a Kansas City plant in the face of declining shipments.

Apple was down another 1.1 percent in premarket trading on Tuesday, still feeling the effects of news that the company will halve production of its $999 iPhone X smartphone.

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