Wall Street ends little changed as higher yields weigh on tech stocks
- Tesla falls after losing more than 15% last week
- Boeing reaches its highest level in three months
- Chinese real estate industry struggles weigh on metal miners
- Dow down 0.04%, S&P 500 stable, Nasdaq down 0.04%
NEW YORK, Nov. 15 (Reuters) – Wall Street indices closed Monday’s session near unchanged as rising Treasury yields dampened appetite for tech stocks, while Boeing stocks rose following signs of demand for its cargo planes.
The tech sector (.SPLRCT), down 0.11%, was one of the biggest drag of the day as US Treasury yields rose, the yield on the benchmark Treasury bond 10-year-old American hitting its highest level since October 27. returns tend to weigh on high growth areas such as technology, as they discount the industry’s future earnings.
Bank stocks (.SPXBK), which are benefiting from higher yields, advanced with higher bond yields as investors positioned for the potential effects of the Federal Reserve’s cut in its massive asset purchases and before a planned sale of new 20-year bonds later during the week.
“Wall Street is completely obsessed with what’s going on in the bond market. We’re starting to see yields rise and that, ultimately, will signal that there’s a lot more nervousness that the Fed might be a little behind. in the game on delivery higher rates and will be forced to react much faster, given inflationary pressures, âsaid Ed Moya, senior market analyst at OANDA.
âYou are seeing mixed trading right now because, while many traders wonder if these inflationary pressures will keep T-bills or rates higher, you are also seeing improvement in manufacturing in the Empire State and much more. ‘optimism abroad. “
Data on Monday showed manufacturing activity in New York City jumped to 30.9 in November, well above the previous reading of 19.8 and the estimate of 21.2.
The Dow Jones Industrial Average (.DJI) fell 12.86 points, or 0.04%, to 36,087.45, the S&P 500 (.SPX) fell 0.05 points, or flat, to 4,682, 80 and the Nasdaq Composite (.IXIC) lost 7.11 points, or 0.04%, to 15,853.85.
This week the focus will be on earnings reports from several major retailers including Walmart Inc (WMT.N), Target Corp (TGT.N), Home Depot Inc (HD.N) and Macy’s Inc (MN) . Their results will end a season of optimistic third-quarter earnings, which helped push Wall Street to new highs.
Retail sales data for October is also due on Tuesday and should reveal signs of any impact inflation has had on consumer spending.
Boeing Co (BA.N), up 5.49%, was the main driver of the Dow Jones Industrials as the stock closed at a three-month high after Emirates airline announced an order for two 777 Freighters and that Saudi Arabian Airlines was in talks with the aircraft manufacturer for an order for widebody aircraft. Read more
The Dubai Airshow event is the first major aerospace conference since the pandemic decimated passenger air travel, with investors watching to see how the industry is coping with the new dynamics.
Electric-car maker Tesla Inc (TSLA.O) fell 1.94% after chief executive Elon Musk entered dispute with Bernie Sanders as the US senator demanded the rich pay their “fair share” taxes. Read more
Tesla’s declines follow a sharp 15.4% drop last week after Musk dumped a combined $ 6.9 billion worth of company stock. Read more
The S&P materials sector (.SPLRCM), down 0.46%, was among the worst performing sectors in the session due to signs of weakness in the Chinese real estate sector, a key driver of global demand for metals, that weighed on the miners. Read more
Dollar Tree Inc (DLTR.O) jumped 14.28% and was the main percentage gainer on the S&P 500 (.SPX) after activist investor Mantle Ridge LP revealed a 5.7% stake in the discount retailer.
Falling issues outnumbered advancing ones on the NYSE by a ratio of 1.22 to 1; on the Nasdaq, a ratio of 1.26 to 1 favored the declines.
The S&P 500 posted 50 new 52 week highs and 3 new lows; the Nasdaq Composite recorded 129 new highs and 127 new lows.
Volume on the U.S. exchanges was 9.56 billion shares, compared to an average of 10.96 billion for the full session over the past 20 trading days.
Reporting by Chuck Mikolajczak and David French in New York Editing by Matthew Lewis
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