Dow rises as Boeing results buoy stocks

Dow rises as Boeing results buoy stocks

Troy Powers
April 29, 2018

With the 10-year yield hitting the mark of 3 percent, the financial markets all around the globe have fallen rapidly with European and Asian indexes trading on Wednesday.

The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply and rising Federal Reserve borrowing costs. Chemical companies and other materials makers could also see their profits affected as oil prices and other expenses rise.

Other technology stocks in the FAANG group, Facebook, Inc and Netflix Inc, also weighed on the Nasdaq.

Goodyear Tire & Rubber fell 4.9 percent after warning of higher expenses for raw materials. The blue-chip index Dow Jones Industrial Average fell by 423 points (-1.7%) to 24,024.13 points, wiping out an increase of 131 points from the beginning of the session.

Earlier in the session, stocks were lower as surging bond yields sent investors stampeding out of equities. The company, S&P 500, slides down by 0.3 percent whereas "Nasdaq Composite" came down by 0.4 percent. The 10-year Treasury note ( yield hit a new high at 3.026%, not seen since December 31, 2013, according to FactSet data. Eastern time. The Dow Jones industrial average was down 509, or 2.1 percent, to 23,982.

COMMODITIES: Benchmark U.S. crude oil rose 8 cents to $67.78 in NY.

"Fears of "peak earnings" are laughable considering that the average constituent in the S&P 500 has enjoyed year-over-year bottom line growth in excess of 20%", Klein wrote in a note.

Dow rises as Boeing results buoy stocks

The aerospace company topped Wall Street's estimates in the first quarter and raised its forecasts for the year. YIELDS QUESTION: Bond prices slipped again Tuesday. South Korea's Kospi lost 0.9 percent to 2,442.06.

The largest percentage gainer on the TSX was Mitel Networks Corp, which rose 9.6 per cent. The stock tumbled nearly 4% Tuesday after higher expenses at Google parent Alphabet raised concerns about profitability for the tech titans.

Declining issues outnumbered advancing ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners. Brent crude, used to price global oils, lost 15 cents to $73.71 per barrel. Comcast rose 1.6 percent to $33.85 and Fox gained 1.1 percent to $36.42.

The Dow is down 438.81 points, or 1.8 percent.

Wholesale gasoline lost 1.4 percent to $2.09 a gallon. Japan's benchmark Nikkei 225 shed 0.3 percent.

CURRENCIES: The dollar edged up to 108.67 yen from 108.65 yen.

New Offensive Video From Syracuse Fraternity
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