The actions of EE. UU Fall as earnings in employment send even higher bond yields
The actions of EE. UU Fall as earnings in employment send even higher bond yields
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US stocks are lower on Friday, as investors remain concerned about rising bond yields and interest rates. The Labor Department said the economy continues to add jobs at a strong pace, which makes it more likely that rates will continue to rise.
The yield on 10-year Treasuries has soared in the past three days and has not been so high since mid-2011. Bond prices are falling as investors sell them, but Wall Street is also being sold. worries that the rise in interest rates could slow the economy.
KEEP THE SCORE: The S & P 500 Index lost 18 points, or 0.6 percent, to 2,883 at 11:45 a.m. Eastern Time. The Dow Jones Industrial Average advanced 203 points, or 0.8 percent, to 26,423.
Technology companies and smaller and more focused companies in the United States continued to suffer heavy losses. The Nasdaq compound slipped 101 points, or 1.3 percent, to 7,778 as technology and internet companies continued to struggle. The Russell 2000 index lost 17 points, or 1.1 percent, to 1,629.
The Nasdaq has fallen 3.4 percent this week and the Russell has fallen 4 percent. Both indices are on track to reach their biggest declines since the end of March, and Russell is on track to close lower since late May.
IT'S A LIFE: the Labor Department said employers added significantly more jobs in July and August, than previously thought, which offset a slightly disappointing gain in September. The September total was probably reduced by the damage that Hurricane Florence caused the Carolinas.
Employers have added 190,000 jobs on average over the past three months, and the employment rate has fallen to its lowest level since December 1969.
Friday's data suggest that the economy should continue to grow at a strong pace, which means that corporate profits should continue to grow. That is a good sign for actions. At the same time, there are few signs of a large increase in the rate of growth or inflation. Either one would push the Federal Reserve to raise interest rates at a faster rate, which would begin to slow the economy down.
BONDS: Bond prices continued to fall. The yield on 10-year Treasuries rose to 3.22 percent from 3.19 percent. The 10-year Treasury yield is an important benchmark for long-term interest rates and has not been as high since July 2011.
Falling bond prices and rising yields have led to big gains for banks in recent days as higher interest rates mean they get higher profits on mortgages and other loans. Bond yields in Europe also increased.
SWITCHEROO: The massive sale in technology, internet and retail companies continued. Intel lost 1.9 percent to $ 47.63 and Apple fell 1.4 percent to $ 224.74, while Google's parent company, Alphabet, sank 1 percent to $ 1,164.73. Among retailers, Netflix fell 4.4 percent to $ 347.58.
Those sectors have been the ones that have won most in the S & P this year, but they have had heavy losses this week. The banks and the industrial and energy companies, which have fought in 2018, have moved and have performed better than the market in general.
The banks mixed on Friday after big gains the previous two days. The online brokerage E-Trade rose 0.9 percent to $ 52.95, while Goldman Sachs lost 0.9 percent to $ 225.45.
Several major banks will report their third-quarter results at the end of next week as the company's next round of earnings begins.
NO FOLLOW-UP: Tesla shares fell 5.5 percent to $ 266.26 after CEO Elon Musk mocked the Securities and Exchange Commission just a few days after it agreed to settle a SEC filing initiated by the SEC. a tweet that he sent in August.
As part of that agreement, Musk agreed to step down as chairman and submit to supervision when he reports the company's news. His criticism of the SEC does not seem to be news of the company, but may have worried investors who expected their feed to be a bit more boring from now on.
Musk and Tesla are also paying $ 20 million each to end the lawsuit.
COSTLY: Costco wholesale club operator dropped 3.7 percent to $ 223.08 after he said he discovered technology issues related to his financial reporting processes. Costco said he is investigating, but so far he has not encountered any problems with his previous earnings reports.
Abroad: European shares fell for the second consecutive day. The DAX of Germany lost 1.1 percent and the CAC 40 in France fell 0.9 percent. Britain's FTSE 100 fell 1.2 percent. The prices of the bonds in the three countries fell again and the yields increased.
Japan's Nikkei 225 benchmark fell 0.8 percent and Kospi in South Korea fell 0.3 percent. The Hang Seng of Hong Kong fell 0.2 percent.
ENERGY: US benchmark crude rose 0.6 percent to $ 74.75 per barrel in New York and Brent crude, the standard for international oil futures, rose 0.3 percent to $ 84.81 by barrel in London.
COINS: The dollar fell to 113.66 yen to 113.66 yen. The euro fell to $ 1.1514 from $ 1.1515.
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You can contact the AP Markets writer, Marley Jay, at http://twitter.com/MarleyJayAP Her work can be found at https://apnews.com/search/marley%20jay
SOURCE LINK ERESVIRAL.COM https://www.beviral.online
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