Wall Street dropped sharply on Tuesday as warnings by bellwether companies of higher costs reverberated as the benchmark United States 10-year Treasury yield pierced the 3$ level for the first time in four years.
The Dow Jones industrial average closed 14.25 points lower at 24,448.69 - notching its first four-day losing streak since March - with Goldman Sachs as the worst-performing stock in the index. The S&P 500 index, meanwhile, ended up about 0.2% at 2,639, as gains in the energy sector (XLE) health-care, consumer discretionary and industrials supported the broad-market benchmark. The Nasdaq Composite dropped 3.62 points, or 0.05%, to 7,003.74. Stock indexes in Europe and Asia are also taking losses. The S&P 600 closed at 955.03 for a loss of -2.34 points or -0.24%.
The S&P is down 35.58 points, or 1.3 percent.
Asia-Pacific stocks were broadly lower Wednesday following sizable declines on Wall Street as the yield on the 10-year U.S. Treasury note hit 3%.
This Tuesday S&P 500 rose by 0.3 percent.
Caterpillar shares fell by 6.2 percent after Halverson's comment, with other corporations following suit.
Canada's main stock index fell on Tuesday as lower oil prices weighed on energy shares, while investors anxious about the prospect of higher global borrowing costs after the benchmark US 10-year Treasury note yield hit 3 per cent for the first time in four years.More news: Cardinals players react to Josh Rosen pick in draft
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Wall Street stocks finished a volatile session mostly higher Wednesday with strong earnings from Boeing offsetting worries about higher interest rates.
Diversified industrial manufacturer 3M Co was the biggest drag on the Dow Jones Industrial Average.
Since the global financial crisis in 2008-09, a combination of low inflation expectations and a bond-buying program by the Federal Reserve have helped keep bond yields low, but they have climbed this year as inflation has picked up.
Bond prices fell. The yield on the 10-year Treasury rose to 2.99 percent.
"They're kind of pulling each other down", said Nolte. The company reported better-than-expected first-quarter earnings and boosted its full-year sales and profit forecast but did not raise its 2018 cash-flow projections. Analysts estimate 21.1 per cent growth in earnings for the quarter, according to Thomson Reuters data.
Options traders are targeting a big breakout for the US dollar.
Texas Instruments Inc. (NASDAQ:TXN) reported first-quarter earnings of $1.35 per share on $3.79 billion in revenue - more than analysts were expecting - and gave an upbeat current-quarter outlook. "Futures are slightly higher as earnings over the past 24 hours have been a net positive, while macro-economic issues (trade, Mueller/Cohen, Iran, etc.) remain quiet", writes The Sevens Report's Tom Essaye.