Stock prices ended slightly lower due to rising bond yields
S&P 500 Index ($SPX) (spy) The Dow Jones Industrial Average closed down -0.04% on Monday ($DOWI) (diamond) closed -0.03% lower, compared to the Nasdaq 100 Index ($IUXX) (QQQ) closed at -0.05%.
Stock indexes ended slightly lower on Monday after the 10-year T-note yield rose to its highest level in 4-1/2 months. Expectations for the Fed to cut interest rates are waning following better-than-expected U.S. economic news and recent hawkish comments from the Fed.
Some positive company news provided fundamental support for stock prices on Monday. Tesla closed more than 4% after CEO Musk announced on August 8th that he would unveil robot taxis. DuCommune also closed more than +14% after the board confirmed it had received a unilateral, non-binding acquisition instruction from Albion River. He transfers all outstanding shares for $60 per share in cash. Additionally, real estate and real estate investment trust stocks rose on Monday after the Wall Street Journal reported that Blackstone had proposed a $10 billion ($39.12 per share) acquisition of AIR Communities. did.
Markets are looking ahead to the market direction with Wednesday's U.S. Consumer Price Report and the first-quarter corporate earnings season, which begins in earnest this Friday with earnings from major banks such as JPMorgan Chase, Citigroup and Wells Fargo. waiting.
The market is discounting the possibility of a -25 basis point rate cut of 5% at the next FOMC meeting on April 30-May 1, and 54% at the next meeting on June 11-12.
Overseas stock markets were mixed and calm on Monday. The Euro Stoxx 50 ended at +0.62%. China's Shanghai Composite Stock Price Index fell to its lowest point in a week, closing at -0.72%. Japan's Nikkei stock index ended up +0.91%.
Interest level
June 10-year T-note (ZNM24) Monday's closing price was -12.5 ticks. The yield on the 10-year T-note rose by 1.8 basis points to 4.420%. June T-note prices fell to a 4-1/2-month low on Monday, while the 10-year T-note yield rose to 4.462%, a 4-1/2-month high. T-notes have come under pressure after last Friday's release of a higher-than-expected US payroll of 303,000 people in March, increasing expectations that the Fed will be in no hurry to cut interest rates. Supply pressures will also weigh on short-term Treasuries, as the Treasury Department plans to auction $119 billion of short-term and long-term Treasuries this week, starting with Tuesday's $58 billion reopening three-year Treasury bill auction. are doing.
European government bond yields rose on Monday. The 10-year German Bunds yield rose to 2.456%, its highest level in two and a half weeks, and ended at 2.435%, up 3.6 basis points. The UK 10-year bond yield rose to a five-week high of 4.128% and ended at 4.085%, up 1.6 basis points.
The April Centix Investor Confidence Index for the Eurozone rose +4.6 to -5.9, its highest level in two years, beating expectations of -8.3.
Germany's industrial production increased by +2.1% month-on-month in February, beating expectations of +0.5% month-on-month and marking the largest increase in 13 months.
German trade statistics were mixed. Germany's exports in February fell -2.0% month-on-month, lower than the expected -0.5% month-on-month decline. Imports in February unexpectedly increased by +3.2% month-on-month, compared to the expected -1.2% month-on-month increase.
US securities company
Paramount Global (para) S&P 500 losers, down more than -7% after owner Matrix Asset Advisors expressed concern over Paramount Global's proposal to sell voting stock and merge with Skydance Media led.
Kroger (KR) The stock closed more than -3% after BNP Paribas Exant downgraded the stock from neutral to underperform.
Lamb Weston Holdings (LW) The stock closed more than -2% lower after Barclays lowered its price target from $125 to $105.
Dollar General (DG) Last Thursday, trading down more than -2% on signs of insider selling after SEC filings revealed that EVP and CIO Wenkov sold $958,616 in stock. finished.
Schlumberger Co., Ltd. (S.L.B.) Shares closed more than -1% lower after Cowen lowered his price target from $71 to $64.
Skyworks Solutions (S.W.K.S.) The stock closed over -1% lower after KeyBanc Capital Markets downgraded it from overweight to sector weight.
Eaton Corp Plc (ETN) The stock closed more than -1% lower after Wolf Research downgraded the stock to underperforming its peers.
Perion Network Co., Ltd. (Peri) Full-year sales forecast has been lowered from the previous forecast of $860 million to $880 million to $590 million to $610 million, significantly below the consensus of $868 million and down more than -41%. and completed the transaction.
GE Vernova (GEV) JPMorgan Chase & Co. closed more than +5% higher after upgrading the stock from Neutral to Overweight.
Tesla (TSLA) rose more than 4% to become a major gainer on the Nasdaq 100 after CEO Musk announced that the company would unveil robot taxis on August 8th.
Nike (NKE) The Dow Jones Industrial Average closed more than 1% higher after Hedgeye Risk Management upgraded the stock from hold to buy.
Real estate and real estate investment stocks rose on Monday after the Wall Street Journal reported that Blackstone proposed to buy AIR Communities for $10 billion, or $39.12 per share. As a result, Camden Property Trust (CPT) rose more than +5%, while Central America apartment communities (Maa) It closed at more than +4%. Additionally, Boston Properties (BXP), UDR Co., Ltd. (UDR), and stock housing (EQR) It closed at more than +3%. In addition, Essex Property Trust (ESS) and Avalon Bay Community (AVB) It closed at more than +2%.
De Commune (D.C.O.) Closed more than +14% after confirming that the board of directors had received an unsolicited, non-binding instruction from Albion River Corp. to purchase all outstanding shares for $60 per share in cash. Ta.
Zebra Technologies (ZBRA) The stock closed over +2% after Wolf Research upgraded the stock to outperform its peers with a price target of $337.
Take-Two Interactive Software (two) Shares closed more than +1% higher after Citigroup upgraded the stock from Neutral to Buy with a $200 price target.
UiPath (path) KeyBanc Capital Markets took over coverage of the stock with an Overweight rating and $27 price target, closing over +1%.
Earnings Report (April 9, 2024)
Aehr Test Systems (AEHR), Dakota Gold Corp (DC), Liberty Media Corp-Liberty Liv (LLYVA), Neogen Corp (NEOG), PriceSmart Inc (PSMT), RCI Hospitality Holdings Inc (RICK), SMART Global Holdings Inc (SGH )), WD-40 Co (WDFC).
more stock market news from bar chart
On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Summarize this content to 100 words
S&P 500 Index ($SPX) (spy) The Dow Jones Industrial Average closed down -0.04% on Monday ($DOWI) (diamond) closed -0.03% lower, compared to the Nasdaq 100 Index ($IUXX) (QQQ) closed at -0.05%. Stock indexes ended slightly lower on Monday after the 10-year T-note yield rose to its highest level in 4-1/2 months. Expectations for the Fed to cut interest rates are waning following better-than-expected U.S. economic news and recent hawkish comments from the Fed.
Some positive company news provided fundamental support for stock prices on Monday. Tesla closed more than 4% after CEO Musk announced on August 8th that he would unveil robot taxis. DuCommune also closed more than +14% after the board confirmed it had received a unilateral, non-binding acquisition instruction from Albion River. He transfers all outstanding shares for $60 per share in cash. Additionally, real estate and real estate investment trust stocks rose on Monday after the Wall Street Journal reported that Blackstone had proposed a $10 billion ($39.12 per share) acquisition of AIR Communities. did. Markets are looking ahead to the market direction with Wednesday's U.S. Consumer Price Report and the first-quarter corporate earnings season, which begins in earnest this Friday with earnings from major banks such as JPMorgan Chase, Citigroup and Wells Fargo. waiting.The market is discounting the possibility of a -25 basis point rate cut of 5% at the next FOMC meeting on April 30-May 1, and 54% at the next meeting on June 11-12.Overseas stock markets were mixed and calm on Monday. The Euro Stoxx 50 ended at +0.62%. China's Shanghai Composite Stock Price Index fell to its lowest point in a week, closing at -0.72%. Japan's Nikkei stock index ended up +0.91%.Interest levelJune 10-year T-note (ZNM24) Monday's closing price was -12.5 ticks. The yield on the 10-year T-note rose by 1.8 basis points to 4.420%. June T-note prices fell to a 4-1/2-month low on Monday, while the 10-year T-note yield rose to 4.462%, a 4-1/2-month high. T-notes have come under pressure after last Friday's release of a higher-than-expected US payroll of 303,000 people in March, increasing expectations that the Fed will be in no hurry to cut interest rates. Supply pressures will also weigh on short-term Treasuries, as the Treasury Department plans to auction $119 billion of short-term and long-term Treasuries this week, starting with Tuesday's $58 billion reopening three-year Treasury bill auction. are doing.
European government bond yields rose on Monday. The 10-year German Bunds yield rose to 2.456%, its highest level in two and a half weeks, and ended at 2.435%, up 3.6 basis points. The UK 10-year bond yield rose to a five-week high of 4.128% and ended at 4.085%, up 1.6 basis points.The April Centix Investor Confidence Index for the Eurozone rose +4.6 to -5.9, its highest level in two years, beating expectations of -8.3.Germany's industrial production increased by +2.1% month-on-month in February, beating expectations of +0.5% month-on-month and marking the largest increase in 13 months.German trade statistics were mixed. Germany's exports in February fell -2.0% month-on-month, lower than the expected -0.5% month-on-month decline. Imports in February unexpectedly increased by +3.2% month-on-month, compared to the expected -1.2% month-on-month increase.US securities companyParamount Global (para) S&P 500 losers, down more than -7% after owner Matrix Asset Advisors expressed concern over Paramount Global's proposal to sell voting stock and merge with Skydance Media led.
Kroger (KR) The stock closed more than -3% after BNP Paribas Exant downgraded the stock from neutral to underperform. Lamb Weston Holdings (LW) The stock closed more than -2% lower after Barclays lowered its price target from $125 to $105.Dollar General (DG) Last Thursday, trading down more than -2% on signs of insider selling after SEC filings revealed that EVP and CIO Wenkov sold $958,616 in stock. finished.Schlumberger Co., Ltd. (S.L.B.) Shares closed more than -1% lower after Cowen lowered his price target from $71 to $64.Skyworks Solutions (S.W.K.S.) The stock closed over -1% lower after KeyBanc Capital Markets downgraded it from overweight to sector weight.
Eaton Corp Plc (ETN) The stock closed more than -1% lower after Wolf Research downgraded the stock to underperforming its peers.Perion Network Co., Ltd. (Peri) Full-year sales forecast has been lowered from the previous forecast of $860 million to $880 million to $590 million to $610 million, significantly below the consensus of $868 million and down more than -41%. and completed the transaction.GE Vernova (GEV) JPMorgan Chase & Co. closed more than +5% higher after upgrading the stock from Neutral to Overweight. Tesla (TSLA) rose more than 4% to become a major gainer on the Nasdaq 100 after CEO Musk announced that the company would unveil robot taxis on August 8th.Nike (NKE) The Dow Jones Industrial Average closed more than 1% higher after Hedgeye Risk Management upgraded the stock from hold to buy.
Real estate and real estate investment stocks rose on Monday after the Wall Street Journal reported that Blackstone proposed to buy AIR Communities for $10 billion, or $39.12 per share. As a result, Camden Property Trust (CPT) rose more than +5%, while Central America apartment communities (Maa) It closed at more than +4%. Additionally, Boston Properties (BXP), UDR Co., Ltd. (UDR), and stock housing (EQR) It closed at more than +3%. In addition, Essex Property Trust (ESS) and Avalon Bay Community (AVB) It closed at more than +2%.De Commune (D.C.O.) Closed more than +14% after confirming that the board of directors had received an unsolicited, non-binding instruction from Albion River Corp. to purchase all outstanding shares for $60 per share in cash. Ta. Zebra Technologies (ZBRA) The stock closed over +2% after Wolf Research upgraded the stock to outperform its peers with a price target of $337.Take-Two Interactive Software (two) Shares closed more than +1% higher after Citigroup upgraded the stock from Neutral to Buy with a $200 price target.UiPath (path) KeyBanc Capital Markets took over coverage of the stock with an Overweight rating and $27 price target, closing over +1%.
Earnings Report (April 9, 2024)Aehr Test Systems (AEHR), Dakota Gold Corp (DC), Liberty Media Corp-Liberty Liv (LLYVA), Neogen Corp (NEOG), PriceSmart Inc (PSMT), RCI Hospitality Holdings Inc (RICK), SMART Global Holdings Inc (SGH )), WD-40 Co (WDFC).
more stock market news from bar chart
On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/stocks-finish-modestly-lower-due-to-rising-bond-yields Stock prices ended slightly lower due to rising bond yields
