Markets Right Now: Stocks are mostly lower; bond yields rise

Dow Jones recorded the eighth consecutive winning session

Dow Jones recorded the eighth consecutive winning session

Losses in technology and health care companies helped pull USA stocks lower Tuesday, placing the Dow Jones industrial average on track to end an eight-day winning streak.

The yield on the 10-year Treasury note spiked to a almost seven-year high Tuesday, causing selling in stocks and in particular the ones most sensitive to interest rates.

THE QUOTE: "There's a number of data releases that will grab traders' attention today and could determine whether we see an early rebound in stock markets". By afternoon, those gains were mostly gone.

KEEPING SCORE: The S&P 500 index fell 25 points, or 1 percent, to 2,704 as of 3:30 p.m. The Russell 2000 index of smaller-company stocks gave up 1 point, or 0.1 percent, to 1,598. The Nasdaq fell 59 points, or 0.8 percent, to 7,351. Smaller rival Lowe's Companies Inc (LOW.N) was down 1.0 percent.

TECH TUMBLES: A slide in technology stocks weighed on the market. The Nasdaq composite tumbled 1% and the S&P 500 0.8%. The Nasdaq is up 4 percent.

CHINA FACTOR: President Donald Trump tweeted Sunday that he was working with President Xi Jinping of China to put Chinese telecom ZTE "back into business, fast" after US sanctions threatened ZTE's existence and 70,000 Chinese jobs.


Apple fell 1 percent, Amazon fell 1.9 percent and Wells Fargo climbed 0.9 percent. "The most notable of these is the retail sales data for April, which is expected to be relatively good for a second consecutive month following a few poor numbers that were a little worrying", Craig Erlam, a senior market analyst for Oanda, said in a commentary. Some Fed-watchers have been cautioning that any lasting uptick in inflation or economic growth might spur the Fed to pursue an additional rate increase before year's end.

"A little bit of today's jitters are related to a hangover to yesterday's wrongly placed exuberance that a trade deal was imminent, and the reality is we are in for a long slugfest between the USA and China", said Jon Mackay, investment strategist at Schroders North America in NY.

The rise in bond yields pulled down shares in real estate investment trusts and other high-dividend-paying stocks. Essex Property Trust fell 3 percent to $234.69. The yield on the 10-year Treasury rose to its highest since July 2011.

HIT TO HOUSING: Homebuilders slumped amid expectations that higher mortgage rates may hurt home sales.

Some banks got a boost from higher rates, which make loans more profitable. KeyCorp rose 1.5 percent.

Home Depot Inc (HD.N) shares slipped 1.6 percent after the home improvement retailer missed sales forecasts as the long winter put a damper on demand for spring products.

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