US stocks mixed on high bond yields, weaker IMF growth outlook
U.S. stocks moved in and out of positive territory Tuesday as investors focused on steadying Treasury yields as well as a reduced global economic outlook from the International Monetary Fund.
The Dow Jones Industrial Average fell 56.21 points, or 0.21 percent, to 26,430.57. The S&P 500 dropped 4.09 points to 2,880.34. The Nasdaq Composite was up 2.07 points, or 0.03 percent, at 7,738.02.
The 10-year Treasury yield had climbed to 3.25 percent, a 7-year high, but by late morning the yield had slipped to 3.22 percent, lifting investor sentiment.
Shares opened the trading session lower as the IMF cut its outlook for the growth in the global economy to 3.7 percent from 3.9 percent, partly because of worsening trade tensions between the U.S. and China but also tightening financing conditions in emerging markets.
After several days of heavy selling large-capitalization tech stocks lead gainers. Shares of Papa John’s International soared on a report that Trian Fund Management may buy the pizza chain. PPG Industries plunged 9 percent after the paints maker issued third-quarter earnings and sales guidance shy of analysts' expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
On Monday, U.S. stocks see-sawed between sharp losses and modest gains as investors gauged higher interest rates and overseas weakness with the impending earnings season, which should provide more good news about companies' bottom lines.
Major indexes have been under pressure since last week when a bond sell-off sent Treasury yields to multiyear highs.
The technology sector dragged down everything from chip makers to social media companies to software developers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PZZA | PAPA JOHN'S INTERNATIONAL INC. | 49.92 | +2.06 | +4.30% |
| PPG | PPG INDUSTRIES INC. | 122.59 | -0.10 | -0.09% |
U.S. investors will soon turn their attention to corporate earnings. This week marks the kickoff of earnings season, with the big banks reporting on Friday. Expectations are lofty heading into this season.
In Asia on Tuesday, China’s Shanghai Composite rebounded to end the session 0.2 percent higher, after plunging 3.7 percent on Monday. Hong Kong's Hang Seng index fell for a sixth session, sliding 0.1 percent. Japan’s Nikkei ended the day down 1.3 percent.
In Europe, London’s FTSE slipped 0.4 percent, Germany’s DAX is down 0.6 percent, while France’s CAC is off 0.4 percent.