Wall Street hit by rising bond yields, sinking health stocks

Friday, 02 Feb, 2018

Losses in health care stocks were offset by gains in technology companies and other sectors. The company was the second-biggest percentage loser on the S&P 500. That would be its best month since March 2016.

The Shanghai Composite Index fell 0.7 percent to 3,462.29 while Tokyo's Nikkei 225 was off 8 points at 23,281.39.

Declining issues outnumbered advancing ones on the NYSE by a 3.39-to-1 ratio; on Nasdaq, a 1.75-to-1 ratio favoured decliners.

What's helped to drive markets?

The other worry is that inflation and stronger growth could force the Federal Reserve to speed up its interest rate hikes, lifting bond yields even higher. Brent crude, used to price global oils, gained 22 cents to $68.74 in London. However, the Fed left its benchmark short-term rate at a range of 1.25% to 1.50%. The statement follows a two-day meeting of the central bank's policymakers, including Fed Chair Janet Yellen, who is stepping down when her term expires at the end of this week.

U.S. bond yields are pushing higher, as are warnings about a looming USA stock market correction. The 10-year Treasury yield climbed to 2.73% on Tuesday for the first time in almost four years. Of the companies that have reported, about 80 per cent have beaten Wall Street expectations.

Private businesses in the U.S. hired 234,000 workers in January, below 242,000 in December, but higher than the market expected. The U.S. Labor Department is due to release its more comprehensive report on Friday.

The Russell 2000 is up 39.47 points, or 2.6 percent. That said, the reading was still strong, with any reading over 50 (http://www.marketwatch.com/story/chicago-pmi-slips-from-nine-year-high-2018-01-31) indicating expansion.

Personal income rose to 0.4% in December on the data front that was more than the anticipated 0.3% increase predicted by the experts. If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.

"Equities seem to be appreciating the uneventful State of the Union address from President Trump last night", said Konstantinos Anthis, an ADS Securities analyst, in a note.

In deciding what to focus on - in a stock, say - a typical day trader looks for three things: liquidity, volatility and trading volume.

Electronic Arts jumped 7.2 percent after the video game maker forecast quarterly earnings and sales that were well ahead of what Wall Street analysts expected.

Shares of Boeing Co.

Stocks were lifted earlier by a surge in Boeing (BA.N) which forecast better-than-expected full-year profits and said it expects to deliver a record number of commercial aircraft in 2018, sending its shares up 4.9%.

Fourth-quarter earnings growth fo r the S&P 500 is now seen at 13.2 per cent, up from 12 per cent at the beginning of the year, according to Thomson Reuters data.

Anthem Inc.(ANTM) medical plans dropped by 13,000 in its latest quarter but increased slightly overall past year, the health insurer said Wednesday. Most company stocks have very little volatility. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.