US open: Stocks on the back foot as Treasury yields grind higher

by | Sep 21, 2023

(Sharecast News) – US stocks were trading on the back foot on Thursday as the central bank’s ‘hawkish pause’ the night before percolated through financial markets.
Economic projections submitted by the Federal Reserve’s top official on Wednesday pointed to up two more interest rate hikes before 2023 was out and a slightly higher level for rates at the end of the following year.

Some economists were of the opinion that those projections would likely end up being proved too conservative, but for now the Treasury market was coming under renewed pressure as a result.

As of 1619 BST, the Dow Jones Industrials was slipping 0.54% to or 185.50 points to 34,255.89, alongside a 1.03% or 45.32 point decline for the S&P 500 to 4,356.88.

Volatility also picked up a bit alongside, with the CBOE’s VIX index climbing 7.53% to 16.28.

In parallel, the yield on the benchmark 10-year U.S. Treasury note was climbing by seven basis points to 4.479%.

Nevertheless, Neil Wilson from said: “The Fed is not convinced it’s done but it probably is. This is about optionality rather than desire. Rates are already plenty restrictive. and it would require a change in the outlook for inflation’s stickiness before November to push into another hike.”

US data released on Thursday was mixed, at least on the surface.

According to Labor, initial unemployment claims fell by 21,000 over the week ending on 16 September to reach 201,000 (225,000).

However, Ian Shepherdson at Pantheon Macroeconomics pointed out that WARN notices of mass layoffs from companies were thus far signalling a rebound “in due course”.

The Philly Fed’s regional factory index fell from a reading of 12.0 in August to -13.5 for September (consensus: -1.0).

Existing home sales meanwhile were reported as down by 0.7% month-on-month to reach 4.04m (consensus: 4.1m), which Shepherdson labelled “as grim with worse to come”.

Dow Jones – Risers

Unitedhealth Group Inc. (UNH) $502.11 2.03%
Travelers Company Inc. (TRV) $169.89 0.56%
Microsoft Corp. (MSFT) $322.07 0.40%
Walt Disney Co. (DIS) $82.88 0.38%
Intel Corp. (INTC) $34.81 0.35%
Merck & Co. Inc. (MRK) $107.46 0.14%
Verizon Communications Inc. (VZ) $33.63 0.09%
Dowdupont Inc. (DWDP) $0.00 0.00%
Chevron Corp. (CVX) $166.48 -0.13%
Johnson & Johnson (JNJ) $162.41 -0.31%

Dow Jones – Fallers

Cisco Systems Inc. (CSCO) $53.35 -3.88%
Caterpillar Inc. (CAT) $272.15 -2.32%
Dow Chemical Co. (DOW) $51.52 -1.79%
Salesforce.Com Inc. (CRM) $209.34 -1.73%
Visa Inc. (V) $237.75 -1.70%
Goldman Sachs Group Inc. (GS) $331.42 -1.57%
Nike Inc. (NKE) $92.58 -1.55%
McDonald’s Corp. (MCD) $274.08 -1.13%
Amgen Inc. (AMGN) $268.71 -1.01%
International Business Machines Corporation (CDI) (IBM) $148.34 -0.99%

S&P 500 – Risers

FedEx Corp. (FDX) $260.79 4.10%
Valero Energy Corp. (VLO) $147.66 3.28%
Gap Inc. (GPS) $10.14 3.21%
International Paper Co. (IP) $34.68 2.85%
Centene Corp. (CNC) $69.75 2.45%
Humana Inc. (HUM) $495.55 2.22%
HF Sinclair Corporation (DINO) $59.76 2.12%
Unitedhealth Group Inc. (UNH) $502.11 2.03%
Elevance Health Inc. (ELV) $454.80 2.01%
Macy’s Inc. (M) $10.98 2.00%

S&P 500 – Fallers

Brighthouse Financial, Inc. (BHF) $47.42 -7.50%
Sl Green Realty Corp. (SLG) $39.25 -5.35%
Vornado Realty Trust (VNO) $23.93 -5.04%
CenturyLink Inc. (LUMN) $1.55 -4.60%
PulteGroup Inc. (PHM) $73.17 -4.29%
Eli Lilly and Company (LLY) $545.85 -4.18%
Raymond James Fin Corp. (RJF) $102.10 -4.14%
D. R. Horton Inc. (DHI) $108.64 -4.03%
Cisco Systems Inc. (CSCO) $53.35 -3.88%
United Rentals Inc. (URI) $431.07 -3.79%

Nasdaq 100 – Risers

Kraft Heinz Co. (KHC) $34.33 0.91%
Vertex Pharmaceuticals Inc. (VRTX) $355.06 0.78%
Skyworks Solutions Inc. (SWKS) $96.85 0.54%
Comcast Corp. (CMCSA) $45.74 0.53%
Seagate Technology Plc (STX) $65.95 0.49%
Charter Communications Inc. (CHTR) $450.31 0.48%
Microsoft Corp. (MSFT) $322.07 0.40%
Gen Digital Inc. (GEN) $19.22 0.37%
Intel Corp. (INTC) $34.81 0.35%
American Airlines Group (AAL) $13.09 0.24%

Nasdaq 100 – Fallers

Qurate Retail Inc. (QRTEA) $0.59 -4.31%
Cisco Systems Inc. (CSCO) $53.35 -3.88%
Broadcom Inc. (AVGO) $802.54 -3.37%
Amazon.Com Inc. (AMZN) $131.02 -3.15%
Adobe Systems Inc. (ADBE) $518.94 -3.14%
Dollar Tree Inc (DLTR) $108.02 -2.95%
Paypal Holdings Inc (PYPL) $59.08 -2.92%
Idexx Laboratories Inc. (IDXX) $443.92 -2.51%
Take-Two Interactive Software Inc. (TTWO) $137.21 -2.50%
Western Digital Corp. (WDC) $44.53 -2.46%

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