Wall Street dropped sharply on Tuesday as warnings by bellwether companies of higher costs reverberated as the benchmark United States 10-year Treasury yield pierced the 3$ level for the first time in four years.
The index fell a total of 424.56 points or 1.74 percent by closing to 24,024.13, dropping a total of 751.21 points from its session high following a 131-point increase to open trading. The S&P 500 index, meanwhile, ended up about 0.2% at 2,639, as gains in the energy sector (XLE) health-care, consumer discretionary and industrials supported the broad-market benchmark. Nasdaq Composite futures have gained 0.6%.
- US stocks are sinking Tuesday as investors fear that rising oil prices and other costs will slow down growth in company profits. That means costs for companies are up.
Asian shares dipped Wednesday, mirroring a sell-off on Wall Street on worries over slowing growth and falling profits. This was despite Twitter posting a set of upbeat profit results.
Bond prices fell. The yield on the 10-year Treasury rose to 3.02 percent, the highest level since January 2014. Moreover, Facebook, Amazon, Netflix, and Alphabet, formerly known as Google, also known in the industry as the "FANG" stocks, took big losses, a combined $84 billion in market value lost just in today's trading session.
Technology stocks also weighed on the major indexes. The company reported better-than-expected first-quarter earnings and boosted its full-year sales and profit forecast but did not raise its 2018 cash-flow projections.
Investors expected strong profit growth this year thanks to the growing global economy and tax cuts President Trump signed last year.
EU moves to full ban pesticides that harm bees
Emi Murphy, a campaigner at Friends of the Earth said: "This a major victory for science, common sense and our under-threat bees". Without pollinators, and especially bees to spread seeds, many plants (including food crops) wouldn't be able to survive.
Comcast rose 2.7 percent after the largest USA cable company confirmed its $31 billion bid for Sky on the heels of its better-than-expected earnings report.
Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said it hasn't happened yet.
Bond prices slipped again Tuesday.
"Fears of "peak earnings" are laughable considering that the average constituent in the S&P 500 has enjoyed year-over-year bottom line growth in excess of 20%", Klein wrote in a note. The 10-year Treasury note (http://www.marketwatch.com/story/heres-what-it-means-for-the-market-that-the-us-10-year-yields-3-2018-04-24) yield hit a new high at 3.026%, not seen since December 31, 2013, according to FactSet data.
Benchmark U.S. crude oil shed 1.4 percent to $67.70 a barrel in NY.
The Nasdaq is down 138.77 points, or 1.9 percent. Hong Kong's Hang Seng lost 1.1 percent and South Korea's Kospi lost 0.6 percent. The VIX Volatility Index was lower at 17.84 for a loss of -0.18 points or -1.00%.