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U.S. stocks closed little changed on Monday, as Treasury yields climbed higher on concerns over rising inflation. Investors are also awaiting quarterly results from a slew of big retailers later this week. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gave up less than 0.1% or 12.86 points to finish at 36,087.45 points. The blue chip index has now declined in four out of the past five sessions.
The S&P 500 ended almost flat, or marginally lower by 0.05 points to close at 4,682.80 points, limiting its win to two consecutive days of trading. The index now remain just 0.45 away from it record closing high achieved on Nov 8.
Energy and utilities stocks were the biggest gainers. The Energy Select Sector SPDR (XLE) gained 0.8%, while the Utilities Select Sector SPDR (XLU) advanced 1.3%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq lost 0.04% or 7.11 points to end at 15,853.85 points, limiting its win to two straight sessions. Shares of NVIDIA Corporation (NVDA - Free Report) declined 1.2%, while Meta Platforms, Inc. gained 2%. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was up 1.23% to 16.49. A total of 9.56 billion shares were traded on Monday, lower than the last 20-session average of 10.96 billion. Decliners outnumbered advancers on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.26 -to-1 ratio favored declining issues.
Treasury Yields Climb Higher
Stocks didn’t make much movement on Monday after ending last week on a high. The slight decline in stocks came as Treasury yields jumped on anticipation that the fed might taper its monthly bond purchases at a faster rate than expected earlier on growing concerns of inflation.
Tapering is the first step that needs to be taken before hiking rates and the Fed is likely to start it soon and go for a rate hike next year. This has been worrying investors for quite some time and on Monday the 10-year treasury yield crossed over 1.6%, while the 30-year yield touched almost 2%, thus pulling back equities.
Tech stocks tend to take a hit whenever yields rise and it was no different on Monday. Shares of Netflix, Inc. (NFLX - Free Report) declined 0.5%, while Tesla, Inc. (TSLA - Free Report) fell 1.9%.
However, amid all these tension, investors tried to shift focus toward the upcoming quarterly reports from some major retailers later this week.
Economic Data
No major economic data released on Monday except for the NY Empire State Manufacturing Index which climbed to 30.9 in November from 19.8 in the previous month. This was higher than expectations of 21.6. The headline got a boost from the New Orders subindex that jumped to 28.8 from 24.3.
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Stock Market News for Nov 16, 2021
U.S. stocks closed little changed on Monday, as Treasury yields climbed higher on concerns over rising inflation. Investors are also awaiting quarterly results from a slew of big retailers later this week. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gave up less than 0.1% or 12.86 points to finish at 36,087.45 points. The blue chip index has now declined in four out of the past five sessions.
The S&P 500 ended almost flat, or marginally lower by 0.05 points to close at 4,682.80 points, limiting its win to two consecutive days of trading. The index now remain just 0.45 away from it record closing high achieved on Nov 8.
Energy and utilities stocks were the biggest gainers. The Energy Select Sector SPDR (XLE) gained 0.8%, while the Utilities Select Sector SPDR (XLU) advanced 1.3%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq lost 0.04% or 7.11 points to end at 15,853.85 points, limiting its win to two straight sessions. Shares of NVIDIA Corporation (NVDA - Free Report) declined 1.2%, while Meta Platforms, Inc. gained 2%. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was up 1.23% to 16.49. A total of 9.56 billion shares were traded on Monday, lower than the last 20-session average of 10.96 billion. Decliners outnumbered advancers on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.26 -to-1 ratio favored declining issues.
Treasury Yields Climb Higher
Stocks didn’t make much movement on Monday after ending last week on a high. The slight decline in stocks came as Treasury yields jumped on anticipation that the fed might taper its monthly bond purchases at a faster rate than expected earlier on growing concerns of inflation.
Tapering is the first step that needs to be taken before hiking rates and the Fed is likely to start it soon and go for a rate hike next year. This has been worrying investors for quite some time and on Monday the 10-year treasury yield crossed over 1.6%, while the 30-year yield touched almost 2%, thus pulling back equities.
Tech stocks tend to take a hit whenever yields rise and it was no different on Monday. Shares of Netflix, Inc. (NFLX - Free Report) declined 0.5%, while Tesla, Inc. (TSLA - Free Report) fell 1.9%.
However, amid all these tension, investors tried to shift focus toward the upcoming quarterly reports from some major retailers later this week.
Economic Data
No major economic data released on Monday except for the NY Empire State Manufacturing Index which climbed to 30.9 in November from 19.8 in the previous month. This was higher than expectations of 21.6. The headline got a boost from the New Orders subindex that jumped to 28.8 from 24.3.