Global Stock Markets
Stocks were poised to decline for a second day on Tuesday, as Dow
futures tumbled nearly 150 points and futures for other major indexes
pointed to losses at the open.
Climbing U.S. bond yields, which imply a rise in borrowing costs, looked set to weigh on stocks in a repeat of Monday’s action.
Investors are looking ahead to the State of the Union address by President Donald Trump, while a busy day for corporate earnings will see big names such as McDonalds Corp. and Pfizer Inc. report.
What are stock futures doing?
Dow Jones Industrial Average futures YMH8, -0.84% slid 188 points, or 0.7%, to 26,237, while those for the S&P 500 index ESH8, -0.46% dropped 13.35 points, or 0.5%, to 2,840.25. Nasdaq-100 futures NQH8, -0.43% fell 31.5 points, or 0.5%, to 6,961.
The Dow DJIA, -0.67% and S&P 500 SPX, -0.67% had their worst day of the year so far on Monday, with each gauge closing down 0.7%, to 26,439.48 and 2,853.53, respectively. The Nasdaq Composite Index COMP, -0.52% declined 39.27 points, or 0.5%, to 7,466.51, to log its second-worst daily drop this year.
What are the drivers for the markets?
Higher borrowing costs, which weighed on stocks Monday, showed no signs of letting up. Rising bond yields can crimp demand for assets perceived as riskier, such as stocks, particularly when those yields are higher than those of equities.
On Monday, the yield on the benchmark 10-year Treasury TMUBMUSD10Y, +0.49% shot to 2.695%, its highest level since April 2014, having touched an intraday high of 2.727%. The yield remained above the 2.7% level on Tuesday.
Politics and economics may provide a catalyst for investors, with Trump set to deliver his State of the Union address at 9 p.m. Eastern Time. Ahead of that, the Federal Reserve will begin its two-day policy meeting.
Which stocks look like key movers?
Harley-Davidson Inc. HOG, +0.25% shares tumbled 7% in premarket after the motorcycle maker posted a sales drop. Pfizer Inc. PFE, +0.03% rose nearly 2% after the pharmaceutical group posted stronger-than-expected earnings. Aetna Inc. AET, -3.22% slipped nearly 2% after the insurer reported results, whileMcDonald’s Corp. MCD, -0.33% and Corning Inc. GLW, +1.46% are still to come.
Electronic Arts Inc. EA, +2.13% will report after the regular close of markets.
Apple shares slipped nearly 1% in premarket, after The Wall Street Journal reported, citing sources, that the company is cutting production for the iPhone X for the quarter ending March 31. A similar report in the Nikkei Asian Review weighed on shares Monday.
MetLife Inc. MET, -0.68% shares fell 8% in premarket after the insurer said Monday that it will postpone earnings and revise prior financial reports over unpaid pensions.
Climbing U.S. bond yields, which imply a rise in borrowing costs, looked set to weigh on stocks in a repeat of Monday’s action.
Investors are looking ahead to the State of the Union address by President Donald Trump, while a busy day for corporate earnings will see big names such as McDonalds Corp. and Pfizer Inc. report.
What are stock futures doing?
Dow Jones Industrial Average futures YMH8, -0.84% slid 188 points, or 0.7%, to 26,237, while those for the S&P 500 index ESH8, -0.46% dropped 13.35 points, or 0.5%, to 2,840.25. Nasdaq-100 futures NQH8, -0.43% fell 31.5 points, or 0.5%, to 6,961.
The Dow DJIA, -0.67% and S&P 500 SPX, -0.67% had their worst day of the year so far on Monday, with each gauge closing down 0.7%, to 26,439.48 and 2,853.53, respectively. The Nasdaq Composite Index COMP, -0.52% declined 39.27 points, or 0.5%, to 7,466.51, to log its second-worst daily drop this year.
What are the drivers for the markets?
Higher borrowing costs, which weighed on stocks Monday, showed no signs of letting up. Rising bond yields can crimp demand for assets perceived as riskier, such as stocks, particularly when those yields are higher than those of equities.
On Monday, the yield on the benchmark 10-year Treasury TMUBMUSD10Y, +0.49% shot to 2.695%, its highest level since April 2014, having touched an intraday high of 2.727%. The yield remained above the 2.7% level on Tuesday.
Politics and economics may provide a catalyst for investors, with Trump set to deliver his State of the Union address at 9 p.m. Eastern Time. Ahead of that, the Federal Reserve will begin its two-day policy meeting.
Which stocks look like key movers?
Harley-Davidson Inc. HOG, +0.25% shares tumbled 7% in premarket after the motorcycle maker posted a sales drop. Pfizer Inc. PFE, +0.03% rose nearly 2% after the pharmaceutical group posted stronger-than-expected earnings. Aetna Inc. AET, -3.22% slipped nearly 2% after the insurer reported results, whileMcDonald’s Corp. MCD, -0.33% and Corning Inc. GLW, +1.46% are still to come.
Electronic Arts Inc. EA, +2.13% will report after the regular close of markets.
Apple shares slipped nearly 1% in premarket, after The Wall Street Journal reported, citing sources, that the company is cutting production for the iPhone X for the quarter ending March 31. A similar report in the Nikkei Asian Review weighed on shares Monday.
MetLife Inc. MET, -0.68% shares fell 8% in premarket after the insurer said Monday that it will postpone earnings and revise prior financial reports over unpaid pensions.
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