Morning Minutes

Stocks Struggle Amid Rising Treasury Yields




World markets have been trading flat to down moderately overnight and into this morning with the Hang Seng down 0.9%, the Dax down 0.2% and the FTSE flat. US index futures are also mixed today, with Dow futures up 0.2% and NASDAQ futures down 0.8%.

US treasury yields are on the rise again this morning with the 10-year treasury note yield climbing back up above 4.00% for the first time since November, the 1-year still above 5.00%, and the 2-year climbing above 4.90% for the first time since 2006. These moves have sparked a rally in the US Dollar which is up 0.6% against the Euro and Pound, 0.4% against Gold and up 0.2% against the Loonie. Commodity action is split with copper down 2.1% and WTI Crude Oil up 0.2%. US weekly initial jobless claims remained below 200K (190K vs street 195K) suggesting the job market remains robust.  

Corporate news has been mixed overnight. TD Bank has wrapped up Canadian bank earnings week beating expectations on earnings ($2.23 vs street $2.20), but raising its loan loss provision. In the US, Salesforce ($1.68 vs street $1.36) and Macy’s ($1.88 vs street $1.58) are up 16.0% and 7.0% respectively in premarket trading after their earnings exceeded expectations.  Tesla is down 7.9% after investors were apparently underwhelmed by the company’s investor day presentation.

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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