Boeing's big gain ends five-day losing streak for the Dow

Apr 29, 2018, 13:26
Boeing's big gain ends five-day losing streak for the Dow

The Dow opened slightly higher on Wednesday, boosted by Boeing's 3.4 per cent jump after strong results, while the Nasdaq and S&P 500 were little changed as U.S. bond yields climbed above the 3 per cent level. Thanks to a big gain from Boeing, the Dow Jones industrial average snapped a five-day losing streak and rose 59.70 points, or 0.2 percent, at 24,083.83. The S&P 500 fell 1.9 percent, with consumer staples and technology sliding. The Nasdaq composite gave up 3 points, or 0.1 percent, to 7,003.

Stocks tumbled Tuesday after companies including Caterpillar, 3M and Sherwin-Williams said they're seeing higher costs.

The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply and rising Federal Reserve borrowing costs.

Twitter fell by nearly 2.5 per cent after the social media company said it expects a slowdown in revenue growth and rising costs.

Stocks climbed in early trading as companies like Caterpillar, appliance maker Whirlpool, and Fifth Third Bancorp posted strong quarterly results.

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"There is a lot of buzz among strategists about the Fed raising rates three or even four more times this year, which is adding to the nervousness on Wall Street", said Ken Berman, strategist at Gorilla Trades.

Comcast rose 3.7 percent after the US cable company submitted a $31 billion offer for pay-TV group Sky, challenging an already agreed but lower takeover bid from Rupert Murdoch's Fox.

Technology stocks also weighed on the major indexes.

Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year.

This was over a surge in government-issued debt due arising out of a revenue shortfall - and is related to the Trump administration's massive corporate tax cut, which was passed in December past year.

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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.

Bond prices slipped again Tuesday.

ENERGY: Benchmark U.S. crude oil shed 1.4 percent to $67.70 a barrel in NY. The 10-year Treasury note ( yield hit a new high at 3.026%, not seen since December 31, 2013, according to FactSet data. Germany's DAX is down 1.4%, as the 10-year bund yield tapped its highest point since March 9.

Another market favorite, online retailer Amazon, shed 3.8 percent to $1,460.09. The VIX Volatility Index was lower at 17.84 for a loss of -0.18 points or -1.00%.

Benchmarks in Hong Kong and South Korea fell as much as 1% by midday, while a number of other markets logged declines of at least 0.5%.

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