U.S. equity markets were pressured Wednesday as a jump in bond yields rattled investors.
|I:DJI||DOW JONES AVERAGES||34046.66||-90.65||-0.27%|
|I:COMP||NASDAQ COMPOSITE INDEX||13988.454712||+38.24||+0.27%|
The Dow Jones Industrial Average lost 121 points, or 0.38%, while the S&P 500 and the Nasdaq Composite fell 1.3% and 2.7%, respectively.
The losses came as the 10-year Treasury yield rose 5.6 basis points to 1.469%, reigniting investor fears of a move above the S&P 500 dividend yield of 1.5%.
Mega cap technology stocks, including Tesla Inc. and Microsoft Corp. ended sharply lower.
This as investors rotated into more cyclical names including JPMorgan Chase & Co. and American Express Co. which both limited losses on the Dow as did Chevron.
|JPM||JPMORGAN CHASE & CO.||148.82||-1.76||-1.17%|
|AXP||AMERICAN EXPRESS CO.||148.02||+0.80||+0.54%|
In M&A news, arts and crafts retailer Michaels is going private, in a deal with Apollo Global Management, valued around $5 billion, including debt.
In the casino sector, Las Vegas Sands Corp., founded by the late Sheldon Adelson, reached a deal to sell its Las Vegas real estate for $6.25 billion as it shifts its focus to opportunities in Asia. Properties being sold include Venetian Resort Las Vegas and the Sands Expo and Convention Center.
|LVS||LAS VEGAS SANDS CORP||58.28||-2.91||-4.76%|
Elsewhere, Rocket Mortgage continues to see unusual volatility as the Reddit community turns its attention to the parent of Quicken Loans. The stock posted its worst decline on record. GameStop also remains in play.
|RKT||ROCKET COMPANIES INC.||22.18||+0.29||+1.35%|
Homebuilders D.R. Horton Inc. and Toll Brothers Inc. were also in focus after the Mortgage Bankers Association said mortgage rates last week rose at their fastest pace in over a year. Higher rates are the latest worry for the sector, which has recently had to grapple with a lumber shortage.
|DHI||D.R. HORTON INC.||93.11||-0.09||-0.10%|
On the COVID-19 vaccine front, President Biden delivered an optimistic outlook late Tuesday.
“We’re now on track to have enough vaccine supply for every adult in America by the end of May,” Biden said Tuesday. However, he warned that life may not return to normal until "this time next year."
|MRK||MERCK & CO., INC.||78.37||-0.86||-1.08%|
|JNJ||JOHNSON & JOHNSON||165.89||-0.80||-0.48%|
This after Merck & Co. and Johnson & Johnson announced they would team up to manufacture the latter’s recently approved single-shot COVID-19 vaccine. The partnership comes after Johnson & Johnson agreed to supply 100 million doses by June, but had run into supply and material issues.
In retail, Bed Bath & Beyond outlined some new strategic initiatives including a suite of new brands to lure younger customers giving the stock a boost.
|BBBY||BED BATH & BEYOND, INC.||26.49||+0.07||+0.27%|
In earnings, Nordstrom Inc. reported sales in its holiday quarter fell 20% from a year ago amid an uncertain retail environment due to COVID-19.
The department store chain said it would have to clear excess merchandise through its off-price channel.
In commodities, West Texas Intermediate crude oil rallied $1.53 to $61.28 per barrel and gold slid $17.80 to $1,715.30 an ounce TO
Overseas markets were higher across the board.
Britain's FTSE 100 paced the gains in Europe, trading up 0.93%, while Germany's DAX 30 and France’s CAC 40 were higher by 0.29% and 0.35%, respectively.
In Asia, Hong Kong’s Hang Seng index advanced 2.7%, China’s Shanghai Composite index rose 1.95% and Japan’s Nikkei 225 gained 0.51%.