Dow sinks 470 points as 10-year treasury pulls back from one-year high
Investors redeemed the Nasdaq
U.S. equity markets ended mixed Friday as the 10-year yield pulled back from its highest level in a year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 48387.43 | -74.50 | -0.15% |
| SP500 | S&P 500 | 6904.23 | -1.51 | -0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 23468.577219 | -5.77 | -0.02% |
The Dow Jones Industrial Average closed down 475 points, or 1.51%, while the S&P 500 slid 0.48% and the Nasdaq Composite rose 0.56%, clawing back from Thursday's beating which was the worst since October.
10-Year Treasury in focus
The mixed session came as the 10-year yield fell 5.4 basis points to 1.459%. The recent rise in bond yields, to a one-year high of 1.61%, had caused panic among investors worried about a return of inflation. Strategists have suggested the 10-year’s move above the 1.5% level, which equates to the dividend yield of the S&P 500, would put more pressure on equities.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 207.56 | -0.07 | -0.03% |
Looking at stocks, Johnson & Johnson’s one-shot COVID-19 vaccine is expected to receive approval from a Food and Drug Administration panel, paving a way for distribution to begin next week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 20.53 | -0.56 | -2.66% |
GameStop Corp. shares slumped after soaring 142% over the previous two sessions. However, other stocks that have been subject to heightened volatility, like AMC Entertainment Holdings Inc., Bed Bath & Beyond Inc. and Koss Corp., experienced more muted trading activity.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 1.63 | -0.06 | -3.55% |
| BBBY | BEYOND INC. | 6.02 | -0.15 | -2.43% |
| KOSS | KOSS | 4.29 | -0.02 | -0.40% |
Elsewhere, Twitter Inc. outlined plans to double revenue by 2023 with features such as tipping and paid subscriptions to “super follow,” or access exclusive content, from some accounts.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | NO DATA AVAILABLE | - | - | - |
In earnings, Salesforce.com Inc. reported earnings and revenue that outpaced expectations but raised its full-year revenue forecast to below what Wall Street had been anticipating.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CRM | SALESFORCE INC. | 266.23 | +0.15 | +0.06% |
| DKNG | DRAFTKINGS INC. | 34.77 | +0.23 | +0.67% |
DraftKings Inc. reported pro-forma revenue, rose 98% year over year in the three months through December, supported by a favorable sports calendar and strong customer engagement. The sports-betting platform raised its 2021 revenue forecast to between $900 million and $1 billion, up from $750 million to $800 million.
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In commodities, West Texas Intermediate crude oil slid $2.03 to $61.50 per barrel and gold sank $4.630 to $1,728.10 an ounce.
In Europe, Britain’s FTSE 100 was trading lower by 2.3% while France’s CAC 40 and Germany’s DAX 30 were weaker by 1.39% and 0.65%, respectively.
Markets were hit hard across Asia with Japan’s Nikkei 225 plunging 3.99%, Hong Kong’s Hang Seng index losing 3.64% and China’s Shanghai Composite declining 2.12%.