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 | 34200.67 | +164.68 | +0.48% |
| SP500 | S&P 500 | 4185.47 | +15.05 | +0.36% |
| I:COMP | n.a. | n.a. | n.a. | n.a. |
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 | 162.34 | +1.65 | +1.03% |
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 | 154.69 | -1.75 | -1.12% |
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 | 9.33 | -0.57 | -5.76% |
| BBBY | BED BATH & BEYOND, INC. | 25.52 | +0.98 | +3.99% |
| KOSS | KOSS | 18.95 | -0.23 | -1.20% |
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 | TWITTER, INC. | 70.12 | -1.59 | -2.22% |
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.COM, INC. | 232.04 | -1.15 | -0.49% |
| DKNG | DRAFTKINGS | 57.98 | +0.50 | +0.87% |
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%.