Utilities Stocks Fall After Jobs Data Prompts Spike In Treasury Yields

Utilities stocks are trading broadly lower early Friday, as a spike up in Treasury yields following a strong May jobs report has taken some of the shine off sector known for its relatively-high dividend yields. The SPDR Utilities Select Sector ETF slid 1.1% in premarket trade, putting it on course to open at the lowest level since Oct. 17, 2014. Among the shares of some of the XLU's more heavily-weighted components, Duke Energy shed 1.1%, Southern Co. slid 1%, American Electric Power fell 1.8% and PG&E Corp. lost 0.6%. The XLU's dividend yield 3.52%, above the S&P 500's dividend yield of 2.06%, according to FactSet. The yield on the 10-year Treasury note climbed to 2.393%, and hit an eight-month high of 2.438% earlier in the session.