Markets

US Market Indexes Close Lower on Tuesday

US Market Indexes Close Lower on Tuesday

The benchmark 10-year Treasury yield hit 3.09 percent on Tuesday, its highest level since 2011.

The Dow Jones industrial average gained 68 points, or 0.3 percent, to 24,899.

The S&P 500 rose by 0.1% and closed at 2,730.13 points, with energy, health and resource makers increasing most. Among the worst performers on the S&P 500, Agilent Technologies (A) shares dropped almost 10% after the maker of medical instruments and other equipment posted quarterly earnings that matched forecasts late Monday. Germany's DAX fell 0.1 percent after new data showed the country's economy slowed in the first quarter.

Stocks are moving mostly lower in midday trading on Wall Street, led by technology and health care companies.




The proximate trigger for the rise in yields was the release of USA retail sales data, which contained some upward revisions to prior months, and an Empire manufacturing survey that showed the highest prices paid component since 2011. The Nasdaq is up 4 percent. Mortgage rates, which have been rising this year, tend to track the movement in the 10-year Treasury yield.

Stocks are broadly higher at midday on Wall Street as investors hope that trade tensions will ease between the USA and China. Vaneck Vectors Semiconductor's stock rose 1.7% after the news. Ulta Beauty added 1.1 percent to $249.64. Copper slipped 4 cents, or 1.2 percent, to $3.06 a pound. Brent crude, used to price global oil, added 20 cents to $78.43 in London.

The dollar rose to 110.38 yen from 109.66 yen late Monday.

The greenback's gains weighed on precious metals prices. Soon-to-be NY Fed President Williams noted that "inflation has just barely reached our 2 percent goal" and said that he thought the chances of two or three additional hikes this year were reasonably balanced. Silver dropped 38 cents, or 2.3 percent, to $16.27 an ounce. Williams said he thought the "new normal" for the neutral rate was around 2.5% (he added that he didn't expect the fiscal stimulus to have any more than a 0.25% impact on neutral) while Kaplan put it in a range of 2.5-3%. Hong Kong's Hang Seng dropped 1.2 percent.