US Stocks Turn Lower As Defensive Sectors Goes Trade Trend
The S&P 500 index fell 6.3 points, or 0.3%, to 2,133.04, with eight of 11 main sectors trading lower. Real-estate stocks were declined to more than 2.5%, while utilities or customer -discretionary and industrial sectors fell to nearly 1%. However, a defensive sector that prospered with a 1.6% gain was telecom.
The Health-care sector, on the other hand, was leading earners and heightened by an unexpected amount of earnings from Celgene Corp. (CELG).
The index had been up by nearly 8 points and down by as many as 7 during the session.
Portfolio Manager at Kingsview Asset Management Paul Nolte said, "The market is uneven because earnings have been uneven, investors really are looking at them on a company by company basis. When you roll it all up it doesn't amount to much in moving the market."
The Dow Jones Industrial Average DJIA, -0.05% ended up with just 29.65 points, or 0.2%, at 18,169.68, while Boeing Co. BA, -0.21% shares falls to 1.5%. Verizon Communications Inc. VZ, on the other hand, had -0.68% shares gaining 1.9%. This average has been higher with as many as 59 points and lower by as many as 50.
The Nasdaq Composite COMP, -0.50% fell 34.29 points, or 0.6%, to close at 5,215.97. The index had been up by as many as 24 points and ended near its low daily rate during the session.
Michael Antonelli, equity sales trader at Robert W. Baird & Co. said that a jump in Treasury yields placed much pressure on stocks on Thursday.
"The market is down slightly due to a spike in 10-year Treasury yields to 1.86% in just a few hours. Bonds in general have been a crowded long trade and now that the outlook for the U.K. economy after better-than-expected GDP has shifted, there is an unwinding of these trades," Antonelli said.
On Thursday, the 10-year Treasury's yield rose7 basis points to 1.86%
The yield on the 10-year Treasurys rose 7 basis points to 1.86% on Thursday.
The Dow Jones Industrial Average remained at 18,203.The Dow industrials on Wednesday, however, has been noted with a 0.2% rise .
Antonelli furthered that the investors are still anticipating for the 2016 presidential election's outcome on Nov 8.
"We are unlikely to see anything other than sideways trade until after the elections," he said.
According to the managing director of sales and trading at Themis Trading Mark Kepner, earnings reports have assisted markets from deteriorating through the period that is typically unstable.
Kepner said, "Earnings have been not been spectacular to be a catalyst for markets to go higher, but they definitely helped markets stay close to all-time highs."
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