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Nasdaq, S&P down; DJI edges up
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U.S. initial jobless claims 190k vs 195k est
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Euro STOXX 600 index up 0.3%
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Dollar, crude up; gold, bitcoin down
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U.S. 10-Year Treasury yield jumps to ~4.06%
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NASDAQ DOWN AS YIELDS JUMP, TESLA DISAPPOINTS (0953 EST/1453 GMT) The Nasdaq Composite and S&P 500 dropped on Thursday as Treasury yields jumped after data showed that U.S. labor costs grew faster than initially thought in the fourth quarter, adding to concerns about a resurgence in inflation. Benchmark 10-year Treasury yields reached 4.083% after the data, the highest since November, while two-year yields hit 4.944%, the highest since 2007. Other data showed that the number of Americans filing new claims for unemployment fell again last week, pointing to sustained labor market strength that could keep the Federal Reserve raising interest rates. The prospect of the Fed hiking rates higher and holding them there for longer has dented risk appetite and sent stocks lower as investors worry about the impact on growth. Tesla Inc also weighed on the market after Chief Executive Elon Musk and team's four-hour presentation on Wednesday offered few details on its plan to unveil an affordable electric vehicle. The stock was last down 6%. The Nasdaq fell 0.6%, and the S&P 500 dipped 0.3%. The Dow Jones Industrial Average eked out gains or 0.2%. Here is Thursday’s opening market snapshot:
(Karen Brettell)
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U.S. 10-YEAR TREASURY YIELD MARCHES TO FRESH MULTI-MONTH
HIGHS (0900 EST/1400 GMT)
The U.S. 10-Year Treasury yield hit 4.083% on
Thursday, which is a fresh high back to early November. This
amid rising concerns that the Federal Reserve will need to
continue to raise rates and keep those rates higher for longer.
The yield is now on track to rise for a sixth-straight week:
With its latest push, the yield is forging above resistance
in the 3.95%-3.98% area which includes a weekly Gann Line and
the 23.6% Fibonacci retracement of the 1981-2020 yield bear
market.
This action can put traders on guard for the yield to challenge the 4.27%-4.3380% area. This zone includes another weekly Gann Line as well as the October 2022 high. The 4.3380% mark was the highest level since November 2007. The 4.3380% level protects against the potential for a further rise to the 5%+ area. The yield will need to close Friday back below 3.9490% to end the five-week win streak. Such a turn could then see the yield chop its way back down to the 3.55%-3.40% area as a number of weekly Gann Lines are providing yield support in this zone. The yield's mid-January trough was at 3.3210%.
(Terence Gabriel)
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(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)
