Nasdaq, Dow Jones, S&P 500 hold gains, even as yields turn higher
- The stock market is holding onto gains, with a mix of cyclical and growth sectors gaining.
- But an unexpected steepening of the yield curve is weighing a little on tech stocks.
- The Nasdaq (COMP.IND) +0.8% is still in the lead among major averages, but well off highs and the S&P (SP500) +0.6% is closing the gap, thanks to a comeback in cyclicals.
- The Dow (DJI) +0.5% is not far behind, thanks to a price jump in Boeing.
- Stocks got an early bid after the big miss on April nonfarm payrolls helped ease worries about an overheating economy bringing inflation and rate hikes.
- But the Treasury market has turned around from its immediate reaction that saw yields tumble.
- The 10-year yield is up 2 basis points to 1.58%, even after Treasury Secretary Janet Yellen further walking back her comments on rate hikes.
- It got as low as 1.47%.
- The bond market could be dismissing the report as an outlier due to the big downward effects of seasonal adjustments, or still looking at the broader picture.
- "A great deal of the high frequency economic data continued to improve over the past month, with strong declines in initial claims for unemployment, greater levels of job openings and improved mobility data, which is all suggestive of continued healing in labor markets and economic activity," BlackRock CIO Global Fixed Income Rick Rieder writes in a note.
- Among individual stocks, EOG Resources is the best gainer in the S&P after reporting soaring profit.
- Monster Beverage is the biggest decliner on a bottom-line miss.