|Day's Range||23,828.73 - 24,579.94|
|52 Week Range||20,553.45 - 26,616.71|
Financial markets plunged Tuesday as a trio of investor worries collided, sparking renewed doubts about whether the stock market’s nine-year rally is sustainable.
You need to be at TheStreet's May 5 boot-camp for investors. Not helping market sentiment were 10-year yields topping the 3% mark for the first time in more than four years. TheStreet's founder Jim Cramer lit up sister publication RealMoney with a series of actionable guidance on the markets.
Wall Street dropped sharply on Tuesday as warnings by bellwether companies of higher costs reverberated as the benchmark U.S. 10-year Treasury yield pierced the 3 percent level for the first time in four years. Other companies, including Lockheed and 3M, also gave disappointing updates, adding to the sting of rising Treasury yields. This market rally for the last nine years has been driven by low interest rates, accommodating monetary policy and excess liquidity," said Oliver Pursche, chief market strategist for Bruderman Asset Management in New York.
The Dow Jones Industrial Average tumbled to its lowest level since April 9, as the 10-year bond yield touched 3% today. The Dow slipped 424.56 points, or 1.7%, to 24,024.13, today, while the S&P 500 dropped 1.3% to 2634.56, and the Nasdaq Composite tumbled 1.7% to 7007.35. NatWest Markets strategist Brian Daingerfield noted that it was hard to tell if bonds were driving stocks or stocks driving bonds.
Caterpillar, an industrial heavyweight, tumbled 6.20 percent after management said first-quarter earnings would be the "high water mark" for the year and warned of increasing steel prices, although the company beat earnings estimates due to strong global demand. The S&P 500 and the Dow fell the most in two-and-a-half weeks, and the Dow Jones Industrial Average was down for a fifth day in a row. The S&P 500 is down 1.5 percent year-to-date.
By now, the average investor has heard that the U.S. 10-year government bond yield hit 3% early Tuesday for the first time in about four years.
The U.S. stock market has been struggling to break out of a tight trading range for months, and increasingly investors seem concerned about the implications this could hold for the lengthy bull run. “Over the past several months, the market has become much narrower, a classic sign of underlying deterioration—in line with our outlook for 2018.
The Dow Jones Industrial Average contains more than just industrials. 3M's (MMM) earnings this morning helped the industrials become the worst-performing sector today. 3M, the industrial products manufacturer, reported less-than-ideal earnings today: The $2.50 earnings per share and $8.3 billion sales fell in line with estimates, but the company said its full-year earnings might be lower than expected.