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Overnight Markets: Wall Street ends little changed as US yields rise

Overnight Markets: Wall Street ends little changed as US yields rise

US stocks ended the session little changed on Monday as US bond yields rose to 3% level, unsettling investors, and amid a mixed bag of earnings reports.

The Dow Jones Industrial Average declined 14 points, or 0.06%, to 24,449, the S&P 500 added 0.14%, or 0.01%, to 2,670 and the Nasdaq Composite fell 18 points, or 0.25%, to 7,129.

US bond prices fell, with the 10-year yield hitting its highest in over four years at 2.998%. Investors are worrying about the growing supply of government debt and accelerating inflation as oil and commodity prices have been rising in recent weeks.

Stocks were little changed ahead of earnings from some big names in the technology and consumer discretionary sectors this week, with Amazon.com falling 0.6% and Microsoft closing flat.

Hasbro Inc. shares recovered from an earlier drop to close 4% higher even after the toy maker’s adjusted profit and sales missed expectations.

Kimberly Clark Corp. shares declined 1.5% even as the company’s earnings beat expectations.

Shares of Alcoa Corp slumped 14% as the Treasury Department said it’s extended its wind-down period for dealing with Rusal, the sanctioned Russian aluminum giant.

Shares of Arconic Inc., which was spun off from Alcoa Corp, fell 5.2%. Shares of Box Inc. BOX, +10.94%   jumped 11%, the most since making its debut as a publicly traded company, after Social Capital’s Chamath Palihapitiya made a bullish call on the company.

Commodities sold off after the US hinted it might relieve sanctions on Russia’s biggest aluminium producer United Company Rusal Plc.

Three-month aluminium on the London Metal Exchange, which hit a seven-year high on Thursday, was last down 8.7% at $2,254.50 a tonne. Shares of aluminium company Alcoa tumbled 13.51%.

Spot gold dropped 0.8% to $1,324.66 an ounce.

In Asia, share markets mostly gained on Tuesday in morning session despite the Dow and the Nasdaq stumbling amid a decline in technology shares.

In Australia, the ASX 200 climbed 0.2%. Japan's Nikkei 225 was up 0.5%. Across the Korean Strait, the Kospi traded flat.

In greater China, Hong Kong’s Hang Seng Index was up 0.87%, while on the mainland, the Shanghai Composite Index surged 1.42%.

 

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Profile: Kevin Doran's formula for success at AJ Bell

Profile: Kevin Doran's formula for success at AJ Bell

From a degree in theoretical physics to teaching and becoming one of the youngest chief investment officers in the UK, Kevin Doran has certainly had an interesting career.

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