Economist's Insights

Today’s Trading Activity – Stocks Slip for a Second Day as Treasury Yields, Dollar Rebound

Apr 19, 2017

The major U.S. stock indices gave up early gains to close lower for a second day as Treasury yields climbed and the Dollar recovered a portion of Tuesday’s drop. It took a while longer for the S&P to move into negative territory as the Dow suffered early from an outsized impact of a bad day for IBM. After reporting declining YoY revenues for a 20th consecutive quarter on Tuesday, the technology conglomerate accounted for 57 of the Dow’s 119 point drop on Wednesday. Energy companies were the biggest drag on the S&P. Crude prices fell 3.5%, the most in more than a month, after the EIA reported a smaller-than-expected drop in U.S. crude inventories, an unexpected build in gasoline inventories, and the highest U.S. production since August 2015. Treasury yields rebounded from Tuesday’s rally with the 2-year yield closing up 1.6 bps at 1.18%, the 5-year yield adding 3.9 bps to 1.74%, and the 10-year recouping 4.6 bps to 2.21%.