Economist's Insights

Today’s Trading – Stocks Mixed as Oil Rallies, Treasury Yields Rise on Weak 10-Year Auction Results

May 10, 2017

The S&P clawed its way to another daily gain, besting its previous record high by just 0.25 points. The index was carried by energy companies after crude prices rose 3.3% in their best day since December 1. Official data confirmed crude inventories fell by the most this year and gasoline supplies ticked lower. The Nasdaq rode its recent momentum to another all-time high close. The Dow was not as fortunate, falling 33 points thanks largely to hefty losses by Boeing and Disney. Boeing dragged 26 points from the Dow after announcing it was suspending flights of its 737 MAX jets due to a potential manufacturing issue with the aircraft’s engines. Disney accounted for another 17 points of loss after reporting better-than-expected quarterly bottom line results but a miss on revenues. The Dollar was little changed despite Treasury yields resisting the pull from lower yields in Europe and shifting higher by 1 to 1.5 bps across the curve. Yields had moved lower but jumped after an auction of 10-year notes tailed by 1.8 bps, the bid-to-cover dropped to the lowest since February, and indirect bidders took their lowest share since 2016.