Economist's Insights

Today’s Trading Activity – Treasurys Give up Rally to End Unchanged, Wal-Mart Boosts Dow to Another Record

Oct 10, 2017

The Dow led U.S. stocks to a daily gain Tuesday as the blue-chip index rose 0.31% to its 47th record high of the year. The S&P recovered all of Monday’s losses after rising 0.23% and the Nasdaq lagged with a gain of 0.11%. Stocks gave up early gains but managed to recover steadily through the afternoon. Wal-Mart contributed nearly a third of the Dow’s almost 70-point gain after rising 4.5% in its biggest daily gain since May 2016. In its updated guidance, the Company projected 3% revenue growth for its upcoming fiscal year and a massive 40% gain in e-commerce sales. The Company also announced a $20B share buyback. Wal-Mart’s rise pushed consumer staples to the top of both the Dow and S&P. Treasurys were volatile Tuesday but ended nearly unchanged on the day. Yields dropped sharply around 9 a.m. CT and reached their daily lows just before 10 a.m. CT. However, momentum shifted and yields climbed steadily back to the close. After falling more than 4 bps intraday, the 10-year yield closed up 0.2 bps at 2.36%. The 2-year yield moved the most, rising 0.2 bps to 1.52%. Despite the recovery in yields, the Dollar remained weaker and closed near its session lows.