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U.S. Stocks Fall as Treasury Auction Disappointment and Eurozone Concerns Weigh

Strategic Insights

— 1 min read

A disappointing U.S. Treasury auction and deepening concerns about the eurozone's ability to rescue Greece led to a decline in U.S. stocks for the second consecutive day. The rally in the Dow Jones Industrial Average was erased in the final half hour of trading, and the 10-year Treasury note's yield rose to its highest level since June. The stronger dollar had a negative impact on the energy sector, with Schlumberger Ltd. and ConocoPhillips leading declines in 38 out of 40 energy companies in the S&P 500 Index.

Key Takeaways:

  • U.S. stocks fell for a second day due to a disappointing Treasury auction and concerns about the eurozone's debt crisis.
  • The 10-year Treasury note's yield rose to its highest level since June, and the dollar rallied, affecting the energy sector negatively.
  • Schlumberger Ltd. and ConocoPhillips led declines in 38 out of 40 energy companies in the S&P 500 Index.
  • Monsanto Co. and DuPont Co. contributed to the decline in producers of raw materials.
  • Citigroup Inc. advanced 2.9% as the government planned an orderly sale of its stake in the bank.
  • Qualcomm Inc. and Best Buy Co. rallied at least 3.6% on profit forecasts that exceeded analyst estimates.
  • Concerns about global government debt levels are affecting market psychology, with Michael Shinnick of Wasatch Advisors Inc. stating that the market gets concerned when signs indicate that debt problems are near-term rather than long-term.
  • The S&P 500 slipped 0.2% to 1,165.73, wiping out a 1.1% rally and surpassing its highest close in 18 months.

Statistics:

  • The 10-year Treasury note's yield rose to its highest level since June.
  • The S&P 500 slipped 0.2% to 1,165.73.
  • The Dow Jones Industrial Average increased 5.06 points, or less than 0.1%, to 10,841.21.
  • Schlumberger Ltd. and ConocoPhillips led declines in 38 out of 40 energy companies in the S&P 500 Index.
  • Citigroup Inc. advanced 2.9%.
  • Qualcomm Inc. and Best Buy Co. rallied at least 3.6%.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Wasatch Advisors Inc.

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