Reuters Insider - Wall Street drops as yields rise
05/10/2018 09:00
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_t5hhs9dp&referenceId=tag:reuters.com,2018:newsml_OV90NJWY3_930&pageId=ReutersNews Source: Reuters Insider Description: U.S stocks ended sharply lower on Thursday as U.S. Treasury yields continued their ascent to multi-year highs on the latest round of strong economic data. Fred Katayama reports. Short Link: https://reut.rs/2CqEikz Video Transcript: Wall Street tumbled mirroring the drop in global financial markets on Thursday. The Dow snapped its five-session winning streak. Fearing accelerating inflation, investors sold stocks and bought bonds on robust economic data. GuideStone Capital Management President David Spika. br/ br/ And if inflation starts to spike driven by wage gains, which largely could be a function of what's happening at Amazon and with a very strong job market, that's something the market doesn't want to see. The fear is that the Fed gets ahead of itself, raises rates too fast, creates a mistake, and causes a market crash. br/ br/ The data sent Treasury yields to a seven-month high. Weekly jobless claims in the US fell to a nearly 49-year low last week and factory orders recorded their biggest increase in almost a year in August. The spike in yields drove American bank stocks up like Bank of America, and caused European shares to suffer their biggest drop in a month. High-flying communication services stocks Alphabet and Netflix tumbled. Investors drinking the Constellation Brands. The Corona beer-maker's shares jumped after its quarterly profit and sales topped forecasts and raised its full-year profit outlook. Eli Lilly's shares rose after the drugmaker's experimental diabetes showed promise in a mid-stage trial