Stocks Plunge after Yields Reach 5.25%

Bond yields surpassed 5.25% in today’s session causing a selloff in stocks.
Higher rates make mortgages more expensive and could slow corporate deal-making.

The S&P 500 Index led to the downside today with a loss of 1.1%. Comverse
Technology and Dean Foods led the index lower with losses of 5.5% and 4.3%
respectively.

July crude futures fell 0.7% to $65.36 per barrel. Gold futures for August delivery fell 0.9% to $653.10 an ounce, which marks a new 12-week low.

Around Europe, Germany’s DAX Index fell 0.4% to finish at 7,678.26, France’s
CAC 40 Index lost 0.7% to 5,898.16, and Britain’s FTSE 100 Index fell 0.7% to
6,520.40.

Today’s PowerRatings Heat Map is looking fairly mixed with no sectors showing overwhelming strength or weakness.  Click here to view all 33 Heat Map sectors.   

Click here to see our new list of indicators that includes Gaps Down 5% or More, 2-Period RSI Below 2, Stocks Up 10% or More.  Historically proven edges make these a great place to start making a watch list. 

Stocks in Motion

All Around Growth Lifts Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating)
Q2 Profit By 27% (full story). LEH shares rose by
0.5%.

Take-Two Interactive
(
TTWO |
Quote |
Chart |
News |
PowerRating)
Q2 Loss Widens As Revenues Decline; Reveals Restructuring Plans; Guides Q2, Q4, FY07 (full story). TTWO shares jumped
5%.

Dean Foods
(
DF |
Quote |
Chart |
News |
PowerRating)
Trims Q2, FY07 Adj. EPS Forecast, Below Street View, On Higher Dairy Costs And Oversupply Of Raw Organic Milk (full story). DF shares lost 4.3%.

Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating)
Narrows Q2 Outlook (full story). TXN shares fell by
1.7%.

Cal Drive
(
DVR |
Quote |
Chart |
News |
PowerRating)
To Buy Horizon Offshore
(
HOFF |
Quote |
Chart |
News |
PowerRating)
For $650 Mln (full story). DVR shares fell
3%, while HOFF shares jumped over 10%.

For more stories as they happen, go to our Breaking News section.

Market Snapshot

Dow

-129.95 13,295.01

NASDAQ

-22.38 2,549.77

S&P 500

-16.12 1,493.00

 

NYSE NASDAQ

Volume

2,966,936,000 2,046,854,000

Advances

453 738

Declines

2828 2295

Up Volume

361 490

Down Volume

2413 1507

New Highs

57 86

New Lows

140 104

Strongest/Weakest Sectors

Strongest Sectors

Weakest Sectors

GSTI Services Index (GSV) Nasdaq Transportation Index (TRANX)
S&P Insurance Index (IUX) GSTI Internet Index (GIN)
Nasdaq Telecom Index (IXTCX) Dow Jones Equity REIT Index (DJR)

 

Economic News

Treasury Budget -$67.7 bln vs -$68 bln
consensus

Darren Wong

Associate Editor

darrenw@tradingmarkets.com