Shares slide as bond yields rise

Philip Moustakis, former attorney with the SEC’s Enforcement Division, argues that creating new rules in response to any novel situation makes the rules too specific and difficult to enforce.

US equity markets were mixed on Monday as technology stocks pulled back on valuation concerns and cyclical gains.

Mega-cap tech stocks like Apple Inc., Tesla Inc., and Microsoft Corp. were under pressure as inflation concerns fueled bond yields and weighed on growth names.

ticker safety Latest change Change%
AAPL APPLE INC. 126.59 -3.28 -2.53%
TSLA TESLA INC. 741.69 -39.61 -5.07%
MSFT MICROSOFT CORP. 233.05 -7.92 -3.29%

The 10-year yield rose nearly 4 basis points to over 1.38% early Monday before pulling back. Wall Street analysts fear that a movement above the 1.5% level would lead to distortions in the stock markets.


The rise in returns is due to the fact that the U.S. House of Representatives was about to vote on President Biden’s $ 1.9 trillion COVID-19 aid package. Passing the bill would likely heighten investor concerns about inflation in the coming months as the trillion in COVID-19 relief find its way through the US financial system.

In the meantime, economically sensitive sectors such as industry, finance and energy provided support.

The Dow Jones Industrial Average was up 24 points, or 0.08%, while the S&P 500 and Nasdaq Composite were down 0.48% and 1.55%, respectively.

ticker safety Latest change Change%
Me: DJI DOW JONES AVERAGE 31553.34 +59.02 + 0.19%
SP500 S&P 500 3886.37 -20.34 -0.52%
I: COMP NASDAQ COMPOSITE INDEX 13624.631848 -249.83 -1.80%

Elsewhere, Boeing Co. has recommended that airlines stop their 777 jet flights powered by Raytheon Technologies Corp. Pratt and Whitney PW4000 engines. after the engine of a United plane broke in the sky over Denver on Saturday. UK Transaction Secretary Grant Shapps said Monday that 777s powered by PW4000 engines will be temporarily banned from entering UK airspace.

ticker safety Latest change Change%
BA BOEING COMPANY 219.14 +1.79 + 0.82%

Goodyear Tire & Rubber Co. has agreed to buy rival Cooper Tire & Rubber Co. for $ 2.8 billion in cash and stock. The deal pays Cooper Tire shareholders $ 41.75 per share in cash and 0.907 newly issued Goodyear shares for each Cooper Tire share they own.

ticker safety Latest change Change%
GT GOODYEAR TIRES 16.72 +2.83 + 20.34%
CTB COOPER TIRE & RUBBER COMPANY 57.03 +13.17 + 30.03%

In the meantime, M&T Bank Corp. People’s United Financial Inc. in stock for $ 7.6 billion, a 13% premium on Friday’s closing value. People’s United shareholders will receive 0.118 M&T Bank shares for every People’s United share they own.

ticker safety Latest change Change%
MTB M&T BANK 154.55 +4.69 + 3.13%
PBCT HUMAN UNITED FIN. INC. 17.98 +2.31 + 14.70%

The shares of Kohl’s Corp. were significantly higher after a group of activist investors with a combined 9.5% stake named nine directors to the chain’s board of directors.

ticker safety Latest change Change%
KSS KOHL’S CORP. 57.79 +5.06 + 9.60%

As a result, Dish Network Corp.’s quarterly revenue increased. despite a 41% year-over-year decrease in the number of pay-TV subscribers.

In commodities, West Texas Intermediate crude rose $ 1.83 a barrel to $ 61.07 a barrel after Goldman Sachs Group raised its guidance to $ 72 a barrel for the third quarter of this year. Gold, meanwhile, rose $ 33.90 to $ 1,811.30 an ounce.

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The European markets were quoted lower across the board, with the French CAC 40 falling 0.11%, the British FTSE 100 falling 0.18% and the German DAX 30 falling 0.31%.

In Asia, the Japanese Nikkei gained 0.46%, while the Hong Kong Hang Seng and China Shanghai Composite fell 1.06% and 1.46%, respectively.

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