BUSINESS US stocks close mixed on retreat of 10-yr Treasury yield

BUSINESS

US stocks close mixed on retreat of 10-yr Treasury yield

Xinhua

10:01, November 25, 2021

NEW YORK, Nov. 24 (Xinhua) -- U.S. stocks ended mixed on Wednesday as the 10-year Treasury bond yield pared its gains in the morning.

The continuous expansion of U.S. inflation prompted the 10-year Treasury bond yield to reach 1.697 percent on Wednesday morning before slipping back to 1.666 percent at the closing of the market.

The closely followed U.S. personal income expenditure price index grew 0.6 percent month on month in October higher than 0.4 percent of expansion in the previous month, according to the data issued by the U.S. Department of Commerce on Wednesday morning.

The tech-heavy NASDAQ Composite Index managed to have a meaningful rebound after substantial drop in previous two sessions amid the spike of benchmark Treasury bond yields.

The Dow Jones Industrial Average was down 9.42 points, or 0.03 percent, to 35,804.38. The S&P 500 increased 10.76 points, or 0.23 percent, to 4,701.46. The Nasdaq Composite Index was up 70.09 points, or 0.44 percent, to 15,845.23.

The latest estimate of U.S. GDP growth in Q3 was slightly higher than initial estimate, while jobless claims for the week ending Nov. 20 fell to 199,000, reaching the lowest levels since 1969.

However, the weaker-than-expected quarterly earnings with retail brands including Gap Inc. and Nordstrom Inc. dampened market sentiment to some extent.

The shares of Gap Inc. and Nordstrom Inc. shed 24.12 percent and 29.03 percent, respectively, on Wednesday.

"We are not buyers of the breakout in specialty retail stocks. Macro headwinds are likely to act as a drag on relative performance once consumer spending on durable goods normalizes," said Salvatore Ruscitti, U.S. equities strategist with MRB Partners on Wednesday.

Still, Ruscitti said profit margins for the members of S&P 500 Index held up remarkably well in Q3 despite rising input costs and they should remain resilient in a backdrop of solid nominal GDP growth.

U.S. stock markets would be closed on Thursday on the occasion of Thanksgiving holiday.

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