U.S. Stocks Waver, Bond Yields Rise, New Home Sales Plunge

Barry Adams
23 Aug, 2022
New York City

Stocks traded volatile and energy prices rose for the second day in a row and after falling the most on Monday since June. 

Crude oil prices surged more than 3% and natural gas prices hovered near $10 level as divisions between Russia and the European Union deepened. 

The U.S. Treasury yields also rose and traded near the 3.0% mark for 10-year notes after new home sales plunged 12.6% in July. 

New home sales declined to an annual rate of 511,000 in July from the revised 585,000 sales in June, the Census Bureau reported on Tuesday.  

From a year ago, new home sales plunged 29.6% after home prices continue to advance. 

The median price for a newly-built home increased to $439,400, up from $402,400 in the prior month.

Investors are awaiting hawkish comments from the Fed Chairman Jerome Powell on Friday as central bankers gather for three days at an annual economic symposium in Jackson Hole, Wyoming. 

The Economic Policy Symposium is scheduled to commence on August 25 and convened by the Federal Reserve Bank of Kansas City. 

At the last year's gathering, Fed Chair Powell labeled the current bout of inflation as "temporary" and "transitory" and highlighted the slack in labor markets. 

The wildly wrong assessment of the inflation has forced the Fed to play catch up as inflation surges to a four-decade high driven by soaring energy and food prices and persistent supply chain disruptions. 

The S&P 500 index fell 0.2% to 4,124.97 and the Nasdaq Composite index dropped a fraction to 12,376.02. 

Futures of crude oil prices rose $3.56 to $93.94 a barrel and natural gas increased 25 cents to $9.94 a thermal unit. 

The yield on 10-year Treasury notes declined to 2.998% and two-year notes fell to 3.25%. 

In trading, stocks attempted a rebound in the morning but lacked enthusiasm ahead of the Fed comments. 

Dick's Sporting Goods Inc increased 1.9% to $112.51 after the sporting goods retailer said comparable store sales declined less than anticipated 5.1%, after rising 20.2% in the quarter a year ago. 

The retailer sales in the quarter fell 5% to $3.1 billion and net income plunged 35.7% to $318.5 million. 

Dick's Sporting Goods lifted its comparable sales range for the full-year to a decline between 2% and 6% from the previous estimate of a fall between 2% and 8%. 

Medtronic PLC declined 3.5% to $89.77 after the medical products maker said revenues in the fiscal year 2023 first quarter ending on July 29 declined 8% to $7.4 billion. 

Revenues were impacted by persistent supply chain disruptions. 

Net income in the quarter increased to $929 million or 70 cents a share from $763 million or 57 cents a share a year ago.  

Palo Alto Networks soared 10.9% to $563.90 after the cyber security company reported better-than-expected quarterly results.

The company also announced that the board has approved a 3-for-1 stock split. 

Zoom Video Communications plunged 14.4% to $83.38 after the company reported stronger-than-expected quarterly earnings but lowered its annual revenues estimate.