Retreating U.S. Treasury Yields Support Advances In Stock Market Indexes

Barry Adams
11 Oct, 2023
New York City

Market indexes headed higher after Treasury yields edged lower for the fourth day in a row. 

The S&P 500 index jumped 0.4% and the Nasdaq Composite index advanced 0.6% after the yield on 10-year U.S. Treasury notes declined 12 basis points. 

Positive market sentiment was also supported after Exxon Mobil announced a $60 billion deal to acquire Pioneer Natural Resources and double its energy production in the Permian Basin. 

On the economic front, the producer price index rose 0.5% in September from the previous month, and slower than 0.7% in August, the U.S. Bureau of Labor Statistics reported Wednesday. 

However, wholesale inflation on an annual basis accelerated to 2.2% in the month from 2.0% in the previous month and advanced for the third month in a row. 

Investors are also awaiting the release of the Federal Reserve's policy meeting minutes later in the afternoon. 

Market indexes are likely to trade volatile ahead of the release of September's consumer price inflation report on Thursday. 

  

U.S. Indexes & Yields 

The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62. 

The yield on 2-year Treasury notes decreased to 4.99%, 10-year Treasury notes inched lower to 4.59% and 30-year Treasury bonds edged down to 4.75%. 

Crude oil decreased $0.89 to $85.07 a barrel and natural gas prices increased 8 cents to $3.29 a thermal unit. 

The dollar index edged higher to 105.68, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.  

 

U.S. Stock Movers 

Humana Inc declined 1.2% to $494.0 after the health insurance company said chief executive Bruce Broussard will step down in the second-half of 2024. 

The company named health care industry veteran Jim Rechtin as President and Chief Operating Officer effective January 8, 2024, as part of a long-planned CEO transition and Rechtin will assume chief executive's role after Broussard steps down.  

Sherwin-Williams Company was unchanged at $252.0 and the company said President Heidi G Petz will assume additional role of chief executive from the  start of 2024.

Novo Nordisk AS jumped 3.4% to  $96.34 after the Danish company said it will stop kidney trials earlier because of promising results.

The company's drug therapy Ozempic uses active ingredient semaglutide, which the company also uses in the making of its weight-loss drug Wegovy. 

After the Novo Nordisk's news,  Davita Inc plunged 18% to $54.58 and Fresenius Medical Care dropped 16.7% to $17.45. 

Pioneer Natural Resources Company jumped 1.9% to $241.79 after the company agreed to be acquired by Exxon Mobil in an all-stock merger for $253 a share or $60 billion.