Treasury Yields Ease and Stocks Meander On Merger Monday

Barry Adams
20 Feb, 2024
New York City

Stocks on Wall Street edged slightly lower in early trading as investors returned from a three-day weekend and reviewed the latest earnings reports. 

Treasury yields turned lower after investors reassessed the interest rate path after two reports suggested hot inflation and a decline in retail sales in January. 

The market mood has been positive despite the ongoing interest rate uncertainties, but increasingly investors are getting more comfortable with elevated inflation and higher interest rates as long as corporate earnings are rising. 

The S&P 500 index has been hovering near a record high, and the Nasdaq Composite is only 1% away from its record high in November 2021. 

 

U.S. indexes and yields

The S&P 500 index decreased 0.4% to 5,001.25, and the Nasdaq Composite fell 0.5% to 15,695.04. 

The yield on 2-year Treasury notes decreased to 4.60%, 10-year Treasury notes inched down to 4.27%, and 30-year Treasury bonds edged down to 4.45%.

WTI crude oil decreased $0.93 to $77.55 a barrel, and natural gas prices increased 3 cents to $1.59 a thermal unit and rebounded from a low last seen in September 2020.

Gold increased by $10.04 to $2,027.60 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.08.

 

U.S. Stock Movers

Walmart increased 2.9% to $175.36 after the general merchandise and grocery retailer reported better-than-expected revenue and earnings in the fourth quarter. 

Separately, Walmart said it plans to acquire smart TV maker Vizio for $2.3 billion and boost its advertising business through the ad-free streaming content on its television sets. 

Vizio jumped 16% to $11.06 and extended its two-day gain to over 40% when the news of a possible deal emerged. 

Home Depot decreased 2.6% to $352.70 after the specialty retailer reported better-than-expected revenue and earnings in the fourth quarter despite consumers retrenching from larger do-it-yourself projects. 

Capital One Financial decreased 3% to $133.0 after the company agreed to acquire Discover Financial in an all-stock deal for $35.3 billion. 

The deal was announced late Monday, and after the merger, Capital One shareholders would control 60% and Discover Financial shareholders would control 40% of the combined company.