Stocks end down on interest rate fears, earnings; Dow -1.7%

Daniel Fowler
April 26, 2018

This story will be updated as new information becomes available.

USA stock indexes swung between gains and losses on Wednesday, as Boeing's jump after upbeat results and outlook was negated by declines in technology stocks and rising US bond yields. 3M said raw materials costs are rising, especially for materials derived from crude oil, whose price has been rising, and transportation and logistics expenses are rising as well. But the stock gave up those gains and finished with a loss of 6.2 percent at $144.44. Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12.

The Dow Jones industrial average fell 380 points, or 1.6 percent, to 24,059. Eastern time. It was up as much as 13 points earlier.

The S&P 500 index rose 4 points, or 0.2 percent, to 2,639.

The CBOE Volatility index, a gauge of short-term stock market volatility jumped to more than 1-week high to 18.69 points.

The yield on the 10-year Treasury reached 3 percent for the first time since January 2014. Industrial and basic materials companies and technology firms took some of the worst losses. The company reported a stronger-than-expected rise in revenue and launched a formal bid for Sky (http://www.marketwatch.com/story/comcast-bids-30-billion-for-sky-trumping-fox-2018-04-25)(SKY.LN).

The Dow is down 695.09 points, or 2.8 percent.

Google parent Alphabet fell almost 5 percent and closed the day at $1,022.64.

3M shed 6.8 percent to $201.13.

Greg Sankey's statement on Commission on College Basketball report
The influence of apparel companies like Adidas, which had two people arrested in the probe, was also a subject of the commission. The panel called for the flow of funds from shoe companies to schools and players to be more transparent.

The price of United States government debt influences that of other nations and has an impact on financial markets around the world. So far this reporting season, more than 80% of the S&P 500 companies with reports out have beaten profit forecasts. Verizon, Harley-Davidson and Fifth Third Bancorp all rose.

The Russell 2000 is up 17.77 points, or 1.2 percent.

ENERGY: Benchmark U.S. crude oil fell 10 cents to $67.60 a barrel. The yield on the 10-year Treasury note rose to 2.99 percent from 2.98 percent. The U.S. economy is still on track for a strong 2018 with record low unemployment and steady growth, but rising interest rates and inflation could spur a slowdown in equities investment.

Caterpillar Chief Financial Officer Brad Halverson said during a call with investors that first quarter earnings "will be the high watermark for the year".

The Dow Jones industrial average climbed 47 points, or 0.2 percent, to 24,523.

Wall Street stocks fell sharply on Tuesday on worries about higher interest rates and disappointment over corporate earnings that have not met lofty expectations.

SHIRE'S WILD RIDE: Drugmaker Shire rallied again as the company said it is considering a new offer from Japanese rival Takeda.

The S&P 500 index rose 9 points, or 0.4 percent, to 2,680. Silver climbed 0.7 percent to $16.70 an ounce. Japan's benchmark Nikkei 225 rose 0.9 percent, helped by the weaker yen. The yields react to supply and demand, rising when prices decline and dropping when the 10-year gets more expensive.

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