Trader Talk

Published: Wednesday, 27 May 2009 | 4:52 PM ET

Text Size

This post was written by CNBC producer Robert Hum.

After trading in a tight range during the morning, stocks fell abruptly in the mid-afternoon and closed essentially at the lows of the day – giving back much of yesterday’s gains.

Putting pressure on the equity markets was the sell-off in 10-year Treasury notes, pushing yields over 3.70 percent to a 6-month high. Investors fear that higher interest rates could slow an economy recovery since lower rates are a key to keeping borrowing costs low.

While the mid-afternoon drop was fairly broad-based, declines in financials, materials, and industrial stocks led the way. Just like yesterday though, volume at the Big Board was light.

What Does $1 Trillion Look Like? Companies at Greatest Risk For Default The Highest Paid Chief Executives Surprising Stock Market Indicators

After the bell, shares of fabric retailer Jo-Ann Stores

JAS loading...

Quote  |  Chart  |  News  |  Profile

[JAS  Loading...      ()   ] trade up 3 percent after reporting Q1 earnings nearly triple the Street’s estimate of 11 cents per share. The company’s bottom line was boosted by a 2.1 percentage point improvement in margins and a 1 percent rise in same-store stores. Full-year earnings guidance of 70 cents to 85 cents is reaffirmed, but that falls shy of expectations of 90 cents.

Traders will have their eyes on a slew of economic data tomorrow morning, as durable goods, weekly jobless claims, and new home sales reports are expected.

_____________________________

• The Dow 30 in Real Time
• The CNBC Stock Blog

_____________________________

Questions?  Comments? 

Print

Email

Text Size