Trader Talk
- S&P 500 Down — But Not By Much
- EU Finance Ministers Won't Get Fooled Again
- Why Is Market So 'Tired' With Good News?
- What Exactly Have Greeks Agreed To?
- A Greek Deal, but What Is the Deal?
- No Greek Debt Deal? No Problem! (Maybe)
- Irish Finance Minister Causes Draghi's Worst Nightmare
- Caesars' Wild Open
- Forget the Incredible Shrinking Greek Politicians—It’s Draghi Time!
- Trading Day Has Lots of Moving Parts
TRADER TALK VIDEO GALLERY
TRADER TALK RSS FEED
MOST SHARED
- Greek Debt Saga Back on Center Stage for Markets
- Obama Likely to Call for Cutting Top Corporate Tax Rate
- Special Feature: Wall Street History - How Wall Street Got Its Name
- Obama to Project $901 Billion Budget Deficit in 2013
- Private Homebuilders: Dead Men Walking
- When Love and the Fed Collide
- How to Trade the Turmoil in Greece
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- We're Not Greece: Italian Prime Minister Monti
- LinkedIn CEO Calms Post-Lockup Concerns
- In Search of America's ‘Hottest Forecasters’
- Dow vs. S&P 500: Which is a Better Investment?
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- Avis on the Road to Strong Growth: Analyst
- Private Homebuilders: Dead Men Walking
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- This Valentine’s Day Love Is Served on a Silver Platter
- Greek Cabinet Approves EU, IMF Bailout Bill
- We're Not Greece: Italian Prime Minister Monti
- Private Homebuilders in the US: Dead Men Walking
- Dividend Payout Could Hit Record Amount This Year
- With Investors So Bullish, Stock Pullback Must Be Ahead
- Obama Likely to Call for Cutting Top Corporate Tax Rate
- New York Fashion Week Fall 2012
- NetNet: Why Saving Greece Could Destroy the World
- My Funny Valentine: When Love and the Fed Collide
Stocks Signal 'Worries' Over Higher Interest Rates
Text Size 
Reporter
Stocks dropped as soon as the results of the 10-year auction were announced. The yield of 3.99 percent was at the high end of expectations.
The Treasury is paying a lot more to borrow money; the auction on May 6 yielded 3.19 percent, so the Fed is paying 80 basis points more ... just one month later.
The tenor of stock chatter about higher rates has changed; in mid-May, as rates started to creep up, higher rates were cited as signs of an improving economy.
But the rapidity of the rate hikes in the past month is now generating chatter that this could be a damper on the housing recovery; hence the drop midday.
We are stalled, but the trend is still up. On June 1st, the S&P 500 hit a new high for the year, and since then we have been in a low-volume grind, very much in thrall to the Treasury market. And volatility has continued to drop: The Volatility Index [VIX
Loading...
()
](VIX) is sitting at its post-Lehman low.
This morning, we again knocked on the door of new highs for the year, only to fall back. The problem: the market leadership is very narrowly focused on commodity stocks, with no leadership from financials (not for a month!) or techs (which have been leaders until recently).
Is the rally over, killed by higher rates? Not clear, but stocks are signaling that higher rates are going to be a major headwind.
_____________________________
_____________________________
Questions? Comments?
- Marketing clichés aside, sometimes diamonds are for investing.
- The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
- This list of the 10 most active cities for speed traps was compiled by Trapster.com. See if your town is there.
- This Valentine’s Day should prove a love fest for restaurants, as many couples will be dining out.
- Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
- What kind of homes do celebrity couples share? Here’s our updated list. Take a look.
- S&P 500 Down — But Not By Much
- EU Finance Ministers Won't Get Fooled Again
- Why Is Market So 'Tired' With Good News?
- What Exactly Have Greeks Agreed To?
- A Greek Deal, but What Is the Deal?
- No Greek Debt Deal? No Problem! (Maybe)
- Irish Finance Minister Causes Draghi's Worst Nightmare
- Caesars' Wild Open
- Forget the Incredible Shrinking Greek Politicians—It’s Draghi Time!
- Trading Day Has Lots of Moving Parts
Data is a real-time snapshot *Data is delayed at least 15 minutes
