High yield bond market news

Source: Reuters Indian bond yields rose further on Thursday, tracking an uptick in global crude oil prices, while expectations of a March rate increase by the US Federal Reserve were reaffirmed by comments from its chairman, pushing up US yields. Oil prices extended their rally, with Brent rising above $118 a barrel as trade disruption and shipping issues from Russian sanctions over the Ukraine crisis sparked supply worries, while US crude stocks fell to multi-year lows. "Directionally, yields are likely to edge higher from here. Even if the geopolitical situation stabilises, we have the inflation impact and Fed rate hikes likely soon after," a senior trader at a private bank said. India's benchmark 10-year bond yield was at 6.83 percent at 0555 GMT, after earlier rising to 6.85 percent, its highest since February 4. It had closed at 6.81 percent on Wednesday. Traders said with oil marketing companies yet to on-pass the recent increases in global crude oil prices to … [Read more...] about Indian 10-year bond yield at 1-month high tracking global crude, US peers

Battered U.S. stocks are facing a potentially painful stretch in the weeks ahead, as hawkish Federal Reserve policy, rising bond yields, geopolitical uncertainty and the corporate earnings season fuel investor unease. After last week’s sharp decline, the S&P is down 5.7% so far in April and is on track for its worst monthly drop since March 2020, when the spreading COVID-19 pandemic blasted stocks. One measure of investor anxiety, the Cboe Volatility Index, known as Wall Street’s fear gauge, on Friday notched its largest one-day gain in about five months to close at a five-week high of 28.21. “More variables in any equation create greater uncertainty in terms of the outcome,” said Michael Farr, president of Farr, Miller & Washington. “We have more variables now than I can remember in my career.” Chief among market participants' worries is a Fed that has repeatedly ratcheted up its hawkish rhetoric as it gears up to fight the worst U.S. inflation in nearly 40 … [Read more...] about Bruised Wall Street faces gauntlet of worries after market tumble

U.S. equity markets are mixed following strong earnings from Amazon.com, Inc. ( AMZN ) that lifted the Nasdaq while a blowout jobs report pushed bond yields higher by fueling fears of bigger interest rate hikes by the Federal Reserve. Key Takeaways Tech shares are rising, boosted by Amazon and Snap, as the Nasdaq aims for its first weekly gain this year. A blowout jobs report pushed bond yields higher by fueling fears of bigger interest rate hikes by the Federal Reserve. Crude oil's price surge continued, with the price crossing $93 per barrel. The Nasdaq , helped by Snap Inc. ( SNAP ) and Amazon, is set for its first weekly close higher this year. The S&P 500 is also higher, while the Dow Jones is little changed. The yield on the 10-year Treasury note is skyrocketing nine basis points (BPS) to 1.92% after the Labor Department reported that many more jobs were created in January than expected (more below). That's prompting speculation that … [Read more...] about Markets Mixed as Amazon, Snap Fuel Tech, Dow Drops on Rate Worries

U.S. equity markets are continuing their rally as solid corporate earnings boost investor optimism. Chipotle Mexican Grill, Inc. ( CMG ) and Yum! Brands, Inc. ( YUM ) gained, as the Dow and Nasdaq are both up about 200 points. Key Takeaways U.S. stocks are higher, with the Nasdaq and S&P 500 each gaining more than 1% as solid corporate earnings boost investors' confidence. Investors are awaiting an earnings report from The Walt Disney Company ( DIS ). Crude oil reversed its earlier decline and is back above $90 per barrel. Bond yields declined. Better-than-expected financial reports from restaurant chains Chipotle and Yum!, along with food sciences firm FMC Corporation ( FMC ), are sending their shares higher. Shares are rising for media companies after Omnicom Group Inc. ( OMC ) reported profit that beat forecasts, and its shares are trading near all-time highs. Tech stocks are powering the Nasdaq's 1.5% gain. Meta Platforms, Inc. ( FB) shares … [Read more...] about U.S. Stock Surge Continues as Chipotle, Tech Shares Drive Gain

Shares of Peloton Interactive Inc. ( PTON ) are skyrocketing after the connected exercise company announced a major restructuring. The stock is up nearly 30% as of Tuesday afternoon. Currently trading around $38, the company is still down more than 70% in the last year. U.S. equity markets as a whole are decisively higher after wavering this morning, led by tech and small-cap stocks, with the Nasdaq up more than 1% and the Dow Jones not far behind. Shares of Harley-Davidson ( HOG ) are up nearly 15% this morning after the company posted better-than-expected revenue and earnings. Analysts expected a loss of 38 cents per share; instead, Harley-Davidson reported a gain of 14 cents per share, thanks in part to increased demand for one of its more expensive motorcycle models. Key Takeaways The Dow Jones, S&P 500 and Nasdaq are all higher after wavering earlier. Amgen and Peloton are both helping lead markets higher, as are small-cap stocks as measured by the Russell … [Read more...] about Stocks Rally as Amgen, Peloton, Travel Companies Push Markets Higher

U.S. equity markets are dropping to begin the new week, led lower by shares of Facebook parent Meta Platforms Inc. ( FB ) and other tech stocks. Key Takeaways Tech stocks, led by Facebook parent Meta Platforms, Google parent Alphabet, and Apple, declined, pushing markets lower. Spirit Airlines rose after it agreed to be bought for $6.6 billion by Frontier, creating the fifth largest U.S. carrier. Bond yields advanced past 1.9% and crude oil slipped after last week's gains. Meta shares are 5% lower, adding to steep losses that erased more than a quarter of the company's market value after the company last week said that it had lost daily active users for the first time. Apple Inc. ( AAPL ), Microsoft Corp. ( MSFT ) and Google parent Alphabet Inc. ( GOOG ) all fell. Hasbro ( HAS ) shares are falling on its earnings report. Shares of Verizon Communications Inc. ( VZ ) are down as the company announced it would now only offer three-year phone contracts. … [Read more...] about Tech Stocks Drop, Sending Markets Lower, as Meta Shares Fall Further

Semiconductor stocks have had an interesting two days. On Thursday, seemingly the entire industry moved higher in anticipation of a strong earnings announcement from Intel Corporation ( INTC ) after the closing bell. Unfortunately, that did not happen. Intel missed revenue estimates by $360 million and GAAP earnings estimates by $0.04 per share – coming in at $18.66 billion and $1.12 per share, respectively. As a result of the miss, Intel shares plunged lower in trading on Friday, dropping 5.47% to close at $47.04. Interestingly, the rest of the industry kept right on climbing higher. Micron Technology, Inc. ( MU ) jumped 6.48%, Advanced Micro Devices, Inc. ( AMD ) rose 5.18%, Xilinx, Inc. ( XLNX ) bounced 4.06% and Qorvo, Inc. ( QRVO ) climbed 3.76%. These bullish moves indicate that traders are confident enough in the sustained strength of the global economy and the potential of a softening in trade talks between the United States and China to shrug off the … [Read more...] about Shutdown News and FOMC Speculation Lift Stocks

According to Prof Jayanth R Varma, the steep yield curve is a sign that the market has confidence that the central bank will raise interest rates. India’s yield curve, which captures the long-term risk sentiment in the economy, is steep. In fact, it is at its steepest incline in history–the difference between the policy rate of 4.40% and 10-year G-Sec of 7.4% (approx) is 300 bps. It can impact long-term investment and therefore economic recovery , since companies plan their capex around the long-term interest rates. So why is the long-term rate rising so significantly more than the short-term one? Is it a sign of lack of confidence in the central bank to contain inflation? Jayanth R Varma, member of the Monetary Policy Committee, who had often been critical of the central bank’s accommodative stance saying that it can affect its inflation-fighting credibility, said that the steep yield curve is actually a vote of confidence in the RBI. “It is not a question about … [Read more...] about India’s steep yield curve is a concern for private capex, says Prof Jayanth Varma

Indian stocks remained under selling pressure for the second consecutive week and lost nearly 4 percent amid high volatility. Weak global markets, continued FIIs selling, soaring inflation, rising bond yields and expectations of further monetary tightening by the global Central Banks remained big concerns for investors. For the week, BSE Sensex declined 2,041.96 points (3.72 percent) to close at 52,793.62, while the Nifty50 shed 629.05 points (3.83 percent) to end at 15,782.20 levels. In the month of May so far, Sensex and Nifty have lost more than 7 percent each. During the week gone by, all the sectoral indices ended in the red with BSE Metal and Power indices falling 13 percent each. BSE Telecom index shed 6.7 percent and Realty index declined 5.8 percent. In broader market, the BSE Mid-cap index lost 5.6 percent, Small-cap index shed 6.5 percent and Large-cap Index declined 4.4 percent. “Monday’s session started on a nervous note as global sentiments remained nervous … [Read more...] about More than 250 smallcaps witness double digit fall as market tanks nearly 4%

Stocks fell further this afternoon as the Fed's James Bullard said he'd like to see rates a full percentage point higher by July. Bullard backs at least a half-point hike on the way to a full point gain before July, the Federal Reserve Bank of St. Louis president told Bloomberg News in an interview today. Bullard votes on monetary policy. Key Takeaways Stocks fell further this afternoon as the Fed's James Bullard said he'd like to see rates a full percentage point higher by July. Stocks had been pulling back from the morning's steep declines as strong corporate earnings from Walt Disney and Mattel partially offset stronger-than-expected inflation data. The Consumer Price Index report released today revealed an annual inflation rate of 7.5%, higher than expected and the largest increase in 40 years. Bond yields rose to their highest since July 2019. Today's Market Movers Stocks had pulled back from the morning's steep declines, with some indexes moving … [Read more...] about Stocks’ Decline Steepens on Bullard’s Rate Hike Comments, Inflation Data