The major market averages moved up on Tuesday morning along with yields, a day after major market averages jumped following a heavy dose of selling last week, helped by a rise in tech stocks.
Early on and the Nasdaq Composite (COMP:IND) was +0.4%, the S&P 500 (SP500) was +0.4%, and the Dow (DJI) was +0.3%.
The 10-year Treasury yield (US10Y) rose 3 basis points to 4.64%. The 2-year yield (US2Y) rose 2 basis points to 4.99%.
The U.S. will auction off $69B of new 2-year Notes this afternoon.
“While the Magnificent 7 were up +0.94% yesterday, Tesla (TSLA) was down -3.40%, extending its decline this year to -42.8% and having halved since last July. It’s maybe a slight warning for the darlings of the current AI boom that things can change quickly if profits don’t follow very high expectations as new technologies grow,” Deutsche Bank’s Jim Reid said.
Markets had their best performance in some time yesterday, as investors became a bit more optimistic about the near-term outlook, Reid said.
“Adding to the positive sentiment were growing hopes that a further escalation in the Middle East would be avoided.”
On Monday, the major market averages recovered ground after last week, as all of the 11 S&P segments finished higher with Financials and Info Tech at the top of the leaderboard. The S&P 500 also snapped its six-day losing streak.
On the economic front, the April S&P Global U.S. Manufacturing PMI is due shortly, with economists expecting a marginal rise to 52.
“U.S. economy-watchers are never short of indicators to track, but a strong case now can be made for paying close attention to S&P Global’s PMI survey,” said Pantheon Macroeconomics.
S&P’s PMI is too unreliable a guide to GDP to be useful, but its soft inflation signal should be taken seriously. Pantheon Macro added.
The new home sales report for March, which is due at 10:00 am ET, is forecasted to show a rise to a rate of 668K.
The April Richmond Manufacturing Index is also slated to land at the same time, and is expected to come at -7.
On the earnings front, bigwigs such as Tesla (TSLA) Philip Morris International (PM), General Electric (GE), Visa (V), General Motors Company (GM), Lockheed Martin (LMT), Freeport-McMoRan (FCX) and more, are expected to report today.
