U.S. stocks moved broadly lower in early trading Tuesday, led by declines in technology, health care and consumer-focused companies. The slide put the Dow Jones industrial average on track to end an eight-day winning streak. Bond prices fell, sending yields to the highest level since 2011, after the government reported a solid increase in U.S. retail sales last month.
KEEPING SCORE: The S&P 500 index fell 25 points, or 0.9 percent, to 2,705 as of 10:02 a.m. Eastern Time. The Dow lost 215 points, or 0.9 percent, to 24,683. The Nasdaq composite dropped 87 points, or 1.2 percent, to 7,323. The Russell 2000 index of smaller-company stocks gave up 6 points, or 0.4 percent, to 1,593.
BOND YIELDS: Bond prices fell. The yield on the 10-year Treasury rose to 3.06 percent from 3 percent late Monday. That’s the highest level since 2011 for the yield, which is used to set interest rates on mortgages and other kinds of loans. The surge came after the Commerce Department said retail sales climbed 0.3 percent in April, suggesting that spending by consumers is rebounding as expected after a weak first quarter.
The rise in bond yields helped lift shares in banks, which benefit from higher interest rates on loans. Capital One Financial gained 1.5 percent to $94.57.
TECH TUMBLES: A slide in technology stocks weighed on the market. Alliance Data Systems was down 2.6 percent to $53.78.
WINTER BLUES: Home Depot dropped 1.7 percent to $187.84 after the home-improvement retailer reported weaker-than-expected sales, partly because of inclement weather.
READY TO SHOP: Some retailers got a boost from the retail latest retail sales data. Bed Bath & Beyond rose 1.5 percent to $17.33. Ulta Beauty added 0.5 percent to $248.34.
ENERGY: Benchmark U.S. crude oil gained 8 cents to $71.04 a barrel in New York. Brent crude, used to price international oil, rose 15 cents to $78.38 a barrel in London.
CURRENCIES: The dollar rose to 110.31 yen from 109.66 yen late Monday. The euro weakened to $1.1839 from $1.1944.
METALS: Gold fell $23, or 1.7 percent, to $1,295.20 an ounce.
MARKETS OVERSEAS: In Europe, Germany’s DAX fell 0.2 percent after new data showed the country’s economy slowed in the first quarter. France’s CAC 40 inched up 0.1 percent. Britain’sFTSE 100 added 0.1 percent. In Asia, Japan’s benchmark Nikkei 225 edged down 0.2 percent. Australia’s S&P/ASX 200 lost 0.6 percent. South Korea’s Kospi slipped 0.7 percent. Hong Kong’s Hang Seng dropped 1.2 percent.
This article provided by NewsEdge.