USA stocks opened lower on Tuesday, hurt by a rise in bond yields and disappointing quarterly results from Walmart.
The Standard & Poor's 500 index fell 5 points, or 0.2 percent, to 2,726. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. The S&P 500 fell 0.1% and was trying to hold above the 50-day moving average.
US Treasuries declined amid a flood of government debt auctions this week, sending the yield on the 10-year note three basis points higher to 2.90 percent, while the 2-year yield also added three basis points to 2.22 percent, the highest since 2008, according to Bloomberg.
DRUGSTORE BUY: Rite Aid rose 2.6 percent after grocery store operator Albertsons agreed to buy more than 2,500 of its stores.
In addition to consumer staples, the utilities, telecom services, health care, industrials and real estate groups finished with losses of at least 1%; on the flip side, the tech sector (+0.3%) was strongest, with chipmakers showing particular strength as Qualcomm raised its bid for NXP Semiconductors to $127.50/share from $110 in an attempt to fend off a competing offer from Broadcom.
"We still believe Walmart has more work to do to widen its e-commerce customer base", GlobalData Retail Managing Director Neil Saunders said in response to Tuesday's earnings report, CNBC reported.
Walmart plunged 9 percent, dragging other retailers down with it, after reporting a disappointing quarter and weaker online sales than investors were expecting.
The yield on the 10-year Treasury, which is used as a benchmark for mortgages and other loans, has been rising in recent months from a low of 2.04 percent in September. The Russell 2000 index of smaller-company stocks gave up 0.9 percent, to 1,529.99. Shares are almost 6% below the entry and the break of the 50-day line should cause investors who bought near 100.23 to consider cutting losses short.
Benchmark U.S. crude rose 22 cents to settle at $61.90 per barrel in NY. Brent crude, used to price global oils, shed 42 cents to close at $65.25 a barrel.
The dollar rose to 107.30 yen from 106.55 yen on Friday. The euro edged lower to $1.2335 from $1.2337.
Home Depot (HD.N) edged down 0.14 percent after the largest US home improvement chain's quarterly profit beat market estimates in an improving housing market.
ENERGY: Benchmark U.S. crude fell 47 cents to $61.32 per barrel in electronic trading on the New York Mercantile Exchange. Trading was closed Monday for Presidents Day. Early Wednesday it was at 2.90 percent.