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Market Pulse

Feb. 8, 2022, 9:48 a.m. EST

Dow climbs 110 points, but broader stock market wavers Tuesday as 10-year yield nears 2%

By Mark DeCambre

U.S. stocks opened Tuesday trading mixed, with the Dow industrials rising on the back of early moves in Amgen Inc. (NAS:AMGN) and Goldman Sachs (NYS:GS) .

Equity indexes, however, continued to confront friction against the prospect of rising interest rates for benchmark debt, with the 10-year Treasury note (XTUP:BX:TMUBMUSD10Y) at around 1.96%, around its highest yield since 2019. Rising yields are a weight on valuations for speculative and growth-oriented stocks, which are being rerated for tighter monetary policy and higher borrowing costs.

  • The Dow Jones Industrial Average (DOW:DJIA) was trading 82 points, or 0.2%, higher at around 35,182.

  • The S&P 500 index (S&P:SPX) was trading 0.1% lower, weighed by declines in consumer discretionary (S&P:XX:SP500.25) , energy (S&P:XX:SP500.10) and health care (S&P:XX:SP500.35) , despite the rise in Amgen.

  • The Nasdaq Composite Index (NASDAQ:COMP) was trading less than 0.1% lower at 14,004.

In other corporate news, investors were focused on shares of exercise equipment maker Peloton Interactive (NAS:PTON) , which was after it said it would replace its chief executive, overhaul its board and cut costs, including lay off 2,800 employees. Shares of Pfizer Inc . (NYS:PFE) were lower, weighing on the health sector, after the drug maker reported fourth-quarter profit that beat expectations, while revenue more than doubled but missed forecasts.

In economic data, the U.S. trade deficit jumped 27% in 2021 to a record $859 billion largely because a recovering economy gave Americans the means to buy more imports. They also paid higher prices due to rising inflation.

The deficit widened in December by 1.8% to $80.7 billion, marking it the second largest monthly increase ever. Economists polled by The Wall Street Journal had forecast a $82.9 billion shortfall.

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