Rising Treasury Yields Seem To Be Stirring Some Unease In Equity Market

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Rising treasury yields seem to be stirring some unease in the equity market

all up more than 3%. Today looks like a different story as shares of those stocks are trading lower ahead of the open.This earnings season is definitely winding down, but there are still some pretty high-profile companies opening their books. is scheduled to report next week. It could be interesting to see if executives there have anything to say on the recent spike in bond yields and their outlook on interest rates and how that might affect the housing market.

FedEx is also reporting earnings next week. FDX is an important barometer of business activity because all sorts of companies use FDX to deliver goods they make. Investors might want to tune in to see how business deliveries have been doing as the pandemic has continued but economic activity has been picking up. Remember, business deliveries tend to be more profitable, so that side is particularly important for FDX.

Nike is another big bellwether company reporting next week. The athletic shoe and apparel maker has a big footprint in retailing in the United States and abroad, and it has faced declines in physical retail traffic in North America even as it has seen digital sales increase. Nike’s experience is a reminder of how the pandemic has accelerated the trend of more and more retail dollars being spent online.

Another closely watched economic event next week is the Fed’s monthly rate-setting meeting. The central bank isn’t expected to raise rates next week, but investors are likely to still comb its statement and tune into the press conference to try to glean information on policy makers’ thoughts on the inflation situation, especially in light of the recent rise in the 10-year Treasury yield.... [+]

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