This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Quick Take: Stocks and Yields Move Higher

NEW YORK ( TheStreet) -- Markets have moved slightly higher, but overall haven't reacted to much of Thursday's economic news. Albert Fried's Ben Willis is with TheStreet's Debra Borchardt, discussing the latest market action.

Willis said high-frequency traders initially reacted to some of today's news, but largely quieted down near midday.

He added that investors should watch the yield on 10-year Treasuries, especially ahead of the nonfarm payrolls report for August, set to be released tomorrow morning.

As yields continue to rise, money keeps pouring out of bond funds and into money market accounts. Willis went on to say that the money is working its way slowly into the equity markets, but general investors take a long time to transition.

Bond investors are used to seeing their statements show slow, but steady, incremental moves higher. But with yields shooting up, those balances have actually begun to drop, showing losses for some investors.

He added that this will likely come as a shock to many, since most of them originally flocked to bonds as a safe haven.

While the numbers haven't been great, rates are still at generational lows. Willis concluded that the economy will function "just fine" with a 5% mortgage rate, but it will take time for the public to adjust.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%
YHOO $44.52 1.89%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs