This Day On The Street
Continue to site right-arrow
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

Final Hour: Bonds Lead the Way for Equity Bears

Updated from 3 p.m. ET with news from Russia in sixth paragraph.

NEW YORK (TheStreet) -- Heavy falls across U.S. equities on Thursday were more about bond markets dictating sentiment than warnings from a bearish hedge fundie.

U.S. 10-year Treasury yields have shed more than 6% the past three days, touching their lowest level in almost a year on Thursday. This was triggered by fresh speculation of more European stimulus after the eurozone economy grew just 0.2% in the first quarter. The U.S. has done little better with a 0.1% result, though we're blaming the weather for that inning. Here's hoping Yellen will providing soothing commentary after market close: perhaps reassuring that monetary policy will remain accommodative for longer, or something of equal shock value.

In any case, poor economic data has been sufficient impetus for hungry bond buyers, and further fueled by reports that Germany's Bundesbank would support more ECB stimulation.

Hedge fund manager David Tepper was also a help to short-sellers, warning investors at a Las Vegas gathering Wednesday, "The market is kind of dangerous right now" and noting on the global outlook, "The ECB better ease in June, I'm nervous."

If the ECB does ease, then U.S. markets will get a boost. But don't get too excited -- look how far we've already come. We might touch new highs again short term, but see what happens when the breadth ain't there? Those records this week, it all seems so long ago...

In late breaking news: Russian President Vladimir Putin has said the country will only deliver gas to Ukraine if it pays in advance in cash, starting from June. Seems those IMF funds will be put to good use. 

Closer to home, the retailers aren't helping sentiment. Walmart (WMT - Get Report) and Kohl's (KSS - Get Report) disappointed on earnings, with low expectations for J.C. Penney (JCP - Get Report). And other bellwethers of risk sentiment are also lower, with tech stocks and small caps suffering - the Russell 2000 just a few points off official correction territory.

-- By Jane Searle in New York

>>Read More:

How to Profit from the Coming Flood of Emerging Market Consumers 

Geithner's Most Candid Crisis Moments as Told to Jim Cramer

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!
KSS $78.16 0.00%
JCP $8.90 0.00%
WMT $80.71 0.00%
AAPL $124.25 0.00%
FB $81.66 0.00%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs