Small Caps, Tech Stocks Slammed Amid Plunging Bond Yields; Verizon Leads Dow Jones
Major stock indexes were sharply lower Friday afternoon as bond yields fell sharply gain. The 10-year Treasury yield fell another 9 basis points to 2.45%, fanning fears of an inverted yield curve. The spread between the 2-year yield and the 10-year yield is about 12 basis points. A few top stocks bucked the trend, including Darden Restaurants (DRI), IBD 50 stock Kirkland Lake Gold (KL) and Dow Jones stock Verizon (VZ).
Small caps got slammed as the Russell 2000 slumped more than 3%. The Nasdaq composite lost 2%; the S&P 500 fell 1.6% and the Dow Jones Industrial Average slipped around 1.4%. Volume on the NYSE and Nasdaq was tracking higher than Thursday’s levels in the stock market today. (For updates on this story and other market coverage, visit the Stock Market Today page.)
Weak manufacturing data out of Europe also weighed.
Top Stocks In The Dow Jones Today
Verizon outperformed in the Dow Jones, rising more than 1%. It’s been working its way higher in recent weeks and is only 4% off its high. Coca-Cola (KO), which currently yields 3.5%, rose 1%, but it’s entrenched below its 200-day moving average.
Boeing (BA) stock lagged again in the Dow Jones today, hurt by news that Garuda Indonesia is canceling a large order for Boeing 737 Max jets. Shares fell 2% to 364 as the stock nears a test of the 200-day moving average, a longer-term support level. Boeing’s 200-day line is currently around 359.
Nike (NKE) stock fared the worst in the Dow, falling 6%, after the company reported earnings late Thursday.
Growth Stocks, Financials Hit Hard
Leading growth stocks were under pressure as Innovator IBD 50 ETF (FFTY) lost 2.7%. Plunging bond yields hurt the cause of financial stocks as Financial Select Sector SPDR ETF (XLF) gave back 3%.
Superregional banks got kicked around gain. Big decliners in the group included SVB Financial (SIVB), Regions Financial (RF) and KeyCorp (KEY), with losses of 6% to 8%.
Kirkland Lake Gold was one of the top stocks in the IBD 50. It’s getting support at its 10-week moving average for the first time after a breakout from a base in December.
In other stock market news, Darden Restaurants (DRI) followed through after Thursday’s breakout, rising 1.4% to 117.77. It topped a 113.48 buy point and is still inside the 5% buy zone.
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