U.S. stocks close lower amid rising Treasury yield

U.S. stocks close lower amid rising Treasury yield

Treasuries were a key factor for the market Tuesday as investors watched 10-year Treasury yields climb to 3.08%. Homebuilders fell sharply as a result.

Australian stocks bucked the region's downward trend, rising 0.4%.

All 11 S&P sectors are lower, with trading tech (-1.2%), telecom services (-1.2%), real estate (-1.1%) and consumer discretionary (-1%) the worst performers; financials and energy are the strongest groups but are still down 0.1% and 0.4%, respectively.

The S&P 500 is down 16.27 points, or 0.6 percent. The Nasdaq Composite Index was down 59.69 points, or 0.81 percent, to 7,351.63. Smaller rival Lowe's Companies Inc was down 1.0%.

Stocks are moving mostly lower in midday trading on Wall Street, led by technology and health care companies.

The prospect of higher mortgage rates weighed on home builders, while the rise in bond yields sent stocks that pay high dividends lower.

In Asia, shares declined on Wednesday in morning session after North Korea pulled out of high-level talks with Seoul and as US Treasury yields rose to the highest level in seven years overnight. Gold fell $27.90, or 2.1 percent, to $1,290.30 an ounce.

The declines Tuesday put the Dow Jones industrial average on track to end an eight-day winning streak.

Retail sales reported a monthly increase of 0.3%. At 3.08% earlier today, it was the highest yield since July 2011. The S&P 500 index fell 18.69 points, or 0.7% to 2,711.44.

The Dow is down 124.76 points, or 0.5 percent. The Nasdaq is up 4 percent.

Stocks struggled to a mixed finish on Wall Street as weakness in smaller-company stocks offset gains in large companies.

Bond prices fell, sending yields higher, after the government reported a solid increase in US retail sales last month. Mortgage rates, which have been rising this year, tend to track the movement in the 10-year Treasury yield. That yield is used to set interest rates on mortgages and other kinds of loans.

The Dow Jones industrial average lost 162 points, or 0.6 percent, to 24,739.

Viacom slumped 6 percent and CBS rose 4 percent after CBS sued to block efforts to force the company combine with Viacom.

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