Dow Erases 300-Point Lead as 10-Year Treasury Yield Spikes

FOMC members raised their projections for economic growth in the U.S.

Josh Selway

Feb 21, 2018 at 4:29 PM

The Dow was trading comfortably in positive territory all day ahead of the reveal of the Fed's meeting minutes, and upbeat commentary from the central bank on U.S. economic growth initially sent the index soaring more than 300 points after the release. However, stocks pulled back sharply in the final hour of trading, as concerns over rising interest rates sent the 10-year Treasury yield spiking to a four-year high. The turbulent price action hit the S&P 500 and Nasdaq, as well, with the latter index once again failing to capitalize on a strong showing from tech stocks.

Continue reading for more on today's market, including:

Options traders could be missing out on a First Solar stock trading opportunity.
OLED stock is bouncing from a key level before earnings.
History says to buy the Walmart stock dip.
Plus, a fertilizer stock to watch; a software stock for bulls; and unusual options activity on Chesapeake Energy.

The Dow Jones Industrial Average (DJI - 24.797.78) traded in positive territory up until the last hour of trading, with the blue-chip index closing at session lows -- down 167 points, or 0.7%. All but four Dow components closed lower, with United Technologies (UTX) coming in as the top gainer with a 2.2% uptick. Walmart was again the biggest loser, down 2.8% at the close.

The S&P 500 Index (SPX - 2,701.33) dropped 14.9 points, or 0.5%, and the Nasdaq Composite (IXIC - 7,218.23) slipped 16.1 points, or 0.2%.

The Cboe Volatility Index (VIX - 20.02) pared its early losses as stocks fell, but still closed down 0.6 point, or 2.8%.

Closing Indexes Summary Feb 21

NYSE and Nasdaq Stats Feb 21

5 Items on Our Radar Today

The Trump administration suggested it's interested in implementing a mileage tax as a way to generate new revenue for its infrastructure program. In the Economic Report of the President, the White House deemed Oregon a "pioneer" for introducing a similar program. (Reuters)
Staying on the political front, a White House official said President Donald Trump is open to restricting access to guns for certain people. According to the official, the Trump administration feels there's a better chance to pass this type of reform instead of an assault weapon weapon ban. (CNBC)
Mosaic stock continues to draw bullish reviews after earnings.
Scoop up this software stock now.
The unusual options activity ahead of Chesapeake Energy earnings.

Corporate Earnings Feb 21

Unusual Options Activity Feb 21

Data courtesy of Trade-Alert

Gold Prices Rises After Fed Minutes

Oil prices fell today ahead of tomorrow's holiday-delayed update on domestic crude inventories. By the close, April-dated crude was down 11 cents, or 0.2%, at $61.68 per barrel.

April gold futures added 90 cents to settle at $1,332.10 per ounce. However, in after-hours trading, the precious added to these gains following the release of the Fed minutes.

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