It was all about treasury yields on Wednesday taking the attention away from the trade spat between China and the US. We saw the yield on the US-10 Year notes climb to a high of 3.0905% before retreating to 3.0626% and on the US-2 Year notes closed at 2.2902%. Investors digested the news through an increased sentiment regarding higher interest rates which boosted stocks. The Dow climbed 0.61% and the S&P 500 rose 0.13% whilst the tech heavy Nasdaq fell 0.08%.
Financial stocks benefited the most from this higher interest rate sentiment and higher yields as Goldman Sachs shares rose 2.92% being the best performer on the Dow supported by a 2.90% rise in JPMorgan shares. On the other side of the market the so called defensive sector utilities fell sharply as the S&P 500 sector declined 2.13% as investors considered an alternative to higher risk equities.
The technology sector that has been caught in the headlines lately edged 0.1% lower weighed down by a 1.3% fall in Microsoft, following negative commentary from Morgan Stanley. Amazon shares slid 0.75% following European Union regulators looked into whether the company was using merchant date to stifle competition.
Tilray shares skyrocketed 38.12% higher trading at a high of $300.00 and closing at $214.06 after trading was halted several times due to the increased volatility. To put things in perspective the stock was trading at $22.93 on the 1st of August after listing in July 2018 at $17 per share. On Tuesday the stock gained after the U.S. Drug Enforcement Administration approved medical cannabis imports for use in medical testing. Yesterday the wild price swings were a combination of CEO Brendan Kennedy’s appearance on CNBC’s Mad Money hosted by Jim Cramer along with the DOJ approval. In the after-market the stock declined as much as 16%.
Moving away from equities the U.S dollar edged lower against the Euro and Australian dollar. The euro was as much as 0.14% higher against the US dollar currently trading at 1.1671 and the Australian dollar was as much as 0.69% higher currently trading at 0.7258. Oil prices rose as WTI crude settled up 1.8%, at $71.12 a barrel and Brent crude also rose higher by 0.5% closing at $79.40 a barrel.
Chart of the Day: JPMorgan Chase (JPM) Daily Chart