Stocks slide as Treasury yields keep climbing; financials far out in front

|By:, SA News Editor

Stocks open lower, extending yesterday's late weakness sparked by a selloff in U.S. Treasury bonds that pushed yields to multi-year highs; Dow -0.3%, S&P -0.4%, Nasdaq -0.7%.

The yield on the benchmark 10-year note hit 3.23% overnight and has since come down to 3.18%, but that's 2 bps above yesterday's close and its highest level in more than seven years.

This morning, investors received a roughly in-line weekly initial jobless claims report; August factory orders will be released at 10 a.m. ET.

European markets are mixed, with Germany's DAX +0.4% but U.K.'s FTSE -0.8% and France's CAC -1%; in Asia, Japan's Nikkei -0.6% while China's Shanghai Composite is closed for the week.

In U.S. corporate news, Barnes & Noble +27% on news that multiple parties have expressed interest in acquiring the company, and Eli Lilly +5% after its experimental diabetes drug showed promise in clinical trials.

The financial sector (+1%), which tends to move in tandem with interest rates, is the only sector showing any significant gain so far; tech (-0.9%) and communication services (-1.1%) are the worst performers.

U.S. WTI crude oil futures -1.1% at $75.56/bbl.

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