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US stocks close down on tech weakness, rising bond yields

Last updated: 16:15 02 Mar 2021 EST, First published: 07:45 02 Mar 2021 EST

Deutsche Bank -

4:05pm: US equities tumble on tech loses 

US stocks closed down as the market gave back some of the strong gains from the previous session with tech stocks leading the way. 

On the day, the Dow Jones Industrial Average fell 143 points, or 0.46%, to 31,391. The S&P 500 dropped 0.81% to 3,870 and the tech-heavy Nasdaq declined 1.69% to 13,358.

12.15pm: US stocks lagging

US benchmarks were in the red at lunch as rising bond yields continue to put traders off buying into equities, despite rising optimism over economic recovery

The Dow Jones Industrial Average fell 53 points at 31,482. The S&P 500 lost around 16 points at 4,885. The tech-heavy Nasdaq index was down around 138 at 13,450.

Bond yields and central banking policy remain a concerns for global investors. Bond yields in other countries have  also climbed in 2021, though not as much as in the USA.

Among companies in focus om Tuesday  was retailer Target Corp (NYSE:TGT), whose shares lagged 4.65% at $177.48, despite posting solid fourth quarter results.

"Revenue increased by 21% on the year to $28.34 billion, ahead of the $27.48 billion consensus estimate," noted David Madden, at CMC Markets.

"EPS was $2.67, beating the $2.54 forecast. Comparable sales rose by 20.5% and that topped expectations."

The analyst said retailers like Target performed well amid the pandemic as it was permitted to remain open and it already had a well-established e-commerce operation.

"The US government has done a lot to assist the economy. In late December, the Trump administration signed off on a $900 billion relief package, which included stimulus cheques of $600. In January, US retail sales rose by an impressive 5.3%. Judging by Target’s update, it seems that Americans were happy to go out and spend their government cheques," added Madden

11.25am: Proactive North America headlines:

Tartisan Nickel Corp (CSE:TN) (OTCMKTS:TTSRF) (FRA:8TA) poised for geophysical survey at flagship Kenbridge nickel-copper-cobalt project

Psyched Wellness Ltd (CSE:PSYC) (OTCQB:PSYCF) (FRA:5U9) says it received 'positive' results from its Maximum Tolerated Dosage study of AME-1

Medexus Pharmaceuticals Inc (CVE:MDP) (OTCQX:MEDXF) (FRA:P731) doubles fiscal 3Q revenue to record C$31.5M

Q BioMed Inc (OTCQB:QBIO) announces five year contract with the US Department of Defense and Veterans Affairs for its cancer bone pain drug

Delta 9 Cannabis  Inc (TSE:DN) (OTCQX:VRNDF) (FRA:V5D1) achieves final services milestone in support of partner F1NE Cannabis Cultivation’s micro cultivation licenses

Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) looks ahead to "rapid growth" following two transformative acquisitions; ends 3Q with $7.6M cash

PlantX Life Inc's (CSE:VEGA) (FRA:WNT1) (OTCQB:PLTXF)  interim unaudited 3Q results show a triple-digit increase in gross revenue

O3 Mining Inc (CVE:OIII) (OTCMKTS:OIIIF) on the hunt to uncover more resources as it announces 250,000m drilling plan for its Québec assets

Cardiol Therapeutics Inc (TSE:CRDL) (OTCQX:CRTPF) (FSE:CT9)  files application to list on the Nasdaq stock exchange

Numinus Wellness Inc (CVE:NUMI)  says making good progress in its compassionate access study of psilocybin-assisted motivational enhancement therapy

One World Lithium Inc (CSE:OWLI) (OTCMKTS:OWRDF)  closes oversubscribed financing raising C$2.25 million primarily for Salar del Diablo advancement

CleanSpark Inc (NASDAQ:CLSK) to add 2,500 more Bitcoin mining rigs and expand operations

Nextleaf Solutions Ltd (CSE:OILS) (OTCQB:OILFF) sees record unaudited revenue in 1Q as it continues to see demand for extraction and distillation services

Falcon Gold Corp (CVE:FG) (OTCPINK:FGLDF) discovers a new high-grade gold vein at its Central Canada gold mine project in Ontario

Co-Diagnostics Inc (NASDAQ:CODX) designs at-home coronavirus PCR saliva test delivering results by smartphone app

HealthLynked Corp (OTCQB:HLYK) receives $2 million equity investment from Naples, Florida family office

Milestone Scientific Inc (NYSEAMERICAN:MLSS) starts selling CompuFlo/CathCheck disposables to the Medical University of South Carolina

Biocept Inc (NASDAQ:BIOC) strikes supply agreement with Aegea Biotechnologies for co-developed ultra-sensitive coronavirus detection test

VR Resources Ltd (CVE:VRR) (OTCQB:VRRCF) (FRA:5VR) says drilling now underway at Reveille silver-copper project in Nevada

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) inks deal to acquire strategic interest in three North American battery metals projects

BioLargo Inc (OTCQB:BLGO) eliminates $650,000 in debt as part of strategic plan to slash costly interest expenses

KULR Technology Group Inc (OTCQB:KULR) h appoints “seasoned executive” Morio Kurosaki to its board of directors

LexaGene Holdings Inc, (CVE:LXG) (OTCQB:LXXGF) ssays it has received approximately C$3.6M (US$2.9M) in warrant exercises since the start of 2021

Heritage Cannabis  Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) generates FY2020 revenue of $9.3M on third-party contract sales

TechX Technologies  Inc (CSE:TECX) (OTCMKTS:TECXF) (FRA:C0B:FF) signs LOI that could lead to potential acquisition of all outstanding share capital of Xport Digital Limited

NexTech AR Solutions Corp (OTCQB:NEXCF) (NEO:NTAR) (CSE:NTAR) (FRA:N29)launches 3D augmented reality ad network to usher in a new generation of ads

Elys Game Technology Corp (NASDAQ:ELYS) (NEO:ELYS) comments on the status of legislation, Bills C-218 and C-13, to legalize single-event sports betting in Canada

GlobeX Data  Ltd (CSE:SWIS) (OTCQB:SWISF) (FRA:GDT) prepares for global mass market launch of Sekur communications solution in April this year

DGTL Holdings Inc (CVE:DGTL) (OTCQB:DGTHF) (FRA:A2QB0L)  engages leading software engineering firm to develop a version 2.0 of wholly-owned subsidiary, Hashoff's social media CMS product suite

PlantX Lifes Inc's (CSE:VEGA) (FRA:WNT1) (OTCQB:PLTXF) interim unaudited 3Q results show a triple-digit increase in gross revenue

Energy Fuels Inc (NYSEAMERICAN:UUUU) (TSE:EFR) signs deal with Neo Performance Materials to launch rare earths production program in US and Europe

10.15am: US stocks start mixed

US benchmarks started mixed on Tuesday as traders were not sure which way to turn after yesterday's rally.

The Dow Jones Industrial Average added over 26 points at 31,561, while the S&P 500 shed around six points at 3,895. The Nasdaq shed over 70 to 13,518.

On Monday, Wall Street shares posted the best daily gains in months as global bond yields stopped rising as they have been recently.

On the agenda today is more Fed talk with the US central bank's governor Lael Brainard slated to speak at 1pm ET and San Francisco Fed president Mary Daly due to talk an hour later.

Michael Hewson, chief market analyst at CMC Markets, said: "The most notable will be permanent Fed board member Lael Brainard whose comments last week almost played down market concerns about the sharp moves higher in long term yields.

"Given recent volatility markets will be looking for a much stronger pushback lest the US central bank loses control of market expectations."

7.45am: US stocks set to take a breath

US stocks looked set to take a breather on Tuesday, with futures edging lower after a strong rebound on Monday following the recent volatility in both bond and equity markets.

Futures for the Dow Jones Industrials Average were down 65 points, or 0.21%, while S&P 500 futures slipped 0.33%, and Nasdaq-100 futures were off 0.36%.

The S&P 500 posted its biggest gain for nine months on Monday as markets cheered US approval of a third coronavirus (COVID-19) vaccine and the House of Representatives green lit a $1.9 trillion coronavirus relief package.

The focus is currently, however, on US central bank officials for clues as to how monetary policy may shift as the recovery takes hold which will determine the appetite for government bonds. Federal Reserve governor Lael Brainard will speak at another event on Tuesday, although in a speech on Monday, she failed to address the issue.

Fed officials have so far suggested the climb in yields reflects expectations for an economic recovery as the COVID-19 pandemic threat eases with the vaccination program and President Biden’s new economic stimulus package.

The Federal Reserve has injected plenty of cash into the system since the pandemic hit a year ago which has helped subdue returns on bonds and fuel a rally in stock markets. But bond yields jumped last week as prices fell on heightened expectations that interest rates could be set to rise in the near future as the economic recovery takes hold.

The yield on 10-year US Treasury bonds slid to 1.434%, from 1.444% on Monday, marking its third straight session of declines. A related sell-off in European bond markets has also continued to ease.

Most major Asian benchmarks finished lower on Tuesday after an official at the People’s Bank of China said he was worried about risks emerging from inflated asset prices in international financial markets and the domestic property sector, according to analysts at Deutsche Bank.

Four things to watch on Tuesday:

Zoom Video Communications Inc jumped following results after-hours on Monday as the company forecast current-quarter revenue above estimates, as it expects millions of people to continue using its video-conferencing platform.

Target Corp on Tuesday reported a 21% jump in holiday quarter revenue, much higher than analysts’ estimates, as same-day delivery and store pick-up services helped fulfill robust demand for home goods, toys and groceries during the pandemic.

India is ready to offer incentives to ensure Tesla Inc’s cost of production would be less than in China if the carmaker commits to making its electric vehicles in the south Asian country, transport minister Nitin Gadkari told Reuters.

Volvo’s entire car line-up will be fully electric by 2030, the Chinese-owned company said on Tuesday, joining a growing number of carmakers planning to phase out fossil-fuel engines by the end of this decade.

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